But is the Times plan to charge for online news really as bad as it sounds?
From June this year, TimesOnline (currently a free news website) will become two separate sites: the Times and Sunday Times accessible only to paying subscribers. The traditional newspaper market is in freefall and the move to charge directly for subscription to news is seen by many as a pivotal moment in the industry’s history.
In the 15 short years we’ve had the internet in our homes, we’ve become very used to consuming free content and somewhere near the top of the list has been news. It’s hard enough to market and sell content online as it is but the idea of trying to sell something that’s always been free comes across as madness.
The conviction behind this move is clearly that the paid subscription model will be more profitable than the current ‘ad-supported’ model. What you and I have to remember is that the number of people likely (in the future) to buy this kind of subscription is unknown; while the profitability of the current method of monetisation is a known quantity. I suspect that this means quite simply that, right now, it’s not working in paper and it’s not working in ad revenues either. If that’s the case, what we’re seeing is the newspaper industry’s last gasp. As desperate, as unrealistic or as hopeful as it may seem, if it’s the only option left to try, then it’s no surprise to see them trying it.
The great myth of the internet is that the ‘ad-supported’ model works – and I don’t think it does. It’s just a hunch based on my own day to day experiences. Think about it: in all your free content consumption, how many ads have you clicked on? How many products or services have you bought as a result? Like me, I suspect the answer is virtually none.
And maybe Murdoch’s idea isn’t so mad after all. The dream of monetisation through ad revenue led to an explosion of low-grade, financially-motivated content which has, arguably, degraded the quality of online information. Maybe the option to pay for quality that stands out from the mediocre is going to look increasingly attractive as time goes by.
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