Friday, October 2, 2009

Charging For News Online

From PaidContent.org:



CUNY’s New Business Models for News Project runs through two pay models for a metro news organization that decides to charge for content online. In one scenario, the website charges for all of its content; in the other, the site only charges for a fraction of it. The conclusion: 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, by contrast, can become profitable before then, since additional advertising revenue more than makes up for any loss in subscription revenue.

For instance, in one scenario, a site loses out on almost a third of its total ad revenue in year one when it ups the amount of content it puts behind a pay wall to 50 percent from 20 percent; Expenses stay the same. (Strangely, the model does not show any change in subscription revenue in that case). There are lots of variables—and it quickly gets complicated. But the Project invites visitors to plug their own numbers into the model, so it’s worth a look. Here’s the link.

So if you were making the decisions, how would you set up your paid-content website?
 
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