An article in today’s New York Times examines the “free-versus paid online content” debate that is currently on the minds of all members of the newspaper and magazine publishing industry. Amidst a decline in their subscriber-base, many publications embraced the internet as a channel to help build their audience and increase revenues. But the recession has forced advertisers to tighten their spending across the board, leaving newspaper executives to grapple with new ways to turn a dollar from their online content.
The biggest issue here, is, as the article points out, “How do you get consumers to pay for something they have grown used to getting free?” The reporters draw a parallel between the industry’s current situation and that of the recording industry. Music fans spent years downloading songs illegally for free from sites like Napster and Kazaa, but today, many of these same individuals have reverted back to paying for their music through iTunes. The difference is, of course, these individuals switched their habits because of the nascent fear of the possibility of legal action against them.
None of those fears exist here. With a few exceptions, internet users have come to expect to read their papers for free on-line with no questions asked. It won’t be easy to change those habits. As the article states, “Getting customers to pay is easier if the product is somehow better — or perceived as being better — than what they had received free.”
So what can publications do to make their content worth an investment from their readers? To paraphrase what Mark Mulligan, vice president of Forrester Research, says in the piece, it may be all about “chasing niches.” Finding what certain readers need on a daily basis, targeting them separately, and charging them for it.
It sounds a bit like the industry could use some more help from an inbound marketing campaign and other new media tools. Newspapers and magazines need to better capture their reader’s information; what they are reading, what sections they check most frequently, what journalists they read religiously. As some publications already do, requiring the readers to input their contact information into a free online form before reading certain content is a good way to start (it may be necessary to make sure this content is downloadable for tracking purposes). The reader won’t be forced to pay a fee, but will give up his/her e-mail address, providing the publication with a better sense of the content that they find necessary to have access to. Over time the publication will have a network of data on all of their most frequent visitors and will be able to engage certain individuals with exclusive, relevant and targeted offerings (podcasts, reporter chats, blogs, invitations to roundtables)—for a fee.
There is more to it here that should be considered. RSS feeds, text alerts, and other features can be tailored, or utilize existing content, and offered exclusively to certainly readers. Think of a way to aggregate all content for someone’s favorite sports reporter (their articles, blogs, Twitter feeds, etc) and package that offering to your “premium” subscribers. The key is for the industry to leverage the web to capture a better understanding of their audience to discover what exactly it is that they won’t be able to live without.