Leadership Strategy:
The Online Paid Content Debate
Posted on March 18, 2009
Newspaper companies are taking a serious look at whether they should be charging Web users to read the newspaper's valuable online content.
In this series of articles, the Newspaper Association of America takes a look at the debate, analyzes the results of newspapers' paid and free online models, and considers the major factors influencing executives' decisions on whether to charge for online content.
Access the report at www.naa.org/paidcontent.
Zero-Sum Games: Framing the Debate
Many on the pro-pay wall side of the debate say one of the great mistakes the newspaper industry has made has been listening to consultants advising that "information wants to be free." Those on the con side of the debate feel they have been telling the newspaper industry for years that there has to be a fundamental change in the way newspapers do business.
Corporate Calculus
When newspaper executives consider the paid content debate, the most important factors they weigh up are how it will affect Web traffic and if they can persuade people to pay for access their information.
Free Content Advocates Focus on Growth Potential
U.S. newspapers, such as the Tulsa World and Cedar Rapids Gazette, that have tested a paid online news model only to later remove the pay wall was ultimately inhibiting online revenue and traffic growth.
Paid Model Advocates Stress Value of Content
Ask newspaper executives whose Web sites charge for access to information why they've chosen a paid model, and you'll get a laundry list of reasons-all topped by the belief that newspaper content is too valuable to give away.