Much of the conversation regarding the crisis affecting newspapers has revolved around the idea that people should not get content for free. The tone of this argument is unfortunate, because it reeks of the antagonism the music industry has shown to music fans in recent years, accusing them of stealing content. There is one key difference--there never was a true model for paid content for newspapers.
For most newspapers, the primary source of revenue has always been display advertising, and subscription fees are there really just to cover print and delivery costs, and assure advertisers that people actually read the thing. Raising fees to cover the rising costs is one thing, but it is hard to believe that newspaper companies would try to make print subscriptions a key source of revenue going forward.
However, the Hearst memo indicates that it intends to do just that.
However, it is probably easier to build an offline paid content model than an online one. Bill Bishop, an associate of mine here in Beijing, fellow SAIS graduate, and founder of CBS Marketwatch, once said to me, "People will only pay for four kinds of content online; Business/financial intelligence, entertainment (games/music), gambling, and porn."
Perhaps Hearst plans to start selling porn?
Links and Sources
For most newspapers, the primary source of revenue has always been display advertising, and subscription fees are there really just to cover print and delivery costs, and assure advertisers that people actually read the thing. Raising fees to cover the rising costs is one thing, but it is hard to believe that newspaper companies would try to make print subscriptions a key source of revenue going forward.
However, the Hearst memo indicates that it intends to do just that.
Our print subscribers don’t pay us enough today that we can say they are actually paying for content. Rather, we only ask readers to pay for a portion of the cost of printing the paper on newsprint and delivering it to the reader’s doorstep. We must gradually, but persistently, change this practice.Innovations in distribution and cost structure can make the print edition a lasting force. Indeed, technology like the Kindle are the first step in putting "print" (or rather text) back into our hands at breakfast time. However, there is no reason to expect a subscription model for paid newsprint will ever be viable. Concentrate innovative powers on local advertising and other ways of adding value to local businesses.
However, it is probably easier to build an offline paid content model than an online one. Bill Bishop, an associate of mine here in Beijing, fellow SAIS graduate, and founder of CBS Marketwatch, once said to me, "People will only pay for four kinds of content online; Business/financial intelligence, entertainment (games/music), gambling, and porn."
Perhaps Hearst plans to start selling porn?
Links and Sources
- Wall Street Journal: Hearst to Begin Charging for Digital News
- Wall Street Journal: Information Wants to Be Expensive
- Seeking Alpha: Newsday et al: Too Little Too Late
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