Comments on: Ads and Paywalls won’t save newspapers and magazines http://thewayoftheweb.net/2009/06/ads-and-paywalls-wont-save-newspapers-and-magazines/ The digital convergence of media, entertainment, marketing and PR Thu, 18 Mar 2010 16:39:46 +0000 http://wordpress.org/?v=2.9 hourly 1 By: neilperkin http://thewayoftheweb.net/2009/06/ads-and-paywalls-wont-save-newspapers-and-magazines/comment-page-1/#comment-5145 neilperkin Fri, 05 Jun 2009 15:46:21 +0000 http://thewayoftheweb.net/?p=1020#comment-5145 Tricky this one. My belief (as I've written about recently) is that value begets value. I'll stick my neck out and say that I think that if owners create sufficient value for people through content and services which are desirable enough, then people will pay for it. The trouble is, is that many define that value in old-model ways, which is what I think you're talking about here. There's a level of sophistication which I think is lacking in those definitions. There are 3 ways to make money on the web - transaction, subscription, and advertising - increasing the sophistication of how we give value to audiences opens the potential to enable all three. Tricky this one. My belief (as I've written about recently) is that value begets value. I'll stick my neck out and say that I think that if owners create sufficient value for people through content and services which are desirable enough, then people will pay for it. The trouble is, is that many define that value in old-model ways, which is what I think you're talking about here. There's a level of sophistication which I think is lacking in those definitions. There are 3 ways to make money on the web – transaction, subscription, and advertising – increasing the sophistication of how we give value to audiences opens the potential to enable all three.

]]> By: neilperkin http://thewayoftheweb.net/2009/06/ads-and-paywalls-wont-save-newspapers-and-magazines/comment-page-1/#comment-4867 neilperkin Fri, 05 Jun 2009 07:46:21 +0000 http://thewayoftheweb.net/?p=1020#comment-4867 Tricky this one. My belief (as I've written about recently) is that value begets value. I'll stick my neck out and say that I think that if owners create sufficient value for people through content and services which are desirable enough, then people will pay for it. The trouble is, is that many define that value in old-model ways, which is what I think you're talking about here. There's a level of sophistication which I think is lacking in those definitions. There are 3 ways to make money on the web - transaction, subscription, and advertising - increasing the sophistication of how we give value to audiences opens the potential to enable all three. Tricky this one. My belief (as I've written about recently) is that value begets value. I'll stick my neck out and say that I think that if owners create sufficient value for people through content and services which are desirable enough, then people will pay for it. The trouble is, is that many define that value in old-model ways, which is what I think you're talking about here. There's a level of sophistication which I think is lacking in those definitions. There are 3 ways to make money on the web – transaction, subscription, and advertising – increasing the sophistication of how we give value to audiences opens the potential to enable all three.

]]> By: Angus Farquhar http://thewayoftheweb.net/2009/06/ads-and-paywalls-wont-save-newspapers-and-magazines/comment-page-1/#comment-4864 Angus Farquhar Thu, 04 Jun 2009 08:01:09 +0000 http://thewayoftheweb.net/?p=1020#comment-4864 Nice piece Dan and I totally agree that the only way that news organisations are going to make money is to play on the loyalty people have and find something that gives them extra value.<br><a href="http://www.pressgazette.co.uk/story.asp?sectioncode=1&storycode=43569" rel="nofollow">http://www.pressgazette.co.uk/story.asp?section...</a><br>But I think there might be a chance if they provide extra value to advertisers that could persuade them to pay more than the base rate, but that is going to be a difficult one to prove. There will always be someone else who claims the same value but offers cheaper prices.<br>After reading a couple of recent things:<br><a href="http://www.guardian.co.uk/media/2009/jun/01/digital-news-media" rel="nofollow">http://www.guardian.co.uk/media/2009/jun/01/dig...</a><br><a href="http://twitter.com/ukaop/statuses/1989745803" rel="nofollow">http://twitter.com/ukaop/statuses/1989745803</a><br>I have to take issue with mleis' comment. I do think that mobile devices are the way forward but so far they simply aren't catching peoples imagination and I think the gap between them becoming popular and the non existence of print revenue will be too great.<br>Also worth baring in mind is the fact that the profitability of newspapers is a very recent thing. Since the beginning newspapers have found it hard to make money, many have come and gone and those that have survived long term have often done so at the behest of a generous benefactor, whether that be an individual, foundation or business.<br>I think you hit the nail on the head when you said it is better to settle for a small profit margin than one that is in terminal decline. The trouble is getting shareholders to see that sense, they don't lie slow rising or flat lines on a chart. That's where the generous benefactor comes in. Nice piece Dan and I totally agree that the only way that news organisations are going to make money is to play on the loyalty people have and find something that gives them extra value.
http://www.pressgazette.co.uk/story.asp?section...
But I think there might be a chance if they provide extra value to advertisers that could persuade them to pay more than the base rate, but that is going to be a difficult one to prove. There will always be someone else who claims the same value but offers cheaper prices.
After reading a couple of recent things:
http://www.guardian.co.uk/media/2009/jun/01/dig...
http://twitter.com/ukaop/statuses/1989745803
I have to take issue with mleis' comment. I do think that mobile devices are the way forward but so far they simply aren't catching peoples imagination and I think the gap between them becoming popular and the non existence of print revenue will be too great.
Also worth baring in mind is the fact that the profitability of newspapers is a very recent thing. Since the beginning newspapers have found it hard to make money, many have come and gone and those that have survived long term have often done so at the behest of a generous benefactor, whether that be an individual, foundation or business.
I think you hit the nail on the head when you said it is better to settle for a small profit margin than one that is in terminal decline. The trouble is getting shareholders to see that sense, they don't lie slow rising or flat lines on a chart. That's where the generous benefactor comes in.

]]> By: mleis http://thewayoftheweb.net/2009/06/ads-and-paywalls-wont-save-newspapers-and-magazines/comment-page-1/#comment-4863 mleis Wed, 03 Jun 2009 22:32:57 +0000 http://thewayoftheweb.net/?p=1020#comment-4863 Interesting. I guess the question is where do newspapers find the scarce objects that can generate revenue? In personal contact like the drummer? In devices like the iPhone and Kindle? <br><br>I tend towards the latter, as newspapers themselves are merely a form of distribution. They need to find the convenient interfaces of value, or make them themselves, and go from there? Interesting. I guess the question is where do newspapers find the scarce objects that can generate revenue? In personal contact like the drummer? In devices like the iPhone and Kindle?

I tend towards the latter, as newspapers themselves are merely a form of distribution. They need to find the convenient interfaces of value, or make them themselves, and go from there?

]]> By: Andrew http://thewayoftheweb.net/2009/06/ads-and-paywalls-wont-save-newspapers-and-magazines/comment-page-1/#comment-4862 Andrew Wed, 03 Jun 2009 22:17:44 +0000 http://thewayoftheweb.net/?p=1020#comment-4862 great post dan. especially that last paragraph!<br><br>after seeing the whole API's Newspapers Economic Action Plan embedded at TC, I've gone through the "Doctrines" they propose and made some notes at <a href="http://bit.ly/4105h" rel="nofollow">http://bit.ly/4105h</a><br><br>there is some good stuff there, but some crazy assumptions thrown around as well. as you said above - the paywall just ignores the problem. great post dan. especially that last paragraph!

after seeing the whole API's Newspapers Economic Action Plan embedded at TC, I've gone through the “Doctrines” they propose and made some notes at http://bit.ly/4105h

there is some good stuff there, but some crazy assumptions thrown around as well. as you said above – the paywall just ignores the problem.

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