Murdoch’s UK paywall – set to change the world of online news

May 26, 2010

Rupert Murdoch could never be accused of stupidity. Rash behaviour at times, certainly, but he’s ruthlessly smart and totally focused on the bottom line.

In a few weeks time Murdoch’s most valuable (in terms of reputation and cache, if not profitability) media assets in the UK will disappear behind a paywall.

The Times and The Sunday Times will cost you real money from some time in June 2010. Already if you want to check-out the still free content you have to sign-up to go past the front page.

Next time you visit The Times, take a moment to register...have your credit card handy too.

Paywalls are controversial; supporters argue that without significant injection of subscriber funds there will be no more quality journalism, while detractors say that paywalls are anathema to the very ethos of the Internet.

One critic, Future magazine’s CEO Stevie Spring says she wishes Murdoch well, but remains unconvinced that the paywall experiment can work:

“Perishable news – like that News Corporation is talking about, for instance – is ubiquitous,” she said. “The basic rules of marketing say people will substitute and not pay for what they can get free. Good luck to them, I really hope it works but all the norms of marketing say it won’t. [However] it is an experiment they can afford to make.” [guardian.co.uk]

Roy Greenslade also puts the strategy under the financial spotlight, pointing out that subscriber numbers would have to jump exponentially to cover the costs of the newspapers’ £100 million editorial budget:

If 100,000 people agreed to pay £2 a week for access to the papers, it would result in annual revenue of £10m. It’s a sobering thought that the sum is but a tenth of the papers’ editorial budget and less than an eighth of their current joint annual losses. [Greenslade blog] Read the rest of this entry »


Barbarians at the gates – Ultimo is smouldering?

October 15, 2009

Another very good analysis of Mark Scott’s Melbourne Uni speech which I covered yesterday. This from Trevor Cook at Crikey.com

Clueless in Ultimo

In other areas too we may come to see the world of the ‘empowered audience’ as deficient. Comment and opinion are everywhere on media sites these days, but there has been no similar expansion in facts, ideas and analysis, Scott’s much-heralded partnerships with the audience, like the barbarians attacking Rome, may be more suited to producing noise and colour than anything more enduring.

Fourth, it’s likely that the new media will be absorbed into the old media:

As the Western Roman Empire crumbled, the new Germanic rulers who conquered the provinces upheld many Roman laws and traditions. Many of the invading Germanic tribes were already Christianised, though most were followers of Arianism. They quickly converted to Catholicism, gaining more loyalty from the local Roman populations, as well as the recognition and support of the powerful Catholic Church. Although they initially continued to recognise indigenous tribal laws, they were more influenced by Roman Law and gradually incorporated it as well.

The ABC will still be the ABC with just a little more commentary from the audience. Not so much deliverance from the strictures of old media as an opportunity to join the slaves at the Mill.

The absorbtion is happening as we speak.

  • CNN’s iReport is IndyMedia on steroids, but without the awkward anarchist politics
  • TV on demand was YouTube
  • Twitter and Facebook are the cool new marketing tools that are supposed to help legacy media connect with YOOF

There’s a great comment thread on Scott’s speech on Larvatus Prodeo

Read the rest of this entry »