The Times Online to be paid access only — the beginning of the end?
Adrian McDermott
August 10th, 2009
According to Rupert Murdoch, The Times and other newspapers in the News International stable will begin charging for access to their online portals next year. Murdoch says that he expects other publishers to follow suit. The New York Times is contemplating a similar move. But is it, as Switzerland’s Tages Anzeiger speculates, tantamount to suicide?
Murdoch seems to be saying that newspapers simply will not make money online with free content. Like nearly all the major news organizations, News International has made big losses this year. The Guardian’s management group, too, is looking at closing the Observer newspaper, the world’s first Sunday newspaper, in order to safeguard the Guardian, which has pumped a lot of money into its online venture. Part of the newspapers’ frustration also comes from their content being widely read and often quoted without payment, so they feel that charging is only a matter of justice.
The problem is whether charging is good business. Previously governments have been able to intervene to ensure some kind of rules for newspapers to compete fairly, but that’s just not going to happen on the Internet, so the only thing that matters is how many people are going to pay. Personally, I don’t see where the numbers will come from. The attraction of reading online is immediate choice. Given the choice of restricting yourself to a single paper, paying out subscriptions to lots of them, or finding free content and analysis from among the many news channels, blogs and other feeds, I think it’s not hard to see where most people will go.
Loss of influence, not just readers, is also a problem. One link here was to a Times Online report about the Guardian. Next year, like many others, I won’t be linking to The Times, not out of spite but out of consideration to readers. Paid-content publications will lose visibility online. Or people will lift lots of content and repeat it — which certainly is not the model these newspapers want.
There isn’t an easy solution to the online dilemma for newspapers, and the period of experimentation can’t last forever. The best chance for papers is to understand and leverage the Internet, and stay in the game as long as possible offering free content and services, forging links, and adding incentives, content and services for paying subscribers. In fact, that’s probably the only chance.





