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Is there a future for content charging

Last post 03-11-2009, 9:32 AM by Carolyn Morgan. 3 replies.
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  •  11-11-2008, 7:30 AM 332

    Is there a future for content charging

    I see that another publisher is in the process of knocking down its paywalls (in this case, Emap, see: http://www.mediaweek.co.uk/news/bulletin/mediaam/article/861030/?DCMP=EMC-MediaAMBulletin).

    Is there any future for content charging on the web for all but the most specialist of sites?


    James Evelegh
    Editor
    InPublishing
    http://www.inpublishing.co.uk
  •  11-17-2008, 6:41 AM 334 in reply to 332

    Re: Is there a future for content charging

    I believe strongly that there's a big future for website charges - to think anything else implies information will be worthless forever. So, I think a wholesale dropping of charges is a childish idea.

    This kind of decision (Wall St Journal are also doing it) is a kneejerk to not being able to sell much advertising on exisiting paid-for websites. I think there are three main reasons for this - poorly trained and prepared sales teams, poor websites, and low individual page traffic.

    The first two, well, I own't bother talking about them here, but the latter ... The two solutions to it would be to stop selling individual page estate, or to enlarge and enliven the free areas of the site - but without cutting out paying altogether. That is, increase the content in the free offering - a half-way house to freeing all content - but retain the must-have material behind a subscription wall.

    Giving away your information devalues the relationship between brand and consumer, makes them more likely to switch, and ultimately kills the magazine (usually) that spawned the website in the first place.

    This will also leave the media owner dependent on ad revenue. And with us going into a recession, that seems particularly silly. Advertising has been in decline since the 91 recession, and this recession will accelerate that decline.

    Media owners should be seeking instead to add value to information so that it's worth people paying more online.

  •  11-23-2008, 2:02 PM 335 in reply to 334

    Re: Is there a future for content charging

    Well said, Ross, I agree with every word of that.

    This is another example of the publishing industry lacking confidence. I think it's a knee-jerk reaction to a drop in advertising revenue - and the typical publisher reaction to that has always been to find a way - any way - to recover the ad revenue, and hardly ever to look for alternative (and maybe more stable) revenue to replace it.

    This fear of lost ad revenue was always the bane of proposals to convert magazines from free circ to subscription. Shame really, because many free circ magazines deserved to thrive on paid sub revenue, but they were never given the chance and often folded instead.
  •  03-11-2009, 9:32 AM 351 in reply to 332

    Re: Is there a future for content charging

    There's a very lively debate going on about this.  Take a look at brand republic's blog today about whether newspapers should actually put up prices.:
    http://community.brandrepublic.com/blogs/gordons_republic/archive/2009/03/11/how-much-more-would-you-pay-for-your-newspaper.aspx
    I have also posted on my blog posing the question can subscriptions save newspapers
    Be interested in any comments from here.

    Carolyn Morgan
    www.penmaen-media.co.uk
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