Charging for news for all the wrong reasons
A recent study finds that as many as 60 percent of news outlets are evaluating a paid subscription model for their content. If these papers want to save journalism, they might just have to give up on trying to save print.
The study was published by the American Press Institute, along with ITZ Publishing and Belden Interactive. It was intended to help publishers understand their peers’ approach to monetizing digital content.
The top drivers for news organizations looking to charge for their content online are to capture new revenue and to preserve print circulation. This is where, in today’s competitive landscape, the papers are doing it all wrong.
Although 60 percent of newspapers are considering a pay wall, only 25 percent have any plans to take the plunge in the next six months. That will still leave a sizable chunk of the industry using an ad-supported revenue model for their online news.
So what will consumers naturally do if they can get the same product somewhere else for less? On the Internet, the answer is as easy as typing in a different Web address and getting the same product for free.
Now some news organizations might be able to get away for charging for premium offerings. However you simply cannot charge more for the same news as your competition and expect to thrive.
Newspapers must learn to make due on revenue from advertisers based on the strength of their audience. Charging the audience will undoubtedly turn off their audience and jeopardize their online advertising revenue.
As far as saving print journalism goes, this is a losing battle that isn’t worth fighting. Mediums change over time, from a chisel into stone, printing on paper and now the Internet.
Fighting for the print medium to stick around is not only missing the point, it’s endangering the newsroom. What’s so bad about shutting down a few printing presses to focus on high-quality journalism?
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