It is becoming increasingly clear that a business model built on offering free online content supported by advertising isn’t working. It’s economically unworkable – at least as the only way to generate revenue – and unless something more viable emerges, the disappearance of magazines and newspapers will continue to happen.
The cracks within the free model are starting to become more obvious. The Economist, for example, has announced that articles older than 90 days old will only be available to subscribers. It’s not a radical move but a small step towards embracing a business model that makes sense for The Economist and its readers.
The Economist’s move comes shortly after Gourmet magazine closed on Monday after 70 years in business. It will now continue as an online-only entity.
While newspapers will continue to struggle with free vs. fee, my sense is the magazine industry will start to embrace fee. It’s a market that is more fee-friendly because many magazines are not producing content that’s a commodity. In many cases, the writing offers unique perspective and insight, which people should be willing to pay to read.
2 Comments
I agree, any media business that creates value through their stories or reporting should be able to charge readers a fee. The problem with newspapers is that they have become one more place for wire services to publish their work. The future belongs to local media and original in depth articles. Wether magazines or Newspapers.
I also agree Mark. "free" is such a misnomer since somebody somewhere is paying the bill. Free gmail, google, yahoo etc etc…are from companies making billions selling your "habits" and attention to companies so they can promote. This is not free. Television and Radio is "free" as well. All you need is a receiving device. But, as we all know, it's paid for by advertising, no differently than the "free" services on the web. The users of this "free" service are actually the product these companies sell to their paying customers. Is advertising dead? No, I don't think so. Its focus needs to change so that it actually reaches the audience at the right time. Once the real value of semantics (Web 3.0) is understood and implemented, we'll likely see an entirely new advertising paradigm emerge. We'll still see charges for content emerging but there's still more money to be made through effective advertising. Those who pay for content just become better advertising targets.