Can Newspapers Survive if they Give their Content Away for Free?

by Lawrence Ampofo 4/8/2009 6:44:00 PM

Debate surrounding the free provision of free online news content has once again come to the fore. Google CEO Eric Schmidt suggested that newspapers need to creatively innovate with new technologies in order to survive.

Schmidt’s remarks are a clear affront to recent the comments made by Rupert Murdoch at The Cable Show conference in Washington D.C. in which he stated that

"people are used to reading everything on the net for free, and that's going to have to change.

Others, such as Robert Thompson of the Wall Street Journal, were even more scathing in their assessment of the availability of free content on the Web, claiming that news aggregators are

“parasites…tech tapeworms in the intestines of the internet.

Murdoch and others who share his sentiments take issue with the fact that news aggregators obtain a large share of the advertising revenue from newspapers by linking to newspaper articles, while the newspapers themselves earn comparatively little. Murdoch therefore argued that content providers should charge for their product if their businesses are to survive.

This line of argument is worrisome for a number of reasons, not least the fact that a two-tiered Web would be created where only those wealthy enough to afford subscription fees would be able to access content which they can currently access free of charge. Another point worth considering is that an industry-wide introduction of subscription fees would surely impact on readership figures as a significant number of consumers would question whether particular content was indeed worth paying for.

Murdoch’s complaint is something we’ve debated a number of times on Measurement Matters.  Questions abound as to whether it would necessarily be good for the industry if content providers were to introduce subscription fees.

Arguably, it would be much better if newspapers followed the lead set by The Guardian by using technology to its advantage and make their content align more closely in line with the demands of their consumer base whilst simultaneously making a healthy profit. 

Future of the news poll: The results!

by Paul 12/3/2008 9:42:00 AM
Over the past month we have been asking you, the readers of Measurement Matters, to get involved in our poll on the future of the news. Thanks to all who voted and commented, there were some interesting perspectives shared. And now (drumroll please) the results...

 

 



Responses to the first question showed a strong attachment to the national print press, as over half of respondents think there will always be demand for a print version. Of course, there is an assumption that this demand will be met by publishers, which may not necessarily be the case given falling revenues and a wider pool of competition. Only three of the four options given were chosen, with no one of the opinion that national papers will follow the Christian Science Monitor's lead and go online only within the next two years.

 

 

 

Echoing the results of question 1, no participant believes regional papers will be online only within the next two years either. However, only a third of respondents believe we will always have a print version of regional papers. Almost a third expect regional papers to go online only within five years reflecting the dire financial predicament regional publishers currently face. 

 

 

 

 

The thrid question asked where people expect to source their news in the future. Almost two-thirds of Measurement Matters readers still expect to use established media brands, like the BBC and Wall St journal, to receive their news. These big media providers have a strong position to work from and how they continue to develop and integrate their brand with online and mobile technologies will be crucial to their future success or failure.   

This poll has now closed but you can continue to take part in the future of news discussion through Paul Hender's new post on News 2.0

 

Using new media to respond to customer feedback

by Thane 3/18/2008 11:16:00 AM

When I was doing public affairs for Patagonia during the 1990s, we were under constant bombardment by consumers not pleased with our strong stances on social and environmental issues.  I had bomb threats, death threats and people picketing the building.  Back then, I looked to the press for damage control of my corporate reputation, not my corporate blog.  How times have changed.  Now, companies need to keep a close eye on social media to impact their brand, bottom line and even employee relations. 

Being nimble, adaptable and agile is not just for upstart companies.  It works just as well with those who built their brands largely on 'old media'.  The Wall Street Journal has a recent article on the basic strategies available to companies for addressing negative customer and employee-generated content on the Web.  As the article reveals, even a small investment in creating forums for employees and customers can pay big dividends.  Read how established brands such as Proctor & Gamble and McDonald's are building buzz about their brands while creating key feedback loops, without forgetting what built their businesses in the first place. 

I'll take detergent gripes over death threats any day.

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