The Economist declared 2010 “the year of the paywall.” As newspapers continue to adjust their business models, many outlets are considering using a paywall and charging for content. The Wall Street Journal has successfully used a partial paywall model for years. According to The Economist, The Wall Street Journal expects to generate more sales from content than from advertising this year.
It is rumored The New York Times is about to make the move towards a paywall model soon. For an outlet that has been providing free content for years, such a move presents a dilemma. How can you convince millions of readers to start paying for something that used to be available for free? And how do you convince them to stay when so many other news outlets and bloggers are offering news coverage without a paywall?
That’s where the strength of an organization’s brand identity comes in.
Readers pay for The Wall Street Journal because they believe it has something unique to offer. Whether it’s journalistic style, format, specific journalists, subscribers believe The Journal brand offers something of value and so they’re willing to pay.
Smaller outlets that have been forced to rely heavily on syndicated content in light of severe staff cuts will face a tougher time justifying a paywall. However, a paywall isn’t the only possible solution. Other outlets are experimenting with different business models. For example, The Seattle P-I converted to an online-only format last year. A similar model is leveraged to great success by outlets like The Huffington Post and Slate.
As the news landscape grows more competitive, it becomes more important for outlets to differentiate themselves from the crowd.
Monday, January 18, 2010
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