Paying for online news…the debate continues
Thursday, October 15th, 2009 by Jo Rosenberg
Latest research shows that more than a quarter of people have cut back on buying magazines and newspapers in the economic downturn in favour of free online content.
However, the results also reveal that this does not mean people are more open to subscription services. Just 11% said they currently pay for online media and a further 11% said they may begin a subscription in the next 12 months.
But this begs the question of why? Why would a consumer buy access to news online when they can get it free elsewhere?
Surely a precedent has been set after receiving it free for years and it’s too late to change?
Rupert Murdoch, whose global empire has made a huge financial loss, declared recently that the “free-for-all in online news has ended” and has pledged to shake up the newspaper industry by introducing charges for access to all his news websites.
I don’t doubt Murdoch’s ability to pave new ways, but is this really the best way of increasing revenue?
With the amount of blogs and social networking sites out there, far fewer people rely on traditional media for their latest news fix. That isn’t to say a paid for model won’t work for specialist media, where there’s a niche audience, but mainstream news is readily available, whenever we want it.
But many believe it’s purely down to behavioural change. As David Elms, media partner at KPMG, the company behind the research, says: “Monetising online content is the holy grail of the media sector. The challenge is changing the mindset of a consumer population that is used to accessing free online content.”
Steve Brill, co-founder of Journalism Online, which promises to help news outlets charge for content, says: “People have been exchanging cash for newspapers and magazines for decades - they just need to get into the habit of doing so online.”
But Vivian Schiller, president and CEO of non-profit NPR, who believes in making pay optional, said: “To think that we are so smart that we can retrain the audience, that’s an awfully elitist, condescending, and frankly old perspective.”
Instead of charging for subscriptions, perhaps newspapers should look at what they’re offering and provide the best online content to attract lucrative advertisers?
