News Corporation announced this week that it would be delaying the move to implement paid for content within its online news sites, which was originally intended for a June 2010 launch. Reasons for the delay consisted of falling profits for the year, and having a clear process for implementing the paywall system for the service.
http://www.brandrepublic.com/Discipline/Media/News/964397/Murdoch-reveals-delay-switch-paid-for-content/
News Corp stated that they are currently working on a trial website that would include content from the Sunday Times, however a date for this release was not provided.
In the same week The New York Times announced that a decision would be made within weeks regarding an introduction of paid for content within their news sites. The issue was supposed to be settled in the summer, however the decision to charge users for content was not as clear cut as originally thought, and a general agreement within the company has not yet been made. Bill Keller, the executive editor stated, "There is no clear consensus on the right way to go"
http://www.brandrepublic.com/News/949951/New-York-Times-wrestles-online-charge-method/?DCMP=ILC-SEARCH
No doubt we’ll see some kind of paid subscription news service in the future, as it’s becoming clear that publishers aren’t generating enough revenue from the current advertising model.
However, how can companies assure users that the content they pay for is premium? Consumers aren’t going to pay for blogs and articles that can be sourced from a different site for free. How are these publishers going to make this model work?
The reality is, until corporations ensure that paid for content is valuable and exclusive, consumers aren’t going to participate in subscriptions.
If you’d like to know more about digital, email me at nickb@polestarcommunications.com
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