new york times

Why the NYT’s Paywall Could Succeed

By Mark Evans in Media 3 Comments Tags: , ,

Apparently, the New York Times is poised to take the plunge and introduce a pay-as-you go system for its content. It’s a bold move given that few consumers are willing to pay for content based on a survey done last year.

While there are critics who don’t believe newspapers will be successful in selling content, my take is that if anyone is going to be successful, it’s the New York Times.

Why?

Perhaps the biggest reason is the NYT isn’t offering a commodity product that can be accessed in a variety of other places. The NYT produces high-quality journalism that ranks among the best in the world so, in theory, it’s content with value in the same way people pay for the Wall Street Journal.

Fundamentally, any attempt to convince consumers to pay for content starts with great content. But this is just the start as newspapers going this route also need to offer convenience such as offering access to content via smartphones, tablet computer or e-reader. The easier you make it to read content, the more value it will have, especially among mobile consumers used to paying for content.

From a high-level perspective, the NYT’s decision could have major ramifications by encouraging other newspapers to also charge for content. If this happens and it becomes more difficult to get free content, there’s a chance that paying for content becomes more widespread. If that happens, then perhaps the consumer mindset of getting online newspaper content for free could erode.


8.5% Yogurt & Great Tech Ideas

By Mark Evans in Main Page 5 Comments Tags: , , ,

Screen shot 2009-12-30 at 6.34.04 PMI was reading David Pogue’s 2009 “Best Tech Ideas”, and it made me think of yogurt.

Not just any yogurt but yogurt made by a Quebec company, Liberté, that features 8.5% milk fat. In a world dominated by no-fat and low-fat, a yogurt with 8.5% fat is extraordinary (and extraordinarily delicious!).

So how are “Best Tech Ideas” and amazing yogurt alike?

Innovative technology often goes against the grain by offering consumers something different or unique that makes it stand out from the crowd. In the same way, Liberté’s yogurt is different from most other yogurts by playing up its fat content in a world where fat is seen as bad.

Are Newspaper Paywalls Possible? Maybe.

By Mark Evans in Media 4 Comments Tags: , , , ,

I finally got around to reading David Simon’s essay in the Columbia Journalism Review about how newspapers, particularly the New York Times and Washington Post, need to erect paywalls to ensure their financial viability. (Note: It’s somewhat ironic that the essay available for free online.)

Simon’s argument isn’t new but it does put the spotlight on whether newspapers can survive if they can’t figure out a way to generate significant revenue from the Web.

As important is the whether newspapers can continue to offer content that people will pay to read – be online or off-line – if industry conditions continue to shrink newsrooms and the quality of the people working in them.

While I love the idea of reading the NYT, The Guardian, The New Yorker and BusinessWeek for free, I also recognize it’s a take-and-no-give proposition. I read great content but don’t pay for it because it’s not required.

But – and I’m probably in the minority – I would be willing to pay if it meant getting access to high-quality content that was behind a paywall. For example, I would pay $5 to $10/month for the NYT, $5 for an online Globe & Mail subscription and $5 for BusinessWeek. That’s $15 to $20 that I’m not paying today – not a lot of money but hardly insignificant in the scheme of things.

Perhaps the most interesting angle to Simon’s essay is how TV has evolved from free to fee with the rise of speciality channels. In the process, consumers are paying $50 to $150/month for cable or satellite service.

How did that happen? How did TV manage to drag consumers to a paid product when a free product was available. Simon suggests initially it was content not available from broadcasters such as all-day sports and weather. In time, he said speciality channels have thrived because the content got better.

The question is whether are parallels to the newspaper business? Can newspapers convince people to pay for high-quality content that’s not available elsewhere? For newspapers such as the NYT and the Guardian, the answer is probably “yes”. For local newspapers such as the Toronto Star, it’s possible, although they need to get a lot more local to enhance their “value”.

Earlier this week at TEDxTO, Mathew Ingram argued Old Media (aka newspapers) needs to evolve, rather than be saved. and that newspapers need to engage with readers rather than just filter and broadcast.

These are certainly valid arguments but the challenge – and problem – is people such as Mathew need to be running newspapers because they “get” the Web and its opportunities. Of course, it would have better if people such as Mathew had been running newspapers five years ago.

As for whether paywalls can happen, ]Simons is right that everyone has to jump on the bandwagon at the same time if the concept can succeed. Someone has to make the first move because no one is going to leap out of the trenches to fight the good fight if it means doing it alone.

My take is the person to lead the charge is Rupert Murdoch, rather than the NYT or Washington Post. Murdoch is enough of a rebel with enough of a global media empire to make it happen, and open the floodgates for others to follow.

One final thought: While newspapers have embraced “free”, it’s been puzzling why magazines have followed suit given the kind of content they produce. If any media should be leveraging paywalls, it is magazines.

More: The San Jose Mercury’s Mike Cassidy has a column talking about the newspaper’s role – as well as the fact the number reporters working for it has dropped to 125 from 400.


Newspapers Must Charge for Online Content

By Mark Evans in Media 4 Comments Tags: , , ,

As the newspaper industry grapples with how to embrace the Web and remain financially viable, I’ve become increasingly convinced newspapers must charge for content in some way, shape or form.

To some, this is a strange approach given premium services have been a failure, which is why most newspapers are still trying to drive online revenue through advertising. Meanwhile, more newspapers are disappearing or becoming streamlined, online-only operations.

The biggest argument against the ability for newspapers to charge for premium access is consumers will turn elsewhere for the newspapers they want.

In many respects, this is accurate, which is why newspapers need to focus on charging for value-added content (columns, features, archives, editorials, inside access) that aren’t available through the Web.

Of course, many newspapers may not have the luxury of offering content people want to pay to read. But I think some the world’s leading newspapers such as the New York Times, Washington Post, Wall Street Journal, Financial Times, Telegraph and The Guardian can successfully pull it off.

If you look a look at the blogosphere, for example, it’s the major newspapers that attract the most links. This suggests newspapers are writing the most interesting content, which should be a pretty good indication it has some value.

My theory is the major newspapers will start to introduce premium services soon. Janet Robinson, CEO with the New York Times Co., said earlier this week that premium services are being explored that are “centered on a metered model and a Times membership model with special offerings.”

Meanwhile, the Financial Times has quietly launched a new system whereby online readers need to register. There are two free packages, as well as premium packages that sell for $3.49 and $5.75 a week.

You have to know media mogul Rupert Murdoch is watching carefully, and it’s only a matter of time before the Wall St. Journal, the New York Post and The Times launch premium services.

If the New York Times, Wall St. Journal, Financial Times and others go premium, it will likely encourage more newspapers and magazines to offer premium services as well.

The pendulum is slowly starting to swing from free to fee. It’s not going to be widespread or swing all the way back to fee but the free-for-all is coming to an end for many major publications.

For more, check out VentureBeat and ValleyWag, which talks about New York Times Silver and Gold packages that could be sold for $150 and $300 respectively.


Related Posts Plugin for WordPress, Blogger...