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Behind the paywall - Can you really charge for News content?




As MediaGuardian, New York Times and News Corp as a whole started making noises again about charging for their content it begs the question of whether this idea is at all workable? There seem to be too many barriers to this ever actually happening?

1. The BIGGY. Most web users can get the same information a click away for free and carry the mindset that the majority of web content is free. How can you change this ingrained expectation and behaviour?

2. The obvious scenario perhaps. Website X throws up a Paywall* and starts charging for access to it's cherished content. User Y subscribes to content, copies content and immediately disseminates content for free.

3. Advertising revenue. Advertisers would run to the hills. Why pay for placement on a site that will invariably attract/get less visitors than before? The exception to this has been FT.com.
Whilst they successfully charge their users high premiums for access to content they can expect to charge equally high premiums to advertisers. Those that do pay for digital content are a valuable audience, both in terms of the additional profile data from registrations and the simple fact that they are obviously willing to pay. But, and it's a big but, on the web they are still the exception not the rule.

4. The BBC. The BBC is as ever proving to be the eccentric case in this mix. They already have a Paywall in the sense that they charge the UK public licence fee £142.50 annually for it's service through it's Public Service Broadcasting remit. The online content continues to be funded through this and while this is the case how can other news sources possibly compete?

5. Supply outstrips demand. There are still more news sources than consumers on the web. A survival of the fittest invariably kills off the weaker brands over time but the biggest growth in news feed comes from the blogging community and social media.

6. Credit Crunch. As we continue to be gripped by the economic downturn how many of us really value our daily news injection from Website X, Y or Z over other more 'essential' financial obligations?

* Paywall - A website that restricts access to certain content only to paid subscribers.

UPDATE: 20th April 2011
This article in the Guardian today has probably given us a sneak peak of the future of Paywall content. Slovakia's media throw up a universal paywall :