Still more major media outlets are weighing in on the discussion about paid content, and many are giving credence to the prediction that the era of free online news may indeed be coming to an end.
The latest opinions - which included those from high-profile executives from News Corp., and Warner Bros. - were voiced during the Broadcasting & Cable/Multichannel News 2009 OnScreen Media Summit last week, reports MediaBuyerPlanner.
Free Model Devalues Content
The prevailing view of media companies touting the supposed end of the era is that the free model devalues the content. Hulu is the latest website said to be considering a paid model.
“I think what we need to do is deliver that content to consumers in a way where they will appreciate the value," said News Corp. deputy chairman, president and COO Chase Carey (via Broadcasting & Cable). "Hulu concurs with that; it needs to evolve to have a meaningful subscription model as part of its business."
Warner Bros. chief Barry Meyer agreed, saying that, if carefully executed, “an authentication type of business model can benefit everyone and be an ideal complement to the current broadcast and cable television ecosystem.”
News Corp, Others to Charge
News Corp. has said that all of its news websites plan to charge for content by the middle of 2010.
MediaNews Group, the publisher of 54 daily newspapers including The Denver Post and the Detroit News, also said it will soon be charging a fee for its newspaper content online, while The New York Times Co. chairman Aurthur Sulzberger Jr. told shareholders in April that the company would be “exploring a new online financial strategy.” Meanwhile, Disney plans to experiment with a paid-subscription model online, and Newsday already has erected a pay wall.
Magazines Look at Paid Model Too
In addition to the high-profile subscription-based plans announced by newspapers, many magazines - which already have subscritpion-based print editions - are mulling paid models for online content as well.
Some examples:
- Runner’s World recently launched a marathon training plan for which it is charging a $130 to $250 fee.
- Spin has been making fewer of its features available for free.
- Discover plans to soon make its features available only to paid subscribers or those who pay for digital copies.
- The Economist is working on a paid digital product, which will replicate the print magazine.
- Newsweek said it will begin testing paid content ideas.
Going Elsewhere for Content
A big factor in the fee-based model's success will be whether media will be able to provide compelling and unique enough content that readers will want to pay for, and/or that they cannot find anywhere else.
A recent survey conducted by industry consultants Greg Harmon and Greg Swanson for the American Press Institute found that 51% of magazine and newspaper publishers believe they can successfully charge for content, while 49% either aren’t sure or think paying for content will not work.
The survey also found that 68% of these publishers believe that even if readers object to paying for content, they would have a difficult time finding the information they need in other places. More than half (52%) thought it would be either very easy or somewhat easy for readers to find replacement content elsewhere.
