Buy a Daily Newspaper by the Day
November 18, 2009
I read the Guardian’s report about the London Times’s method of monetizing the information in the newspaper. The idea is an interesting one if I understand “Times Editor James Harding Outlines Plans for Online Charging”. The idea is to sell a 24 hour access token to the day’s content. I chortled when I read the alleged quote made by a Times’s executive; to wit: “rewrite the economics of newspapers”. A rewrite is needed. The article made this point I found memorable:
“We think it’s good for us and good for business to stop encouraging the trickery and fakery of the ABCs. We want real sales to real customers – that’s what our advertisers want too.” He said the Times would also enhance its relationship with its most loyal readers through home delivery and a reward programme through the recently launched Times+ membership venture. “Historically, newspapers have treated their best customers worst and their worst customers best,” he said.
Yep, now newspapers are going to start treating me better. And because I am encouraged by the Times’s bold move, I won’t mention that Google gets another knock on the nose in the write. That’s a standard poetic touch in some literary circles.
There are some interesting swirls of hope percolating in the reported pricing method; for example:
- Some people will pay for a one day pass or an annual subscription. The assumption is that a lot of people will pay. In the online world, the impact of a for-fee approach can be severe. A site can lose a big chunk of traffic once a price tag is attached. This is the difference between “nice to have content” and “must have content”. The Times is in the warmth of the “must have content” sauna. I think that the Times will discover that it is in the “nice to have content” ice house.
- The early online content vendors went with the per item charge. Users could select what was needed from the information warehouse, check the cost of the item, and buy or not. Bundles make a lot of sense in MBA class, but in the grimy world of online, the per item approach has some appeal based on my experience.
- The revenue models for online content generate less bang than a traditional print business model. The notion of commodity content is a potent one. When content becomes a commodity, that content requires a different business model. Google has cracked that problem using the learnings of Overture to add some boost to the company’s approach. The Times’s pricing mavens are not innovating, and I think the revenue reports will make clear how right or wrong the approach is.
The pricing, not surprisingly, is not set in stone. That’s a good idea, because I think the Times’s financial wizards will be holding some chats around the chuck wagon to figure out how to generate substantial, sustainable revenue. How quick? I hear the dinner gong ringing now.
Stephen Arnold, November 18, 2009
Since I will be in the UK in 12 days, I must notify the UK Trade & Investment entity that I was not paid by either an Australian or UK entity to write this article. the UKTI oversight unit will have some work ahead as certain publishing entities begin to adjust their business models. That will have a cost, but the goose is not involved.
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