In a week where the Guardian Media Group was reported to be considering closing down its (and the UK’s first) Sunday newspaper, the Observer, as part of a strategic company review, Rupert Murdoch announced that News International was going ahead with plans to charge for content on all their newspaper websites.
According to Murdoch “Quality journalism is not cheap, and an industry that gives away its content is simply cannibalising its ability to produce good reporting.” Ex journalist and creator of the Wire David Simon agrees. He told the Independent that last 10 years of giving away the content for free has been “destroying an elemental civic good in the name of technology, rather than hinging the technology to an elemental civic good. There’s nothing free about sending reporters to Fallujah or to cover the congress in Washington.”
Of course, many people would laugh at talk of quality journalism from the publisher of the Sun and the News of the World.
Why would people not just move to sites – whether other newspapers or sites such as the BBC - where the news was still free? Murdoch said News Corp would simply make its content “better and differentiate it from other people”.
Better and Different
The problem of course is that ‘news’ is just that, news. Am I going to pay for the Times’ report on an event that happened that is being reported by everyone else – including the BBC, ITN etc – and that is available freely on those sites? Probably not, why would I – unless it is adding something new. If the question is paying for comment, good investigative journalism, or something I can’t get anywhere else, then I might think about it, but there isn’t much of that about.
You need to already have content that people put a value on.
The FT has succeeded in its charging because it is a niche product, and one valued in big organisations – such as the one I work for – as well as by the man in the street [by the way, I never have found that man or that street, and I have looked]. Likewise, the Wall Street Journal has a similar brand and audience, which again has made its charging model also seem to work. But for more mainstream press?
I’m going to be interested how The Times, The Sun and The News of the World are now going to start to contain better content that differentiates their content from what is on everyone else’s sites/publications. At the moment, I just don’t see it.
I believe the only way you can charge for access to ‘news’ is to have something that already has perceived value to the wider public – as shown with the FT. For example ,the Guardian could probably get away with charging for access to Media Guardian content, because that part of the paper already has value to a great number of people, built up over a number of years, so much so that people who might not buy the Guardian on other days of the week will buy it on a Monday or register on the website to access that content online.
Counting the cost
So how’s it going to work?
There doesn’t seem to be any information of the approach Murdoch’s papers will take. Will there be an annual or monthly subscription model? A micropayment model to buy one off access to certain items? A mixture of both perhaps? Also at what level will these costs be at ?? Get this wrong and it doesn’t matter how good your content is.
Hard copy newspapers already sell at low cost (The cover prices of The Sun is 20p and The Times 90p) and these themselves have been cannibalised – especially in the main cities of the UK – by freebie newspapers – Metro and City Am in the morning and London Lite and The London Paper – published, of course, by one News International – in the afternoon/evening. It does seem odd that a man who is so keen to give his content away for free in London in hardcopy print is suddenly in a hurry to charge people for that content online.
So if we take The Sun, if you bought The Sun in hard copy every day you’d be spending 20p a day Monday – Friday (and, I think slightly more around 65p ? on a Saturday). The exact numbers don’t really matter, but in this case a dedicated Sun reader would be paying out £85.80 a year to read the print copy of the paper. Will News International be looking for a similar outlay to access their online content? Will its fans think £7.15 a month is a good deal?
Another consideration for cost must be the potential for losing more ad revenue using a pay model. If less people are going to be seeing content then surely advertisers will be less inclined to advertise – unless they see value in a certain audience. Again with the FT you have a pretty good chance of having an easily identifiable demographic – but for other papers? It has to be more fragmented.
So, will the numbers add up? Will the revenues generated from online subscribers offset loses elsewhere ?? Will it succeed and herald the dawning of a new age or will it be a spectacular failure?
The mobile game
For publishers looking at how to present their data in a mobile payworld, they should look no further than the FT’s iPhone app. This is a thing of beauty. This is especially true if you compare it, for example, to the Independent’s iPhone app, which whilst perfectly serviceable just feels – and acts - like an rss reader, and is lacking an Identity: once the app is loaded you could really be reading anyone’s content. By contrast the FT app replicates the key aspects of the FT.com site and you are never in any doubt about where you are or where the content is coming from.
Casual Observer
Back with the Observer story. The loss of the Observer would be a very sad day for the newspaper industry, although it has for a long time now been a paper that loses money. Apart from killing if off entirely there are also option of continuing to publish it but in a slimmed-down format (whatever that might be) or turn it into a weekly news magazine – a daft idea.
One problem for the Observer and indeed the Sunday broadsheets as a whole is that now Saturday’s papers are so big, that people often just make do with Saturday’s Guardian or Telegraph and don’t see the need for a Sunday paper. I’ve been as guilty of this as anyone, and I’m someone that still buys a newspaper every day mon-sat. When I do venture out on a Sunday it is the Observer that I buy. And if I need to start buying it every week again to help it survive , then I guess I’m just going to have to start doing my bit the preserve the old thing. You should to.
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