Date

Sat - 18.11.2017


business model

The Times Online and Sunday Times last week began charging for online content, and publishers around the world are eager to see if the UK newspapers' efforts are successful.

However, according to a new Forrester study, instead of asking how much they can make from the content, companies, should be focusing on "how that content can help create new revenue streams," analyst Nick Thomas wrote in his Forrester blog.

Image: Francesco Rachello

"The value in a media business lies in its dialogue with consumerism," Thomas wrote. "If a paywall removes 90% of your audience (as Sunday Times editor John Witherow has suggested -- and even that may be an underestimate), the challenge becomes even harder. Focusing on the sale of content is missing a trick: Media companies are not actually in the content business; they are in the audience business," he added.

The percentage of readers who will switch to the paywall model is not yet clear, but plenty of evidence shows that consumers spend money online on products and services. For example, online news fans tend to buy books, tickets, travel, or clothing online more than average online users.

Author

Erina Lin

Date

2010-07-08 23:44

Canada's national news service is considering switching from an industry cooperative to a for-profit company.

Under the new set-up, The Canadian Press would be owned by its three largest members: Torstar Corp., Gesca and CTVglobemedia, The Globe and Mail (owned by the latter) reported. The deal still needs to receive federal approvals.

Spurred by increasing financial difficulties, the 93-year-old organisation has been discussing a restructuring so that it will not have to depend on members to help pay operating costs.

Two of the news service's largest members recently dropped out of the cooperative. CanWest Global Communications Corp., which dropped its subscription in 2007 in favour of its own newswire, CanWest News Service. In 2009, Sun Media Corp. announced it would leave the CP, and Quebecor Inc., which owns Sun Media, is also considering switching to a news-sharing service of its own, according to The Globe and Mail.

Author

Leah McBride Mensching

Date

2010-07-05 21:56

Bloomberg News is doing things a little differently. In stark contrast to media heavyweights such as the Wall Street Journal, The Times of London and The New York Times, Bloomberg has launched a fresh version of its business news website supported solely by ads rather than subscription fees.

A free-content approach to news provision would seem to be a departure from the company's traditional revenue model which revolves around selling subscriptions to its Bloomberg Terminals data feeds at the price of $1,500/month.

For more on this story visit our sister publication, editorsweblog.org.

Author

Leah McBride Mensching

Date

2010-06-22 22:07

Newspapers in developed nations are generally facing steeper declines in advertising revenues, titles and circulations than their counterparts in more developing countries, a new report from the Organisation for Economic Co-operation and Development shows.

The Paris-based think tank said overall, however, the industry is finding new sources of revenue, while publishers in developing countries are continuing to grow their readership numbers, Canwest News service reported today. The report, "The Future of News and the Internet," examines the news business in 31 OECD member countries.

Chart: OECD (click on chart to enlarge)
In some of these countries, more than 50 percent read newspapers online (in Korea that number is 77 percent), but at the very least, 20 percent read online newspapers, the report states. However, willingness to pay for news online "remains low." And the share of people getting their news from online-only sources is expected to "grow rapidly with new generations who start using the Internet early in life. The real concern is that a significant proportion of young people are not reading conventional news at all."

Author

Leah McBride Mensching

Date

2010-06-14 19:52

In a speech he's scheduled to deliver on Thursday to the West Midlands' CBI, the former editor of Trinity Mirror's Birmingham Post will explain why he thinks the news business is having financial difficulty, and why paid online content isn't the answer newspapers are looking for, paidContent UK reported today.

"I spent the last 15 years of my newspaper career regularly attending industry conferences in which the threats and opportunities of the internet were endlessly discussed and analysed. Pretty much everything that has come to pass was predicted, but what did the big newspaper groups do? Very little that was right, it turns out," Marc Reeves writes in his speech.

Reeves took a redundancy offer last year, and is now a digital publisher and media consultant.

People are less likely to pay for online content because they feel they've already bought the delivery channel - the computer - "so why should they add to the burden by paying for content that is available elsewhere for free?"

Author

Leah McBride Mensching

Date

2010-06-07 20:34

Fairfax Media has hired external consultants Bain & Co. to evaluate its medium-term growth strategy, but some industry watchers say they thing the move will only further delay implementing new strategies, The Australian reported yesterday.

The strategy also includes a proposal that would give control of the group's flagship Web sites, currently managed by Fairfax Digital Chief Executive Jack Matthews, back to their print sides. The group's flagship titles include The Sydney Morning Herald and The Age.

"The transfer of management of the flagship websites to the print business would represent a significant loss of influence in Fairfax for Mr Matthews and the digital division," The Australian report stated.

Meanwhile, Fairfax was among the first news outlets to create apps for the iPad, The Sydney Morning Herald reported. The SMH and The Age e-edition apps will include all the same sections found in print newspapers, and will enable readers to flip through pages.

Author

Leah McBride Mensching

Date

2010-06-01 23:09

The "will it or won't it" debate surrounding whether the iPad will "save" the newspaper industry has been going on since news of its possible existence in Apple's labs surfaced last year. It is still being discussed today, as the iPad is launched in some European countries, Japan, Canada and Australia.

Although other tablet computers, such as Amazon's Kindle, have been on the market for years, they have been mostly focused on reading books in black and white, with few other features or capabilities. The iPad is unique because it creates a new market segment in the gap between laptops and mobiles, CNN blogs noted today.

The new segment created by the iPad gives newspapers a chance to start fresh with readers, many believe, enabling them to charge for their content, a move many wish they would have had the foresight to do in the early days of the Internet. It also creates a new level of interactivity for both content and advertisements, allowing news publishers to give users a more enriched experience in exchange.

Author

Leah McBride Mensching

Date

2010-05-28 18:17

The economics of online journalism say that the more page views, the better, which many say can endanger important news that may be overlooked because it won't drive traffic. But as online ad revenues aren't adding up fast enough for many newspapers around the globe and paywalls and premium content offerings continue to go up, from the Nikkei in Japan to Le Monde in France, could the tide be turning in favour of this type of reporting?

"The management shouldn't be following but trying to anticipate the changing economics of online journalism," writes Silicon Valley Watcher blogger Tom Foremski, a former Financial Times journalist. "The dirty little secret of journalism's focus on page views is that the value of each page view is decreasing, because the value of online advertising is decreasing. This means it's a strategy that will likely lead to failure. Media organizations need to adopt a multi-revenue business model, or what I call a Heinz 57 model."

So if newspapers create paid content offerings, whether they're behind complete paywalls, a freemium model or partial paywall, quality journalism may win the day at traditional news outlets.

Author

Leah McBride Mensching

Date

2010-05-26 21:01

Unlike Murdoch, Guardian's editor-in-chief, Alan Rusbridger, has ruled out the idea of erecting a paywall around the newspaper's Web site. Since paid online content is not going to be a source of revenue anytime soon, Guardian News & Media is launching two new strategies to complement the paper's revenue stream, according to paidContent.

First up, Guardian will be launching a membership club scheme it announced last year, one that will resemble the Times+ initiative.

For more on this story visit our sister publication, editorsweblog.org.

Author

Leah McBride Mensching

Date

2010-05-20 22:47

Magazine publishers are finding new ways to connect with readers through Facebook by giving them an opportunity to read content and subscribe without leaving the social networking site, AdAge reported last week.

Until recently, companies have widely used Facebook to direct traffic to external Web sites. But coming in July or August, with the introduction of a new system being developed by e-commerce application development company Alvenda and Time Inc.'s subscription division, called Synapse, users will be able to access magazine content integrated in the Facebook news feeds as blurbs. Users will be able to expand the blurbs in order to read the full story and ads will appear along with the story on Facebook itself, without being redirected to an external link.
Users will also be able to subscribe to magazines of their choice within Facebook.

"Consumers don't want to leave where they are on the web, wherever they are," Alix Hart, VP for online marketing at Synapse, told AdAge. "Facebook is a place where we think that over the coming year there are going to be more and more opportunities to present magazine offers in a really relevant way to consumers, as they're starting to share magazine content in a much deeper way than ever before."

This new system also presents an alternative revenue maximising opportunity for publishers by integrating magazine content along with ads on readers' news feeds to grab maximum reach.

Author

Savita Sauvin

Date

2010-05-17 22:12

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