Around the Net

Study: Paywalls Keep The Cash Out

CUNY's New Business Models for News Project has released a study that goes through two pay models for a metro news organization, which has decided to charge for content online. In one scenario, the Web site charges for all of its content; in the other, the site only charges for a fraction of it. What does the study find?

Sites that charge for all of their content consistently lose "millions" during the first three years if they institute the pay wall. A hybrid site, meanwhile, can become profitable before then, since additional advertising revenue more than makes up for any loss in subscription revenue. The findings are exactly the opposite of a new study by Ramon Casadesus-Masanell of Harvard Business School and Feng Zhu of USC's Marshall School of Business, which concluded that the surest path to success is committing entirely to one monetization method.

advertisement

advertisement

Read the whole story at paidContent »

Next story loading loading..