I’ll go out on a limb and say it flat out: paywalls are a clear sign that the news publisher doesn’t yet understand digital news revenue and where the industry needs to turn for online profits. And no, “online profits” is not an oxymoron (see my previous posts about John Paton and what you can do to drive plenty of online revenue). Yes, banner network advertising pays out next to nothing. Dumping cheap banner ads is the first thing a publisher should do. But going to paywalls is a mistake. Publishers have rarely derived significant revenue from news consumers; most revenue has been from advertising, and will continue to be. And there is plenty of money to be made in digital advertising, if you are willing to look at how businesses are spending their (growing!) advertising budgets. Let’s think about the paywall model a bit. Pundits (and desperate publishers) like to cite The Wall Street Journal as an example of a paywall that works. Well, unless you are publishing a financial journal, forget about the comparison. Subscribers themselves rarely foot the bill for their WSJ subscriptions: the subscription fees are subsidized. How? Because you can take WSJ as a corporate expense. Heck, you can take it off on your taxes as a business or professional expense (in the US, it’s a legitimate “unreimbursed employee expense” for many people). But who is going to let you put your hometown newspaper (or the New York Times for that matter) on an expense report? It just isn’t a business periodical. Some of us read with interest the story about Piano Media, the initiative where content from all nine news publishers in Slovakia are delivered under one national paywall. (Here is one article about it from Columbia Journalism Review: http://bit.ly/HOgrWW.) Is this a model for the free world? Consider this: if you want news content in your native language, and someone holds a monopoly on all news in your language, then yes, perhaps under these artificial circumstances, a paywall will work: “With all the major newspaper publishers (and one broadcaster) involved and little Slovak-language competition from outside the nation’s borders, readers would seem...
Read MoreCategories
- Digital Marketing (8)
- eLearning (2)
- Future of eBooks (10)
- Future of News (11)
- More Visitors: SEO & SEM (8)
- Newspaper Revenue (3)
- Tablet and Mobile (9)
- Technology & Analytics (6)
Contents:
- Data Preparation for Analytics
- Community Engagement: Moving from Broadcast to Conversations
- Schema.org, Entity Search, and Semantic SEO Tagging
- Responsive Design: One Site for All Devices
- How Mobile Fits Into Your Overall Digital Strategy
- Designing Tablet Reader Apps: Information Architecture
- Designing Tablet Reader Apps: User Experience Design
- Designing Tablet Reader Apps: Content Analysis
- Designing Tablet Reader Apps: Audience and Purpose
- Designing Tablet Reader Apps: More Bells and Fewer Whistles?
- The Work Behind Social Marketing
- Search Engine Marketing (SEM) Tips: Analytics and Performance
- Search Engine Marketing (SEM) Tips: Keyword Management
- Search Engine Marketing (SEM) Tips: Competitive Analysis
- Kids, News, and Video
- Tablets, eBooks, and eLearning Make Middle School Less… Awkward
- Epilogue: The Miranda Proposal, Future and Facts
- The Long Tail of Publishing
- Who Will Develop the Next eBook Platform?
- What is the eBook Platform of Tomorrow?
- The Rise of eBook Applications
- Social Reading: Beyond Gutenberg? Beyond Zuckerberg!
- eBooks and the Triple Bottom Line
- The Future of Books
- Prologue: It’s Time for eBooks to Evolve
- Journatic, The Tribune, and Offshore Outsourced Journalism
- Warren Buffet is No Fool
- The Ultimate News Device: Tablets
- The Future of News: It’s Not About You, It’s About Them
- Newsroom Software: WordPress and Other Open Source Options
- Paywalls: The Wrong Solution for News
- How to Drive Online News Revenue
- Don’t Build Your Own Newsroom
- Digital Editions and Portable News
- Why Photos are Critical to Online News
- Site Analytics: Intelligence Gathering for News Sites
- How To Do SEO Right
- From Newspapers to Digital Media: Follow John Paton
- What is SEO?
- SEO and SEM for News
- Trusted Advertising: The Value of Newspaper Web Sites
- Capitalizing on News Assets
- Where Did Newspapers Go Wrong?
- The Fall of the Newspaper
- Why Blogging Writes?