Mar 15, 2012

Newspaper site paywalls: dribbles of gold, not rivers

The grand experiment on erecting paywalls for news content online took another step yesterday, with News Limited releasing figures -- sort of -- for how many people have signed up for digital subscriptions to The Australian.

Margaret Simons

Journalist, author and director of the Centre for Advanced Journalism

The grand experiment on erecting paywalls for news content online took another step yesterday, with News Limited releasing figures — sort of — for how many people have signed up for digital subscriptions to The Australian.

Meanwhile the Herald Sun has erected its paywall, relying largely on religion (AFL football) to drive subscriber numbers.

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6 thoughts on “Newspaper site paywalls: dribbles of gold, not rivers

  1. Schnappi

    Having given the murdoch press away some time ago,and with rhinehart now the major shareholder at fairfax,have been clicking on very little of their stories,articles.
    Think I can survive with crikey,abc and google news to keep up to date about whatever tv news does not cover.

  2. LJG..............

    SCNappi – the Murdoch paywall can be easily got around by cutting and pasting the hyperlink into google search.

  3. Schnappi


    Ok,but should get the headline in google news,most I do not click on,as think they are unauthorised polls ,whch news ltd used to do and probably still does,which means they have an article for comment,but never publish any comments which gives them a poll I believe is unauthorised and deceitful.

  4. Oliver Townshend

    Took the 3 months Oz deal, but as I principally only wanted to read George Megalogenis, and the occasional article my mates link to on Facebook/Twitter I couldn’t bring myself to cough up. I think $100pa is the most I’m prepared to pay, and I’d rather have the Financial Times, Crikey, Ny Times before the Oz.

  5. Bill Williams


    The statistic missing from your essay is the number of free online subscribers (before the 3 month free offer that is) the Australian has successfully converted into paying subscribers. If, as I suspect, the Australian has lost more than half of its free subscribers as the result of trying to get them to pay then the loss of advertising value would probably mean the experiment was a failure.

    When accountants are given too much say in online strategy the can easily stuff up a good thing. A free online subscription to the Australian means that all the people who can’t buy the Australian can read it…..making the advertising promise and value to the Australian’s advertisers is significantly increased.

    If forcing the Australian’s online subscribers to start paying causes most of them to discontinue their online subscription, the reduction to the overall capital value of the business when measured by the total number of readers may be greater than the revenue generated by those subscribers who are prepared to pay.

    This happened in reverse when the clowns at Telstra decided that “the Trading Post” could be converted from a newspaper (that people read) with an online search engine to expand readership reach into an online search engine by itself. These strategic fools destroyed the value of the business they bought by making the assumption that a search engine is an improved sales vehicle than a newspaper. They didn’t even provide an online version of the newspaper that readers could still read, turning pages….and in the process discovering items they wanted to buy that they weren’t even searching for… jousting sticks!

  6. Elworthy Brent

    Those with long memories of the media will think back to the days when community newspapers were sold on subscription (albiet modest in comparison to their daily cousins).
    Every time there was a round of sub increases (all papers seemed to do around the same time of year), the little rags lost a greater proportion of their readers.
    It took their owners (including Fairfax and News, or their ancestors) years to catch on to the fact that a larger and more secure advertising market awaited if only they would abandon old ways.
    As it was, subs didn’t even cover the cost of the newsprint – never mind the ink, distribution costs, rent, journos. . .
    Now every community paper in the land goes to every letterbox. As much as you might malign them, if you’re an advertiser who needs to reach every household in a particular catchment they are a cost-effective option.
    In today’s internet age, the answer for news gathering organisations seems obvious – go for the numbers (of eyeballs, that is). Once you have captured a loyal readership that represents a majority of a valuable demographic – even if obtained at considerable cost – you can charge advertisers for access to it.
    Having said that, the calcs of value vs cost are way different now. Nevertheless, charging readers to access material is the way of diminishing returns.

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