Last week's Guardian Media Talk podcast found host Matt Wells raking over the pay vs. free coals with Jeff Jarvis. There's something of a backlash going on against the 'free' model for newspapers online at the moment, but how many newspapers or news outlets are currently making decent cash from the online subscription model? Not ads, but subscriptions.
Does the paid subscription model only work for niche online publications like some of those below? Or can more general news outlets make it work?
I'll add to this list as and when I find any new additions. For the record, for online news I've only ever paid for Salon.com (back in the day) and AtlasF1.com (also back in the day). I'm now working with the Frontline Broadsheet launched today... (issue 1 pictured above) which is resolutely print only - here's the subscription pdf) The only print subs I hold are; Frontline Broadsheet, Private Eye and Guardian Weekly.
One point to note, a May, 2009 survey found that readers "could be willing to pay almost as
much for some high-quality online newspapers as they do for print
versions, particularly in specialist news areas"
1. Wall Street Journal
January 2, 2008 from paidcontent.org:
“a new report from Bear Stearns analyst Spencer Wang. WSJ.com revenue
is currently pegged at $78 million annually, based on an estimated
989,000 subscribers paying $79/year”
November 5, 2008 from paidcontent.org:
“WSJ.com is making more than $200 million from advertising and
subscriptions, News Corp Chairman and CEO Rupert Murdoch told analysts
during the company’s earnings call. He said the site is making
“probably $100 million in subscriptions and certainly over $100 million
in advertising.” link
2. Financial Times
FT.com’s paid content strategy appears to still be paying off as owner Pearson (NYSE: PSO)
announces “good growth” in content, subscription and digital revenues
at FT Group, despite worsening advertising sales. In a Q109 trading
update ahead of its AGM today, London-listed Pearson says that
advertising at FT Group accounted for just 16 percent of its revenues
and three percent of Pearson’s overall revenue, suggesting that paywall fees, B2B data subscriptions and events are proving enough to drive growth on their own. link
3. Malaysiakini
The site charges $40 a year for the English news, contributing
$600,000. Ads brought in $200,000 last year, and an additional $200,000
came from grants. As a result, the site has been breaking even since
2004.
Subscription is at the heart of the business model, said Chandran.
It started charging in 2002, even though most people said they didn’t
want to pay and only 1% of readers subscribed. Today only 5% pay a
subscription.
“People are more willing to pay for independent medium as it will help bring about political change,” said Chandran. link
4. Salon.com - not really making any cash at all...
Salon Premium revenue is recognized ratably over the period that
services are provided. This source of revenue has been decreasing since
Salon's quarter ended December 31, 2004 when paid subscriptions peaked
at approximately 89,100 and decreased to approximately 28,500 as of
September 30, 2008. Salon expects this downward trend to continue, as
it is placing greater emphasis on its advertising sales to generate
revenue. link
5.The Economist
Economist.com took a pass on the free-content phenomenon first time
around - now, just as flares and yo-yos came back in to fashion, the
publisher sees pay walls regaining popularity in an advertising
downturn.
The news mag’s site already charges for stories over a year old and, publisher Paul Rossi told our Future Of Business Media conference, that could be just the right model for a looming recession: “The growth in online advertising is slowing. Is this the return to paid content online,
because advertising becomes less a driver for the business? It will be
be interesting to see if paid content comes back online because the
model is changing." link
Frontline: A Broadsheet - issue 1 cover, originally uploaded by noodlepie.
