Posts Tagged ‘paid subscriptions’

When It Comes to Online Media, Just The Facts Are Free . . .

Wednesday, March 24th, 2010

The Pew Project for Excellence in Journalism’s annual report is once again upon us. As in the past, it confirms that the majority of us get our information online and that we do not want to pay for it, subscribe to it, or pay-per-click for an article.

The facts may be free, but getting them collected, edited, checked, and delivered to you online or otherwise still costs money. Like almost every else When It Comes to Online Media, Just the Facts Are Freeyou do in this life, you do get what you pay for. The old joke of “hiring’em young while they still got all the answers” may work fine for opining in the blogosphere, but may not cut it in the “knock three times and tell’em Dan sent you” world of investigative journalism.

Then there is this little issue of legality. At the recent OnCopyright 2010 conference put together by the Copyright Clearance Center in New York City, a self-proclaimed investigative blogger lamented the chilling effect of the many defensive lawsuits filed against him. While we may be prejudiced against the larger media organizations at times, they can stand up to this type of intimidation. To preempt the criticism they vet their sources and data prior to publishing and if that’s not enough they have financial resources to support their position.

Back to free; the cry is that everything should be free on the Internet . . . Well it never has been and never will be. The content and information you get every day on the web is being paid for by somebody, usually advertisers. For lots of reasons we can look at later, this subsidy is just not cutting it.

So if we want reliable, vetted information we have to support its creation. In other words, we have to pay for it. The organizations that are creating vetted content are searching for a way to do this. There are a number of models being tried currently.

  1. The pay-wall which is in place at a number of sites and variations are being implemented by the Financial Times and the New York Times.
  2. The pay-by-article model for which you pay only for what you read á la iTunes.
  3. A central subscription service for many participating providers.

I believe all of these are doomed to fail. However, I do believe there is a fourth solution that could prove viable and consumer-friendly. It would be a hybrid of the pay-by-article model and the aggregated subscription combined with some as of yet unreleased technology.

Over the coming weeks, I look forward to examining more closely some of these monetization options and having a bit of discourse on the topic. In the interim, I strongly recommend that anyone whose livelihood, especially journalists and public relations professionals, is tied to media read the Pew Report. And share their thoughts with myself and the readers of BurrellesLuce Fresh Ideas.

Can the Average Net-User Rationalize Paying for News Content?

Thursday, May 14th, 2009

Steve Shannon
Copyright The May 11th edition of the Wall Street Journal contained a very interesting op-ed by author Mark Helprin, “Copyright Critics Rationalize Theft.” In the piece, he discusses how opponents of copyright make various specious arguments that copyright stifles creativity, commerce, freedom and then he deftly points out how they are, of course, wrong.

Without copyright protections, creators of original works would have little financial incentive to create them; thus, there would be less of the very things challengers claim copyright inhibits. Think about how many books, articles, websites, songs, software, and movies wouldn’t exist if their creators weren’t able to make their living doing so.

Helprin’s points also collide with an emerging issue affecting the news media, newspapers in particular:  How will they profit from their creative works published online, which they currently give away for free, when they are not earning enough revenue from a failed ad-supported model? Publishers may look to a system of micropayments and/or “passes” (read: subscriptions) that will charge users to view articles. So, to riff on the title of Helprin’s piece, can the average net-user rationalize paying for news content?

My prediction is that we’ll see a many folks adopt this model right away. The first group is the same “influentials” and “heavy news consumers” who now read the paper version of publications. This group includes me, and I pay $40 a month to have The New York Times chucked in my driveway every day. I’d gladly pay the same to access its great content online, especially if the print edition went away. 

Then there is a second group consisting of “media snackers,” who only consume content from outlets such as The Washington Post, online.  The Washington Post has a print circulation of 665,000 but draws 9.4 million unique visitors to its site each month. Those 9.4 million don’t all live in the D.C. area, and their browsing clearly shows they value something about the original content. (I’m a D.C. area native and I keep up on the region everyday on, so I certainly see the appeal.)

Assuming a print subscription to The Washington Post also costs $40 per month, those 9.4 million unique visitors would each need to pay $2.83 per month to equal the subscription revenues the paper gets for its print edition. That’s less than 10 cents per day in any given month. Of course, not all 9.4 million will pony up, but you get my point.

That’s where the micropayment model would work. Want to read one article on a newspaper site that you found through search?  Pay 99 cents.  Prefer to get a pass to let you read as many articles as you wish for a month? Pay six bucks. Want a pass to a consortium of sites? I’m sure that will exist as well.

If you think about it, the vast majority of creative journalism these days is still being driven by traditional media for their ad-supported print edition, and posted online, mostly for free. As revenues associated with the print mode of delivery decline, publishers will need to make up that revenue or go out of business. Like it or not, net-users will have to rationalize paying for content. It may be a micropayment model I’ve outlined above, or some other model, but they will have to pay. There is no such thing as a free lunch (or journalism).

Would you pay for online content? Share your thoughts with us here at BurrellesLuce.