The Pay Wall Minority
Posted: September 14, 2009 Filed under: Department of Digital, Department of Print | Tags: don't build the wall Leave a comment »I have made a lot of philosophical arguments about the pay wall in the past. At the heart of those is the fact that restricting access to news, information, content and valuable local resources that are inherent within print institutions, to me, seems like a contradiction of what is the reason for a free press: increasing the marketplace of public discourse.
I am in fact talking about the “liberty” version of free, in this sense, not the cost kind. I just want to be clear about exactly where I drawn the line when it comes to journalists. I believe there is a very important aspect of news, but I also recognize that it should not be reduced to a basic public service and that its authors have a right to make a living off of sharing information.
With those two waivers out of the way, here is the evidence of the day regarding the problem with building a pay wall around that same content these journalists produce.
First, there is a nice long form piece (with the accompanying video) over on CBS from over the weekend that looks at the implications asking if readers will ever pay for news. Outlining the different proposals on the table, CBS noted this important consideration for a paid system of online news:
The ability to decide the criteria to charge readers and not others. This goes well beyond the simple basic vs. premium concept. At some point, usage intensity will have to be factored in. That means the first taste is free but you must pay if you keep coming back. Weirdly, all the papers I’m reading on the subject don’t do much to explore this notion. Yet, it is crucial to readership segmentation.
While this looks at a lot of the ways content may be put behind the wall, it doesn’t necessarily answer the own question posed in its headline. The variety of models and methods proposed doesn’t necessarily get over the elephant in the room that consumers may just not pay regardless of what custom options they have.
This isn’t anything alarming, if you ask me. I have been one to argue that there will always be some way to get to the information (and many of it will likely continue in the two-step flow idea; someone will pay for it, and then they become the hub of their social circle of news as they pass it around). I was surprised to see that there may actually be hesitance from the other side of the aisle (the bold is mine):
A bare 51% of the newspaper publishers in the United States believe they can charge successfully for access to their interactive content, according to a survey released today. The other 49% of publishers either fear that pay walls will fail or just aren’t sure. The survey, which was conducted for the latest in the series of industry conferences this year studyng how to monetize the valuable content most newspapers give away for free, shows that publishers who are worried about charging for content have good reason to be concerned. While 68% of the publishers responding to the survey said they thought readers who objected to paying for content would have a difficult time replacing the information they get from newspaper websites, 52% of polled readers said it would be either “very easy” or “somewhat easy” to do so.
Add that to the fact that barely two-thirds of these publishers think that the pay wall would keep non-payers out of their content – given the hopes for this method of saving the “news” – I consider this to be a low response.
This is the ultimate zero-sum game. All you need is one publisher to keep the wall open (remember David Simon’s CJR rant that it was all or nothing?) and it won’t work. If publishers can’t universally agree on a wall, than they must universally agree to find a better method of finding ways to earn the needed funds to pay their journalists. The smartest journalists will not only be those who produce the best content, but also find the solution at the bottom of the barrel that will help them become their own foundation.
The 17 Theses of Online Media
Posted: September 9, 2009 Filed under: Department of Digital, journalism | Tags: future of journalism, The Internet Manifesto Leave a comment »In just the last two days, the work of 15 German bloggers has been promoted and translated into seven different languages. It’s a short, to-the-point, brilliant way of thinking about the very different rules that cover the user-generated media of the Internet. These bloggers, as noted by one of the contributors, Janko Roettgers, in a post on GigaOm, put together this to publish and embrace 17 declarations about the future of media production online:
“At the core of the text is the claim that the Internet is a different medium with a disparate social and cultural impact than traditional mass media, and that publishers need to acknowledge these differences, rather than pretending they don’t exist or trying to make them go away.”
Sure, it’s about 78 points short and roughly 490 years off the mark, but this is our equivalent of a Church door, and these are the really smart declarations they agreed upon. And there’s definitely a recurring theme across the seventeen points:
The rules of the Internet—the governing principles and perceived credibility—are created by the audience, and that audience is a pushing force of content, not a passive, receiving audience like those of old.
The Internet is free (as in the speech kind of way), it’s accessible, and it is nearly universal as a communication platform. Ultimately, that centers itself on the idea that the starting point of the online community is a nice horizontal floor, not a high hurdle to be overcome for inclusion.
My favorite example of how this community works is the comments on the English version of the post. Everything from critiques on the “German Internet” through the volunteerism to translate it into more languages. Everyone has an opinion. The silver bullet of the Internet is that we have the means to express them. It’s a dangerous world to try and regulate that in favor of saving how things used to be.
I’ll give the last word back to these smart folks from the continent, but seriously take a minute and read the whole thing.
12. Tradition is not a business model.
Money can be made on the Internet with journalistic content. There are many examples of this today already. Yet because the Internet is fiercely competitive, business models have to be adapted to the structure of the net. No one should try to abscond from this essential adaptation through policy-making geared to preserving the status quo. Journalism needs open competition for the best refinancing solutions on the net, along with the courage to invest in the multifaceted implementation of these solutions.
Perception [Today in Infographics]
Posted: September 8, 2009 Filed under: journalism | Tags: bloggers v. journalists, perception Leave a comment »Take a minute and read through all of C.W. Anderson’s excellent analysis of the perception of the role of news organizations. In the meantime, just enjoy this chart:
When Media Shares Audiences
Posted: September 3, 2009 Filed under: Department of Broadcast | Tags: Nielsen, Simultaneous Usage, Tweet-Peats Leave a comment »One area where print and broadcast will always differ is in the duration of its consumption. While the heart of the newspaper industry is still news, there is enough entertainment and original programming to drive advertising revenue and support the journalistic efforts.
YouTube was never going to have the same effect on prime time that the print folks tell you the news aggregators have on their effort – no matter what Viacom tells you. Still, the corps moved quickly to adapt by offering video through their own properties or intelligent partnerships and projects.
And, as Nielsen research from earlier this week shows, even though the digital video audience is growing – 70 percent growth in people watching some video on mobile, and a 46 percent increase in those who watched on the Internet – our TV viewing habits still rule. The study shows those trends to be at an all time high of 141 hours per month.
That divide is probably unconquerable – Internet time isn’t always spent with video, even if it is one of the most popular activities online. Also, when you consumer video in 1-2 minute chunks, it adds up a lot slower than 26 minute sitcoms. There may be one other factor, also shown in this research, and it also speaks to a different advantage (other than embracing digital) that broadcast has over print.
Looking at Nielsen’s convergence research panel, June results show that 57% of consumers simultaneously watch TV and go online at least once a month. An estimated 130 million used TV and the Internet at the same time at least once during June. Nielsen says the average time spent doing this was two hours and 39 minutes.
Broadcast can work as a complement to online media; it’s hard to read a newspaper and surf the Web, and its counterproductive since you can search the newspaper ON the Web. The rate of growth of simultaneous consumption is higher than adoption of Internet video and that’s not to be laughed at.
If you want to take it a step further, I’ll even give Twitter and other status-based elements of social networks like Facebook a lot of credit for making this happen. Major media events dominate the trending topics and news feeds of these services – and the range is incredibly large to include everything from Iranian civil unrest to Tennis to Glee. And, in the case of the last one, Fox is even encouraging it.
The thesis of this post is not that rising levels of digital consumption have an inverse effect on print while a direct effect on broadcast. That can’t be explained through one study. But it is worth noting that there are methods to move a story and an audience from one medium to another without boxing them in.
Can print act like a startup?
Posted: September 1, 2009 Filed under: Department of Print | Tags: don't build the wall, free, future of print 1 Comment »A post by Om Malik this morning has me contemplating an idea that I realize no one who can make the decisions will buy into, but it’s worth considering: As a long-standing, institution can you look at yourself in the mirror, determine that you need to reinvent yourself and say, “Maybe it’s time to act like a startup?”
The inspiration from this comes a little from Om’s really helpful advice on making a freemium model work for a startup company. Pulling on examples like Evernote, Remember the Note and Flickr, the focus is on how to make money off of something for free. First, give a loss-leading service away for nothing (say, access to music, a simple repository for anything), but then set some sort of bar or restraint to where it requires an investment. On Pandora, it’s a certain number of free music hours each month; on Flickr, limited file types and storage. Then the meter starts, and usually it takes away the advertisements often served on free services.
This is the exact opposite thinking of a print newspaper. Subscriptions are relatively cheap, but its support is still the department store ads and what’s left of classifieds (read: not much). If you want to adapt, you can’t think like the print beast that has audience stats they want to sell for placements.
The other lesson is don’t try to make the for sale item the exact same as what is currently free. Don’t build a wall around what exists – use that as a carrot into a new garden of content. This is where the success lies in the freemium experiment. The no-cost buy in turns into a necessity. In Om’s case, it turned into a reason to stay with a certain service:
A few weeks ago I decided to move all my data from Dropbox to another online service, Jungledisk. The reason: I wanted to archive all my folders and information from 2008, for which I needed more storage than my current Dropbox account could offer. It was about 45 GB of data, which meant I’d have to upload it to Jungledisk, and even with a really fast connection, it would take forever. Suddenly it dawned on me that the more stuff I put on Dropbox, the more difficult it would become for me to switch to another service. Instead, I upgraded to 100 Gb a year.
So it isn’t building a wall – it’s more like a picket-fence. You can see a little bit of the light through it, and for many people, that’s enough of a peek at what’s on the other side. The business will come from those who want to look at all of the space you have to offer, and that means that if you make it lush, unique and necessary, they will.
It’s up to newspapers to stop thinking they can charge for what has been available. It’s really about finding what the incentive is beyond just what the audience has already enjoyed. This goes against everything you thought for the last century. Tough. Sometimes you have to adapt – because the advertisers are going elsewhere. Make the content the service, not a frame for ads and there is success to be had.


This lack of permanency has its place in reporting and breaking news, but not in telling the whole story and certainly not in lasting impressions and legitimate news sharing.
![Perceptions [Today in Infographics]](http://www.niemanlab.org/images/4djournoperceptions.png)





