- July 21st, 2014, 9:13 pm
#457619
This thread has "derailed." But on that note, the newspaper challenge is an interesting one. Unfortunately, users have become used to free content from newspapers on the web over the years. There have been many experiments with paywalls since the reality struck in but it seems the best way to do it is allow limited access for free and premium access to subscribers.
Back in California i knew many in the newspaper industry and one of the biggest mistakes they made in understanding the online world was assuming that online readers were freeloaders. First of all, business online is much more complicated. There are many websites that thrive online with no subscription fee. The challenge is that unless you are the New York Times or WSJ you are only broadcasting to a local audience, which makes online ad revenue more of a challenge for a business like N&R. The other issue (elephant in the room) is that many successful online sites are able to operate with very little infrastructure compared to a business that is printing out papers as well. In the future, I think there will be even more consolidation in traditional newsprint in order to save production costs.
Anyways, to assume that people who are visiting the site are adding nothing to the bottom line speaks more of the paper's online business plan than of the users that go there. I probably visit the N&R site once a week or so and have clicked on some of the advertising links, since they were targeted for me. If N&R is giving those ads away for free and don't get anything for me clicking on them, that's a marketing/advertising problem.
The time when things like this are most successful is when you are able to increase the value of the product while charging a fee. This will help convince the consumer that they aren't paying for the same thing they used to get free. If value is added, it may be an easier pill to swallow.
I was good friends with the publisher and several editors of a paper out in California. A few years ago, they were mandated to put up a paywall by the owner. When this happened, their comment section went from 100+ comments on big stories to 0. Sharing of their stories on Facebook went from a common occurrence to never. I don't know what their online numbers looked like but as someone who had access I can say that it appeared they weren't getting much volume at all. After about a year and a half they had to move to a freemium model where everyone had free limited access and you had to subscribe for continued, regular access. I believe they kept some things like emergency stories and obituaries free for everyone. Once they adopted this model, they started to see an increase in online traffic again.
From talking with local business owners etc, the paywall made them less willing to buy online advertising because they knew that traffic had gone down and rates weren't being lowered to reflect this. It will be interesting to see how this plays out.
Hope all goes well for N&R.