Tag online revenue

Times Online tells staff its paywall nearing rollout. Roll up for trials.

So here it comes. The Times Online paywall is set to be launched. Thanks to our friends at paidContent:UK for Stephen Brook’s posting today that reported News International Chief Executive Rebekah Brooks told staff that readers registered with Times Online will be invited to register for an “exclusive preview of the new digital proposition” this week.

Let me not just repeat Brook’s posting. Go over and have a look for yourself. However, I will repeat the memo reportedly sent to News International staff today, and which will be distributed to Times Online registered users.

FAIR PRICING FOR DIGITAL CONTENT

Message from Rebekah Brooks
Those of you that subscribe to The Times and The Sunday Times or have registered on Times Online will receive a communication starting from this week inviting you to register for an exclusive preview of the new digital proposition. This shows that we are getting closer to the launch of the titles’ new digital sites.
I have made no secret of our intention to start charging for quality journalism online.  As you may have seen speculation in the media about our plans, I wanted to take this opportunity to let you know why we believe this is such an important development.
We are committed to producing quality journalism that is written by professionals with a profound understanding of their subject and a commitment to provide well-informed coverage of the issues. Each of our titles, in its own way, has pioneered quality, professional journalism and we are unashamed to say we believe it has value.
In contrast, the industry is making the mistake of chasing millions of unique users by giving the audience more and more content for free. An obsession with traffic just doesn’t pay.

Great journalism needs investment and we are committed to supporting the fantastic work that you are all producing and delivering to our audiences. It is the quality of the journalism that you create, and the ways in which we produce and distribute it, that will continue to set our titles apart from the competition.
And to be clear, when we talk about charging for our content online, we are talking about charging a fair price. Price alone will not be a barrier to take up.  Of course, we expect to see the numbers of unique users of our sites come down dramatically. But the people who register to our new digital products will be customers who have made a positive decision to pay a fair price for journalism that they value, and they will be those who are more committed to and engaged with our titles.
This is an exciting development for our company especially as we will be among the first in the world to take this step. There are many who declare we have set ourselves an impossible task. But our company loves nothing more than challenging the status quo.
Shortly I will update you on our plans in more detail. But, in the meantime, I believe that with the combined force of your talent, commitment and hard work, we will, in the months and years to come, define a new future in the way we create, deliver and profit from our journalism.
Rebekah Brooks
Chief Executive, News International

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The New York Times in high stakes plans to charge online. Draconian, desperate or inspired?

New York Times to charge for online access from 2011. Photo: Andy Soloman

Has the bullet been bitten? Or is the bullet winging its way to the heart of its mark?

The announcement by top US newspaper, The New York Times, that starting January 2011 it will charge frequent users of its website has either been heralded by underfire newspaper execs, or derided as a desperate measure that will hasten the venerable institution’s demise.

The NYT‘s David Carr, in the Times’ Media Decoder blog, said the move represented a hedge.

People who remain reflexively bullish on free [content] ignore the fact that the clock is ticking on many of the legacy businesses that produce that content. The new approach is an effort to replace that ticking clock with a meter, and its success is not assured but to sit still would be dumb.

It is not the job of The New York Times or any other mainstream media company to give away its content until it can no longer afford to do so.

The charging plans appear fairly draconian. From next January visitors will be able to view a few articles free each month, but step over the threshold and they will be required to pay a flat fee for unlimited access. Subscribers to the daily or Sunday print editions will continue to receive full access.

The NYT has yet to say how much it intends to charge, or how many articles will remain free each month.

Newspapers have been grappling with plummeting circulations and advertising revenues. Readers have increasingly turned away from being brand loyal to being increasingly varied in choosing how they access their general news. The Internet, RSS feeds or news aggregators are able to through up numerous sources to information on any particular news story.

Yes, gathering news is an expensive business, but increasingly readers have been opting for free services to keep up with developments. As circulations decline, so advertisers look elsewhere. It’s worth noting that the the New York Times Company, which also includes the International Herald Tribune and 15 other daily newspapers, saw advertising revenue plunge 30% in the first nine months of 2009.

No doubt, this is a brave move by the NYT, but with technology, reader behaviour and news sources exploding by the month (think Twitter and other social networks, think of the boom in citizen journalism, and think cost) it is hard to see whether come next January the NYT is part of a crowd rushing to harvest online dollars or whether it finds itself back tracking as the “loyal” online  readers it wants to monetise dessert it for somewhere else.

As Reuters media reporter Felix Salmon wrote (and which was reported in the NYT):

Successful media companies go after audience first, and then watch revenues follow; failing ones alienate their audience in an attempt to maximize short-term revenues.”

So, is the NYT going to charge into battle only to find its followers have quietly disappeared? Will its brazen war cry fade into a garbled mumble? Or has it struck gold? My take is that it is not enough for legacy newspaper businesses to think they can easily transfer the model into a successful online business. They need to find ways to serve up the exclusive essential information that people will be willing to pay for.

This isn’t the first time the NYT has charged for acces. Back in the 1990s it charged overseas readers and then again a few years ago it tried another scheme to charge poeple for reading the op-ed columns. Both failed to gain any significant traction and were dropped.

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News International confirms banning NewsNow crawlers from linking

Rupert Murdoch, Chairman and Chief Executive O...

Image via Wikipedia

Following on from my earlier post that The Times Online had barred aggregator NewsNow.co.uk from crawling its website, it seems News International as a whole has the bit firmly between its teeth and has also banned the linking service from crawling any of its newspaper sites including including The Sun Online and the News of the World.

The Guardian reported News International as saying:

“We’ve been in communication with NewsNow for several months. We asked them to remove our content repeatedly from their indexing,” said a News International spokesperson. “Now, we will update our files accordingly for all our titles.”

“NewsNow has been using Times Online content as part of its paid-for, commercial as well as free services. They have continued to do so despite our direct requests for them to stop. As a result, we have taken the decision to disallow their indexing of our content,” the company said in a statement.

“News International makes a significant investment in journalism and we believe that it is entirely appropriate for us to ask that our rights are respected. NewsNow has acknowledged that they require our permission to use our content and, in the absence of our permission, has ceased to do so.

News International owner Rupert Murdoch and other media organisations, including UK newspapers and the Associated Press (AP), accuse NewsNow and other news aggregators such as Google and Microsoft, of being parasites and insist they should pay for access to news content. While Google quietly stopped indexing AP news shortly before Christmas, the News International action represents the first live bullets in what is destined to be a significant battle over the right to link and the basic building blocks of the Internet‘s interconnected world.

For the moment NewsNow seems to have been singled out. From where I sit, I wonder whether the relatively small UK-based operation represents a soft target for a posturing Mr Murdoch as he tries to find ways to bolster declining circulation and revenues at his major titles?

The really big target would be Google, but here the trade off between losing the opportunity to monetise traffic driven by the search giant while trying to unilaterally build online revenue from brand loyal readers sounds a little trickier. Is this a case of wanting it both ways, or will Murdoch eventually put his money where his mouth is and try and hold back the tide of internet traffic by hitting the big boys?

Come on chaps, play the game. The financial woes afflicting newspapers and their general inability to generate meaningful online revenues are not the fault of third party aggregators, who afterall, are driving traffic to their websites. The challenge here is to adapt and develop new business models that can thrive in a new digital world. Yes, it is not cheap to produce original news, but unfortunately it is not a rare commodity. Newspapers needs to find ways to engage with ther communities, not cast themselves adrift.

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VIDEO — $5 an hour to read online news (as seen in a 1981 TV report)

It’s always good to look back so we can understand just how far we have come. This 1981 TV news report was broadcast on KRON in the San Francisco Bay Area and showed how early home computer adopters were willing to pay $5 an hour (yes, $5 a hour) to consume their daily newspaper online. (Thanks to Graham Holliday (@noodlepie) for including this gem in his presentation “Publishing Kigali Wire”).

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VIDEO – Old and new media lock horns to generate fascinating discussion on the future of news

Keynote discussion of the week where the future of news media was chewed over at the Monaco Media Forum 2009 by Mathias Dopfner, CEO of Axel Springer, and Arianna Huffington of Huffington Post fame. Conversation is hosted by Christine Ockrent, CEO of France 24.

The resulting video is a fantastic exploration of the tensions between the old and new schools of journalism, commercial pressures and just what the future may (or may not) hold.

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Murdoch’s News Corp cooking up a storm over plans to ban Google

Paywallman flies to newspaper rescue
Paywallman flies to newspaper rescue

And the drum keeps playing. It’s almost as if Rupert Murdoch believes that if the News Corp digital tribe keeps chanting the mantra that Google will be blocked from indexing their sites, the future of publishing and the wealth of publishers will be preserved.

On Friday, the Telegraph reported that Jon Miller, former AOL head and now News Corp’s chief digital officer, told the Monaco Media Forum that the News Corp door would soon be slammed shut on Google and his company would lead the media industry in a new direction.

“There is real tension surrounding the free versus pay debate,” Miller was quoted as saying. “It will play out in the next two years. We believe that the value of high quality content is not recognised online (by giving its away for free) so something needs to happen.”

Now, like him or loathe him, Murdoch is one of the greatest media moguls the world has seen. Over the years he has proved the naysayers wrong time after time. And what about now as the news publishing industry lurches ever deeper into crisis? Can pay barriers be thrown up with the expectation readers will remain loyal to brands and hand over cash to secure the privilege of continuing to consume News Corp content?

Not on your Nellie!

As I’ve mentioned previously, the actions of News Corp and other news publishers ignore the plain simple fact that reader behaviour is radically changing. Brand loyalty is fading, and having got used to free content online people are simply not prepared to pay for news and general information. Beyond refusals to pay lie the new worlds of social networks, aggregator services, citizen journalists and ordinary people just using technology to communicate in ways that only a few years ago were purely in the realms of science fiction.

At the heart of the online world sits the link economy. Links are what drag eyeballs from place to place. People increasingly follow through on recommendations from trusted sources including search engines, people they know, aggregators, or Twitter (which is becoming hugly important in setting readership consumption agendas). What people are doing less and less, is deliberately seeking out the view espoused by the old media brand.

The days of “Dear boy, don’t you know it was in The Times?” as a means of communicated worth, trust and accuracy are gone. Today, readers will look across a number of sources depending on what is served up to them. Increasingly, the reader also doesn’t want just a single view but a panorama of views across different credible or even biased sources.

Murdoch accuses news aggregators of being parasites and search engines of stealing premium content beyond what would be governed by fair use. It’s not just that he is concerned with the revenue value of their content being diminished, but there is a parallel discussion centred on the cost of gathering top notch news. It is a very expensive business to have foreign correspondents scattered around the world. The days of the bottomless expense accounts and bespoke Savile Row safari suits are long gone. As an ex-foreign correspondent myself with a great love of news, the argument over who will pay is one I grapple with.

But, as with the newspapers, we have to let the past be the past. If we accept that traditional publishers face declining revenues for the legacy business the challenge becomes how to open new revenue streams while looking to prioritise expenditure on generating premium content.

Nick Gregg, CEO of StrategyEye, succinctly captures the key issues in his paper “The Next Two Years of Publishing — Where it Needs to Move”.

“Large editorial journalist bases are expensive and out of tune with [the] new world,” he says. “A shift to a blend of ‘investigative’ writers and ‘curator’ writers is needed to reduce costs and deliver wider information in the succinct manner modern users expect.”
Editorial models need to be reinvented and technology needs to be harnessed to exploit new content opportunities. He fires a loud warning shot over the bows of RMS (Rupert Murdoch Ship) News Corp.
“…knee-jerk reactions are not the way forward. The current vogue for some publishers to say ‘let’s shift to paid subscription walls’ is potentially highly damaging except in certain niche content areas. Imposing subscription walls may generate some revenue from a small percentage of loyal readers. But it could kill a brand in the long run if the next generation of target audience simply never engages with its content.”

Back over at News Corp, Miller reckoned newspapers in the UK could survive after Google cold turkey.

“The traffic which comes in from Google brings a consumer who more often than not read one article and then leaves the site. That is the least valuable of traffic to us… the economic impact [of not having content indexed by Google] is not as great as you might think. You can survive without it,” the Telegraph quoted him as saying.

I have a feeling I will be frequently coming back to this topic . It would be lovely (from a newspaper viewpoint) if news stand sales could simply be replaced with online subscriptions or even micro sales. But considering where we are in the freemium world, this is about as likely as Murdoch being asked to turn out for England on the wing.

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Rupert Murdoch’s anti-aggregator stance undermined by his own titles

Rupert Murdoch: Just say no.
Rupert Murdoch: Just say no. (Photo: World Economic Forum)

Whoops. Has Rupert Murdoch been caught out deftly practicing what he has so rabidly been preaching against? While he has ranted about the “parasites” that are Google and other news aggregators that he accuses of “stealing” his content, it appears that his own sites have been quite happily indexing and aggregating content from third parties.

In a thoroughly fun, revealing and totally mischievous post by Techdirt it seems many of his own titles, including the flagship Wall Street Journal and sites owned by the ever-reactionary Fox News, are offering content aggregation services to their readers. Oops.

I’m not blaming the staff at these titles and websites for practicing what is, after all, perfectly acceptable and expected in the inter-connected modern Internet world, but Murdoch really should check his own house is in order before preaching hardship.

People in glass houses shouldn’t throw stones, Mr Murdoch.

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AWARDS — Megas — MediaGuardian Innovation Awards 2010 open for entries

FireShot capture #040 - 'The MediaGuardian Innovation Awards 2010 I Megas I guardian_co_uk' - www_guardian_co_uk_megasUK national daily The Guardian has opened its call for entries for its third annual MediaGuardian Innovation Awards, or Megas as they are modestly known.

The awards aim to recognise the best in innovation at a time when the media industry is experiencing dramatic shifts in reader or consumer behaviour and the emergence of radically different revenue and business models.

The Megas will reward innovation across 13 categories, with a top “MediaGuardian Innovator of the Year” award going to the person judged to have had the greatest impact on media innovation over the past year.

Full list of categories (and links to the details):

  • Launch – The most innovative launch
  • PR – The most innovative buzz creation
  • Advertising – The most innovative advertising work
  • Creative – The most creative, pioneering design work
  • Technology – The creation or application of a new technology to make a real improvement in delivery rather than just as a gimmick
  • Use of web platforms – The use of existing tools and data services to create new and exciting experiences for people on the Internet
  • Applications – The most innovative apps
  • Business model – An outstanding example of an innovative approach to charging (or not charging) for content
  • Startup – The best new companies registered between December 2008 and December 2009 that demonstrate a truly innovative concept which has potential to shake up the media world.
  • Community engagement – Companies which have extended their reach by creating a community to engage their audience
  • Campaigning – The most innovative methods of galvanising public support for the greater good. Entries open to public or charity sector organisations
  • Gadget – This category will reward phones, MP3 players, audio and reading devices which are innovative in their technology, design and usability.
  • Independent media – open to non corporate sector companies or individuals which demonstrate the power to influence policy, push boundaries and make history rather than just reporting it
  • MediaGuardian Innovator of the Year – The media figure judged to have had the greatest impact on innovation in the media in the past year
All work submitted must have appeared for the first time between 31 October 2008 and 5 December 2009. Entries must be submitted by 4 December and the winners will be announced at an awards ceremony in London in March 2010.
A full list of last year’s winners can be found here. Follow the awards on Twitter on @guardianmegas
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Survey gives massive thumbs down to paid news & sports content

Oh dear, another week and another piece of research delivering much the same grim message. No surprises then when a sample of 2,ooo UK respondents overwhelming gave a thumbs down to paying for nearly all forms of online content including news and sports coverage.

Who will pay for news & views? Not the readers, it would appear
Who will pay for news & views? Not the readers, it would appear (via MediaWeek)

The study, by Lightspeed Research and commissioned by Global Web Index, gives traditional media executives yet more food for thought.

Aside from the 91% saying they would never pay for news the survey also hammered a nail into the coffin of those that thought deeper, richer content would have people reaching for their wallets with 90% saying “forget it” to paid-for analysis.

The findings will only serve to up the pressure on traditional publishers looking to redefine business models for the online world.

The issues here are controversial. Murdoch is looking to charge for access to some of his newspapers and TV channels, while other British newspapers are believed to have been putting pressure on news aggregators in a bid to grab revenues via the third economy — those that simply point the way to content provided by others.

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The Economics of Abundance – Where’s the money in a freemium world?

Short and pithy, but highly relevant video. Where’s the money in a freemium world? Useful introduction to the “Economics of Abundance” from Mike Masnick and the Techdirt team that promises to be the first in a series of three short films. Following on from my post yesterday about UK newspapers targeting aggregators such as NewsNow in bid to secure or protect traditional reader revenues, this is not only the future, it is now. Painful to some maybe, but ignore at your peril.

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NewsNow aggregator comes out fighting against newspaper threats

'NewsNow_ Journalism' - newsnow_co_uk_h_Current+Affairs_Journalism

In a move slammed by commentators as being akin to a herd of donkey’s suing the inventor of the wheel, a number of national UK newspapers have apparently been making legal threats to content aggregator service NewsNow.

What on earth is going on here? While details of the threats have yet to emerge, we know newspapers have been seeing their commercial prospects head south and we know that the key to ensuring future survival is to elusive generate online revenue streams. But what these newspapers seem to be doing is shooting a messenger and not addressing the roots of their problems.

NewsNow is a basic linking service. It is not stealing any content, purely enabling users to search on key words for links that then take people through to the source article. Links are at the heart of the web. They are what make things tick. They generate traffic while building relevancy for SEO purposes. As I was building the online premium subscription breaking news service ICIS news, I wanted to ensure we were on NewsNow. For me there is a clear correlation between free traffic, which in turn generates leads and which then can be converted into REVENUE.

In an open letter to UK national, regional and local newspapers, NewsNow chief Struan Bartlett said his company and other aggregators had received legal threats over the possible imposition of new controls on how aggregators can link to external websites.

Bartlett’s letter specifically named The Times, The Sun, The Guardian, Daily Mirror, The Daily Telegraph, The Independent and the Daily Express and said that publishers were misguided in thinking that aggregators could undermine newspapers.

We can’t speak for all aggregators but for our part at NewsNow, we don’t do anything that detracts from the value of your content. We don’t redistribute your web pages to anyone. We operate within the law, and we don’t do you any harm.

Far from it. We deliver you traffic and drive you revenues you otherwise wouldn’t have received. The idea that we are undermining your businesses is incorrect. It is fanciful to imagine that, if it weren’t for link aggregators, you would have more traffic or revenues. We provide a service that you do not: a means for readers to find your content more readily, via continuously updating links to a diversity of websites.

If newspapers persist in placing themselves in a firmly sealed box they will see traffic decline. People will not type in individual URLs. The reader today needs to have relevant content pushed to them. People are increasing less inclined to go out and pull content in the hope it is what they may want to see.

The problem here goes to the core of the paid versus free debate. News Corp’s Rupert Murdoch and Tom Curley, head of the Associated Press, have laid down the gauntlet to the major players like Google and Microsoft as part of their bids to ensure either the readers or the aggregators pay for the content they disseminate.

Bartlett said:

Links market your content to readers. Abolish them, and readers won’t all type in your homepage address. They will go elsewhere. We don’t believe we are alone in this view. Many website traffic managers, journalists and editors within your own organisations clearly share this view. We know, because they’ve told us directly that they strongly value our linking to your websites.

There can only be one loser in the Battle of the Links — the newspapers. Aggregators will simply look elsewhere for the content, and eyeballs will be dragged away with them. Brand loyalty is increasingly a thing of the past, especially when it comes to consuming news online. Nico Flores makes some good arguments in favour of the link economy on his blog On Demand Media.

We’ve seen what’s happened to the music industry as it utterly failed to innovate and drive new business models in the face of escalating free or illegal downloads, and now, it appears, newspapers and other news sources may be about to make the same mistakes. It is impossible for anyone to maintain monopoly over general information, and that is where the majority of “news” sits.

What is important is ensuring the traffic is driven down a preferred road and that the content provider is then able to engage directly with the reader to seek ways to monetise content that is carefully targetted and highly relevant to a specific user. The key here is all about embracing the future, not fighting it. Bows and arrows are no good against nuclear weapons.

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Y Combinator looking to fund great ideas in paid online content

Y Combinator logoUS-based venture firm Y Combinator is seeking the next great idea to drive new life into paid content and journalism as traditional newspapers and magazines die.

The hope is that new ideas will be generated to build paid-for content sites from the position of making money first, rather than supporting a particular form of journalism and then trying to figure out how to make money from it.

I’m making no comments here, just going to leave you to decide. The full wording of their appeal for start-ups delivering paid for content and quality journalism follows.

RFS 1: The Future of Journalism

Newspapers and magazines are in trouble. We think they will mostly die, because we think we know what will replace them, and it is too far from their current model for them to reach it in time.

And yet people still need at least some of what they do. You can’t have aggregators without content. So what will the content site of the future look like? And how will you make money from it? These questions turn out to be very closely related. Just as they were for print media, initially. The reason newspapers and magazines are dying is that what they do is no longer related to how they make money from it. In fact, most journalists probably don’t even realize that the definition of journalism they take for granted was not something that sprang fully-formed from the head of Zeus, but is rather a direct though somewhat atrophied consequence of a very successful 20th century business model.

What would a content site look like if you started from how to make money—as print media once did—instead of taking a particular form of journalism as a given and treating how to make money from it as an afterthought?

(The good news is, we think the writing will actually end up being better.)

Groups applying to work on this idea should include at least one person who can write well and rapidly about any topic, one or more programmers who are good at statistics, data mining, and making sites scale, and someone who’s reasonably competent at graphic design. These functions can of course be combined, and in fact it’s even better if they are. Ex-Googlers would be particularly well suited to this project.

All the details on how to apply for funding in winter 2010 can be found here. What ideas are out there?

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AP targets slower news but will it shoot itself in the foot?

AP Associated Press LogoIn a Twitter age when real time means (almost) exactly that, the comments from Associated Press supremo Tom Curley that the agency was considering offering news stories exclusively to some online customers for a short period seems to fly in the face of common sense and exhibit a lack of awareness about online news trends.

In remarks made at the Foreign Correspondents Club in Hong Kong this week, Curley said deepening competition between Google and Microsoft presented content providers with a golden opportunity to cash in as the two internet giants competed to grab every bigger online audience shares.

The AP licenses its content to many online services — including Google, Yahoo! and Microsoft’s MSN — as well as providing content to websites belonging to newspaper and broadcast clients worldwide. The AP, in its coverage of the  comments, said Curley echoed the complaints of many news companies that say sites such as Google have reaped a fortune off their articles, photos and video without paying fair compensation.

All AP clients currently get breaking news delivered at the same time, but these ideas would end that. As an ex-agency (Reuters)  correspondent I’m deeply concerned by these developments on two counts:

  1. The AP will break very few exclusives of earth shattering importance and will therefore find itself behind the news pack, thus undermining its value to clients and readers (shoot in foot syndrome?);
  2. Traditionally, every news organisation wants to be fast and first with breaking news. As news vendors struggle to compete with Twitter and citizen journalists, this seems to be a mercenary attempt to control news output and is doomed to fail (although it may raise a little extra revenue).

To be fair, Curley did not say just how such a service would work, or what kind of premium could be charged, but he did suggest offering “exclusivity” for as little as 20 or 30 minutes. My fear is that this could be the first step in trying to sell rights to news in much the same way that rights are so strictly controlled to major sporting events. The difference here is that this can’t work.

We know that relations between Google and the AP have been deteriorating for a while now. Back in April, Curley indicated that talks between the two over content usage rights weren’t going well again, and threatened to pull the plug on the AP feed to Google.

Come on Tom Curley, think again. The challenge to build online revenues needs creative solutions, not something that ultimately devalues the core product — your news.

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The Economist confirms to readers new online charging plans

Yesterday, The Economist’s plans to raise its online paywall were reported here and elsewhere. Today, the publication has formally told its readers. The following was emailed out this morning.

The Economist

Email from The Economist to subscribers

Dear Reader,

I’d like to inform you about important changes at Economist.com.

Beginning October 13th, we will be limiting access to certain sections of our site to subscribers only. Over the past few years, Economist.com has become a hub for intelligent discussion, with news commentary, blogs and an award-winning debate series. We will continue to encourage both subscribers and non-subscribers to participate in those conversations. We will also enhance the experience we offer our most loyal readers by expanding our subscribers-only features.

Currently, all content published within the last year is free of charge. Soon, this access will be limited to articles published within the last 90 days. The print edition contents page, which offers a convenient way to browse articles and features from the latest issue of The Economist, will also be limited to subscribers only.

Through these complementary aspects of Economist.com, we will continue to foster intelligent discussion and debate, while enhancing the value we bring to our community of subscribers.

I hope you’ll continue to visit the site and enjoy all it has to offer.

Sincerely,
Ben Edwards
Ben Edwards, Publisher
Economist.com

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Economist to build website paywall higher for archive content

The Economist is to expand its archive pay wall from Tuesday 13 October to all content more than 90 days old from the existing one year barrier. Online readers will continue to be able to access the last three months and the latest issue for free, as well as blogs, audio-visual and other sections of the site.

The Economist online is to expand paid subscription only access

The Economist online is to expand paid subscription only access

The Economist has been somewhat insulated from the woes affecting other traditional news publications, with the various versions of the “weekly newspaper” delivering a combined net circulation per issue of 1.4 million copies and claims four million readers globally.

Ben Edwards, publisher of The Economist’s website, was quoted by Media Week as saying the brand online had expanded beyond the print issue to become “a hub for intelligent discussion and debate”.

He added: “Our intention is to continue to develop intelligent discussion as a free, advertising-supported experience, but to charge for the weekly magazine online.”

The online subscription costs £50 a year, or about half of the combined print edition plus online package.

It can be argued that The Economist is in a better position than most when it comes to charging for its online content. It’s model is unlikely to signal much hope for newspapers wracked with declining print subscriptions and display sales. It is not their archives that will deliver the revenues needed, but the breaking news and most current content.

Possibly part of the argument here is that The Economist is doing this simply because it can. It’s coming from a position of strength and is seeking to exploit that. Yes, its display revenues are down massively, but its print versions been riding a wave of success and it has grown its reach into the social media sphere massively. Not bad for a high brow rag.

The recent Top 25 Digital Influencers in News & Politics report from digital marketing consultancy Sparxoo placed The Economist at number 19:

Just ahead of Newsweek, The Economist is surprisingly competitive in the social category. The Economist does very well on Facebook (placing sixth) and breaks into the top 10 most backlinked sites. In fact, the Economist has more fans than CNN, MSNBC, the BBC and the Huffington Post combined, with 158k.

Is this offering a golden key to a brighter publishing future? Economist editor John Micklethwait believes so:

I’m more optimistic about the media industry in the last two or three months,” he told the The Gazette in Montreal last week. “I think the message has got through that people need to pay for content.”

Yes, The Economist display revenues have slumped, but these have been countered by growth in print subscription revenues and a savvy approach to social media and the web.

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FT chief says charging for content essential for quality journalism

Financial Times Chief Executive John Ridding has urged newspaper websites to dump the “free is good” doctrine and work out what they can charge for.

In an interview in today’s Media Guardian, Ridding said charging was the only way to safeguard the future of quality journalism.

“I fundamentally believe readers are willing to pay for quality journalism,” Ridding was quoted as saying on MediaGuardian.co.uk.

Ridding said newspapers had to identify what sets them apart and look for ways to monetise that value.

Newspapers have been having a torrid 2009. Many have closed, some retreated to online versions, while others have tried to tough it out. But nearly all have one thing in common — they have seen profits tumble, or at worst key indicators slump deep into the red.

Those operating in niche markets have that unique content that people are prepared to pay for. If that content is also business critical then the subscription model can be an excuse to print money. While the FT and Wall Street Journal may be able to successfully drive subscription revenue, the majority of general newspapers are struggling to find the golden key within their content offerings.

“It is definitely more difficult for more general publishers [to charge] but often I feel there’s a more fatalistic response, saying ‘It’s not possible’,” Ridding said.

But, on the same day that Ridding’s remarks were published, it was reported that the daily London Evening Standard announced it was to drop its 50p cover price and become free in a bid to increase circulation to almost 600,000 a day from a current level of 250,000.

It seems to me the newspaper business maybe groping in the dark somewhat.

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AOP says about 70% of members charge or intend charging for content

A poll from the UK Association of Online Publishers (AOP) says about half its members currently charge for some or all content on their websites, while a further 20% said they were planning to begin charging in the next 12 months. Big change from a similar poll two years ago when 54% of AOP members said they had no plans to charge for online content.

In the AOP 2009 Content & Trends Census, association members were asked about digital opportunities, threats and trends, as well as paid and free content; user-generated content (UGC); social media; content delivery mechanisms; mobile sites and mobile applications.

Not surprisingly, the biggest opportunities were seen in

Mobile Web (85%), UGC (75%), High speed broadband (75%), Community/social networking (73%) and behavioural targeting (73%).

And the threats:

The economy (70%), Competitors (53%), BBC (50%), Google (38%) and Government and legal restrictions (35%).

Lee Baker, Director of AOP, was quoted as saying:

“We’ve all been talking about a tough year for industry and particularly for publishers, but again our Members show their ability to adapt and take on new challenges in the form of exploiting new formats. A strong vote for Mobile and Mobile Apps is encouraging for the industry as a whole; and use of Twitter is a particularly interesting development in terms of use of new mechanisms to publish content.”

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Numbers dictate size of media challenge

Browsing through this month’s (hard) copy of the ever-stimulating “In Publishing” to read Ray Snoddy‘s “Figuratively speaking online doesn’t add up”.

If you’re sitting comfortably, then consider these:

Newspaper annual reader value — £155 (subscriptions and ad revenue) against just £5 in average annual online newspaper revenue.

Time readers spend reading newspaper/month — 12 hours against just 10 minutes on newspaper websites, according to comScore.

Penny for your thoughts, Mr Murdoch?

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Is there a future for paid content online? Poll says “No”

The latest poll on whether people in Britain would be willing to pay for online news content makes gloomy reading for the likes of Rupert Murdoch and his News Corp hounds looking to reverse their enormous £2.1 billion losses in 08/09. If they were looking for a glimmer of hope, they are unlikely to find it in the paidContent:UK/Harris interactive poll published this week.

In a nutshell — and this comes a s no surprise to me — people want to pay nothing or next to nothing.

Let’s let the graphics speak for themselves…

pcuk-harris-poll-paid-content-preferred-annual-sub-price-mpcuk-harris-poll-paid-content-preferred-day-pass-price-m

pcuk-harris-poll-paid-content-preferred-per-article-price-m

It seems to me that if as a news publisher you are dishing up the standard fare of general stories covering politics, celebrity tittle tattle and sports you are really not going to get very far with building an online revenue stream from your content alone. The key is — and will always be — just how essential, unique or exclusive is your content? If it is set to make a big difference somehow and enable people to make money or create competitive advantage then the price that can be  charged is directly proportionate to the value of the information. What hope then for the consumer monsters competing against each other, huge publicly funded organisations such as the BBC, and the legions of bloggers, twitterers and others feeding the social networks? Brand is no longer sufficient to keep and monetise readership. The days of hearing: “Don’t you know it was in The Times, dear chap” as an expression of assurance that something was fair and true are long gone.

Faced with ever expanding choice and being swamped with information, disinformation, opinion and libellous streams from each and every direction, the reader has become far more discerning in its ability to discover, verify and react. While there remains rich and varied streams of content from numerous sources, the reader will remain reluctant to pay. In the paidContent:UK/Harris Interactive poll, a huge 68% say they would be willing to pay just a penny or two to access articles, while the majority, if faced with having to pay and no choice, have indicated they would not pay more than £10 a year. Seems the thumbsuckers need to get sucking again.

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