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HOME • MANAGE SUBSCRIPTIONS • MEDIA KIT
Newspaper Execs And Readers View Online News Availability Differently
by Jack Loechner, Tuesday, November 10, 2009, 8:15 AM

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American Press Institute, with ITZ Publishing and Belden Interactive, recently published initial results of a study designed to help Newspaper executives understand the current peer practices in generating revenue from digital content, the various pay models, success levels, and approaches to issues like site registration, electronic editions and tracking original content across the Web.

Among the preliminary findings, nearly 60% of respondents are considering initiating paid access for currently open/free news and information online, and nearly 25% expect to implement a paid strategy in the next six months. This is a big change, says the report, considering that 90% of the responding newspapers currently do not charge for content, and only 3% currently have a paid-only site. 

Capturing new revenue and preserving print are likely the key drivers of any final decision to adopt a paid-content strategy. 34% of respondents think capturing new revenue opportunities is or will be the most important factor, while 28% think it is or will be preserving print circulation.

Key Drivers Of Decision Making by News Providers

Driver

% of Respondents

Capturing new revenue opportunities

34%

Establishing value for copyrighted content

18%

Preserving print circulation

28%

Driving product development/new revenues

13%

Replacing lost display ad revenues

4%

Replacing lost classified revenues

0 %

Don't know

3%

Other

2%

Source: American Press Institute, November 2009

Most of the respondents overlook the opportunities and discount the convenience of e-editions, which give users the experience of reading a newspaper online. Most are not charging for e-editions or are not charging enough:

  • Only 67% offer an electronic edition of the paper on their Web sites
  • 59% of those offer it free to their print subscribers 
  • The median price for an online-only subscription is $5.99 a month.
  • The median up-charge price, for those who offer it to print subscribers, is $4.99 a month

Current prices for online subscriptions strongly suggest that "convenience" pricing is generally in play, not tied to rigorous price analysis or research into what people are willing to pay. Respondents report a wide range of online subscription charges (from $1 to $27.50 a month), yet they report surprisingly uniform levels of uptake on subscriptions, typically 1% to 3% of print circulation, regardless of price.

While most of the respondents allow users to register for their sites, few require it and even fewer are monetizing registration in any way.

  • Only 27% require users to register
  • 23% have a specific program for monetizing registration information in active use
  • 36% of respondents indicate they are considering a registration program

Web Site Registration Programs

Program

% of Respondents

Allows registration

71%

Requires registration

27%

Considering registration

23%

Monetizing registration

36%

Source: American Press Institute, November 2009

The report points out that there is a potentially deep disconnect between news organizations (The Provider) and the audience (The Reader) for their Web sites. Industry executives' responses are compared with user responses aggregated from Belden Interactive 2009 Local Market Surveys. While 54% of news executives rate their online news and information as "very valuable," only 44% of news Web site users see it that way.

Value of Online News and Information (% of Respondents)

 

Provider Perception

Reader Perception

Very valuable

54%

44%

Somewhat valuable

39%

51%

Not very valuable

1%

3%

Not at all valuable

1%

1%

Don't know

6%

1%

Source: American Press Institute, November 2009

Only 9% of news executives think it would be "very easy" for their audience to find a replacement for the online content their news Web sites are currently providing, compared with 19% of users.  

Degree of Difficulty to Replace Online Content From Site Currently Provided (% of Respondents)

Difficulty

Provider Perception

Reader Perception

Very easy

9%

19%

Somewhat easy

22%

33%

Not very easy

34%

28%

Not very easy at all

34%

15%

Don't know

2%

5%

Source: American Press Institute, November 2009

The audience that gets its local news and information online would focus on the Internet and TV, not print, if their local newspaper Web site were no longer available. 68% of users say they would turn to other local Internet sites, 45% would turn to television, only 30% would turn to the print edition of the paper, while 75% of news executives think users would turn to their print editions.

Alternative Likely to be Selected if Local Newspaper Web Site No Longer Available (% of Respondents)

News Provider

Provider Perception

Reader Perception

Your print newspaper

75%

30%

Other local media sites

55%

17%

Television

53%

45%

Other local Web sites

48%

68%

Radio

46%

35%

Regional/National sites

42%

37%

Other newspaper

31%

12%

Other

4%

5%

Don't know

3%

2%

Source: American Press Institute, November 2009

The report concludes with key variables to be analyzed by news organizations contemplating a conversion to online paid content, or any other revenue opportunities.

To read the variables and recommendations, and for additional details about the study in PDF format, please visit the American Press Institute here.

 

 

47 people recommend this article. 

4 comments on "Newspaper Execs And Readers View Online News Availability Differently "

  1. Lon Haenel from Janesville Gazette
    commented on: November 11, 2009 at 2:19 PM
    Those that admire free content on websites say the problem is not the free content, rather the lack of ad revenue. Those that admire web advertising results say the problem is under-performing banner, sky scraper, pop over, pop under, etc.-- web ads. Namely under performing assets on newspaper local websites usually look like a generic business card or a version of the outdoor ad I drove past on my way to work this morning. To the free content advocates, I ask how responsive are you to the web advertising to which you are exposed. They are, after all, hoping for your money. The same money you refuse to part with to engage in your online information quest. I also ask if the web-based advertising assets bother you or create a nuisance during your web sessions of traversing the free content world. I also have to wonder how likely are you to patronize a business, hit on an offer, or provide your credit card for an online purchase when there is a general hesitancy to pay for anything online. Until we answer these questions, we will continue to wonder why web advertising is, on a local level, under performing.

  2. Jonathan Mirow from BroadbandVideo, Inc.
    commented on: November 10, 2009 at 12:04 PM
    Broken record time: the only two things you can charge for online are financial information (because it makes you more money) and adult content for reasons I'm sure are clear to most. Almost every OTHER paid-content model online has failed. Seriously, I read the print paper in the morning and get news online all day from Yahoo. If the Denver Post goes out of business (along with the Rocky) then I won't read the printed version. If the Post website charges for content I (and 95% of those who currently use the site) simply won't go there. The key is for these online entities to find new and interactive ways to attract advertisers - not to charge for what they're currently giving away. I've said it before and I'll say it again (pay attention DNA) A Paid Hulu is a Dead Hulu.

  3. Les Blatt from Freelance New Media Person
    commented on: November 10, 2009 at 9:54 AM
    The disconnect seems to me to be on the question of how easily online content could be replaced, and by whom. There really is little difference between users and providers when it comes to considering online news and information very or somewhat valuable: 95% of users and 93% of providers. So far, so good. But the next table shows that when asked how easy it would be to replace online content if a particular news site chose to put it behind a subscription wall, only 31% of the providers thought it would be very or somewhat easy to replace - compared with 52% of their readers. That's a pretty significant disconnect, and it ought to be a warning bell for providers.

  4. Adam Day from Marketing-Research Associates, Inc.
    commented on: November 10, 2009 at 9:48 AM
    Newspapers need to keep online and mobile readership free. This is coming from 22 years of newspaper consulting expereince. I read the NYTimes several times a day on my IPhone. There is a bottom banner ad constantly in view. Advertising revenue has always been greater than circulation revenue and advertising prices are dependent on readership. That's a simple formula to understand where your bread is buttered. Focus on delivering advertising to readership.

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