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.