Subscribe free to our newsletters via your
. GPS News .




INTERNET SPACE
News 'paywalls' grow, but analysts split on merit
by Staff Writers
Washington (AFP) Dec 9, 2012


The free lunch for digital access to most US newspapers is disappearing but paywalls seem at best a partial answer to the industry's woes and analysts are split on the decision to block out readers.

More than 300 US dailies now have some type of paywall, many allowing some free or "metered" content, according to the trade website News & Tech.

The Washington Post, one of the last major US newspapers to offer its content free of charge online, will likely begin a metered paywall next year, according to sources quoted by the daily.

Big newspaper groups including McClatchy have begun implementing paywalls at their dailies, along with Gannett, which has paid subscriptions for most of its local papers but not for its flagship daily, USA Today.

Paywalls may work best at newspapers with unique content such as The New York Times, which offers comprehensive global coverage, and The Wall Street Journal and Financial Times, the world's leading business dailies.

But Alan Mutter, a former Chicago and San Francisco newspaper editor who now consults on media ventures involving journalism and technology, said paywalls are not a universal solution and could even backfire.

"It won't solve newspapers' problems -- it's palliative," he said, noting the industry has lost $13 in print revenue for every $1 of digital revenue gained.

"It's a wall keeping people out, and it's not strategically wise when they need to be growing their audience."

At best, Mutter said, newspapers can gain a modest income from paywalls, and be able to count digital subscribers for advertising purposes, even if these are already print subscribers.

With the industry still looking for its silver bullet, publishers must find more creative strategies to reach the younger audiences favored by advertisers.

"They need to create new products that resonate with 20-somethings and 40-somethings," Mutter added.

Dean Starkman of the Columbia Journalism Review, however, contends that the Washington Post's likely paywall is "a very good and long overdue move."

"The paper has become the American newspaper industry's poster child for the folly of clinging to a free digital strategy," Starkman recently wrote.

Billionaire Warren Buffett, whose Berkshire Hathaway company has been buying up newspaper titles, sees paywalls as key to new revenues and said in June that the free model for online news is "unsustainable."

Media analyst Ken Doctor, of the research firm Outsell, said paywalls have been successful at most newspapers and predicts that at least 400 US titles will erect content barriers by the end of 2013.

"It is the most positive change in newspaper economics in the last five years," Doctor said, noting that companies in Europe and Asia are following a similar strategy.

He also believes the Washington Post can benefit from a paywall because it covers the DC area "more broadly and deeply than any other news organization," offering content that can't be found on aggregators such as Google and Yahoo!

But Doctor said the most successful digital subscriptions are those that are integrated with a newspaper's print edition, illustrating the dilemma of the Internet for their business model.

When a paywall is imposed, he said "people become less likely to drop their print subscription" and a newspaper can offer a print edition, digital access on PCs and use of mobile apps for a single subscription fee.

But Mutter said that with paywalls going up at many newspapers, it will become difficult for a newspaper such as the Washington Post to differentiate itself.

"If I already subscribe to the New York Times and Wall Street Journal, will I also subscribe to the Washington Post?" he said.

One answer to the conundrum may come from Slovakia, where a startup called Piano Media has organized newspapers for a combined digital subscription, so readers don't have to choose among publications.

After starting in Slovakia in 2011, the company quickly expanded into Slovenia and then Poland.

"We recognized that publishers in bigger markets were equally desperate to find ways to monetize content with technology that was both efficient and secure," said David Brauchli, a spokesman for Piano who happens also to be the brother of outgoing Washington Post editor Marcus Brauchli.

"Readers have been receptive. Our system works," he added.

.


Related Links
Satellite-based Internet technologies






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle








INTERNET SPACE
Microsoft, Google in catfight over online shopping
Washington (AFP) Dec 2, 2012
Just in time for the holidays, Microsoft and Google have become embroiled in a bitter dispute over who is the fairest of them all for online shopping, stepping up the battle between the tech giants. Microsoft threw the first punch when it launched a campaign for its Bing search engine "to highlight Bing's commitment to honest search results." The campaign also seeks "to help explain to c ... read more


INTERNET SPACE
Invasive grass fuels increased fire activity in the West

Prioritizing rather than canvassing entire plant genome may lead to improved crops

Discovery of 100 million-year-old regions of DNA shows short cut to crop science advances

Housing Sales Data Used to Estimate Value of Urban Natural Resources

INTERNET SPACE
New '4-D' transistor is preview of future computers

Ames Laboratory scientists develop indium-free organic light-emitting diodes

Research discovery could revolutionise semiconductor manufacture

Engineers pave the way towards 3D printing of personal electronics

INTERNET SPACE
Chinese in talks to buy aircraft leaser ILFC

Australia retires H-variant C-130 Hercules

F-35 Lightning II Program Surpasses 5,000 Flight Hours

China Southern to buy 10 A330-300 aircraft

INTERNET SPACE
Work on automatic control of driverless vehicles through intersections receives recognition

GM says China car sales on track for record 2012

Volvo eyes 'no-death' goal in its new cars by 2020

Russia demands answers after 190 km traffic jam

INTERNET SPACE
Groupon surges on takeover chatter

Mercosur puts a brave front on divisions

Chinese insurer PICC soars on Hong Kong debut

Hong Kong leader warns of talent drain over housing

INTERNET SPACE
World's biggest, oldest trees are dying: research

'Come out of the forest' to save the trees

Canopy structure more important to climate than leaf nitrogen levels

Ash dieback poses threat

INTERNET SPACE
URI oceanography student uses crashing waves on shorelines to study Earth's interior

Raytheon technology instrumental in creating "Black Marble" image

New test adds to scientists' understanding of Earth's history, resources

Carnegie debuts revolutionary biosphere mapping capability at AGU

INTERNET SPACE
Nature Materials Study: Boosting Heat Transfer With Nanoglue

New optical tweezers trap specimens just a few nanometers across

How 'transparent' is graphene?

A graphene nanotube hybrid




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement