There’s yet another poll out there reporting the obvious: Most people say they won’t pay for something they get for free now.
Of course, it’s about newspapers online.
Harris Interactive found that 77 percent of U.S. adults say they won’t pay to read newspapers online. In other words, 23 percent say they would pay. Hey, we’ve got to find silver linings somewhere these days.
Twenty-three percent seems small until you put the number in context. Revisit the days when newspapers still churned out fat profits—before their circulations went into free-fall.
In 2000, newspapers had circulation of about 59 million, according to the Newspaper Association of America. The adult population of the U.S. was about 209 million. That means about 28 percent of Americans bought a paper on a given day and, collectively, they paid an inflation-adjusted $13.2 billion for them that year.
I don’t see 2009 numbers from NAA yet, but if you take 10 percent off 2008’s circulation number, you get about 44 million out of a population of 232 million. That’s 19 percent.
So more people say they will buy newspapers online than actually buy papers in print now. That’s a bit apples to oranges: The Harris poll didn’t say the 23 percent would pay every day, and more than 19 percent of adults buy print newspapers. That’s primarily because of newsstand sales where the ratio of buyers to papers sold is much higher than one-to-one since few people buy at the newsstand every day. And let’s remember that this is a poll, and others have gotten different results
But taken at face value (which critics of charging online will certainly do with that 77 percent number), if more than fifty million people say they’re willing to pay you something for your product, even if most say just between $1 and $10 a month, that’s not nothing.
Circulation revenue isn’t going to be enough to fund news organizations by itself, but it could be an important revenue stream if the industry gets its act together.
Some studies suggest that subscription fees will only appeal to loyalists, leaving single-story article fees/charges or the invention of a "day pass" as a more popular option for irregular visitors. But because those people who visit your site between once and five times a month could make up for a great deal of your audience, the way publishers price those individual or day fees is increasingly critical.
Toward the end of last year, the American Press Institute published a report ("Revenue Initiatives 2009"), that attempts to look at this topic from the perspective of medium (?) sized newspapers. Although I wonder if the pool of publishers and editors interviewed could have been a little bigger, the report provides some interesting numbers to look over, if not offering journalists an idea of what questions need to be asked over the next year or so.
The study has some wonderful moments though: Analysis of the report claims 58% of publishers said they are considering charging for content, and 49% said they have no timetable in mind for how that will play out. Good to know publishers have an idea of where they're going....
To publishers: "How likely do you think it is that newspapers will succeed in charging for content in such a way that these new revenues will significantly contribute to the future of newspapers?" Somewhat Likely (39%) Not Very Likely (36%)
If you want a slippery slope though, we could extrapolate what might happen to journalistic intent if a-la-carte pricing were instituted on a larger scale. If every citizen pays for content online, but only for the individual articles they want rather than a subscription fee, I wonder if the a-la-carte model will lead to an imbalance in what the publisher supplies in contrast to the other categories of hard news and business news the paper might ordinarily investigate.
#1 Posted by Aaron B., CJR on Fri 15 Jan 2010 at 04:26 PM
Since I've become reduced to living on Social Security and I read 7 newspapers a day on the net, paying a fee would take away my entire source of news. And there is never a leeway for those in my circumstances.
#2 Posted by Joan D, CJR on Fri 15 Jan 2010 at 06:05 PM
pay for onlen news is a bad idea !!!
#3 Posted by Danfur-China, CJR on Sat 16 Jan 2010 at 02:01 AM