Paywall=More or Less $$ for Newspapers

Paywall=More or Less $$ for Newspapers

Can Newspaper/Media websites put up a Paywall and make more money than they are currently making?

Paywall = No or limited content for public consumption. A paid subscription is required.

Newspapers have always struggled with monetizing websites.

Truths that can't be ignored:

1) Newspapers have never made enough money in subscriptions/sales to even offset the costs of the materials and postage let alone pay for staff or make a profit.

2) Profit is made from advertising.....enough said.

Moral=If this philosophy didn't even work in the papers hay day, when they were the only game in town, it's safe to assume that this won't miraculously be the financial answer of the future.

3) As a consumer...once I have become accustomed to getting something for free, most likely I will never pay for it.

Exception= If something is truly unique and desirable and I can't get it anywhere else for free I will pay for it.....but I have to really want it desperately.

So, if these statements are in fact truths, one could ask "why would anyone with business savvy even consider this"? Answer = Because newspapers are not leaders they are followers. Once they see one example of something working for another paper they automatically assume it can be replicated for their business. This is a huge and dastardly mistake.

Metro and Community papers each need an independent online strategy for the future. Relying on your neighbor is not a strategy for success.

There is one example of a news organization that is currently utilizing a paywall successfully today, The Wall Street Journal (WSJ). You may have heard this as an argument before because it's the only good example pro-paywallers are using.

Let's break down why this may work for WSJ. The WSJ has a niche audience that comes to them for specific content. The content in the WSJ can't easily be found elsewhere. Therefore their subscribers more than happy to pay for high quality content.
I'd like to emphasize.....HIGH QUALITY CONTENT.

Let's bread down why this would not then work for the average community newspaper. Many are relying heavily on AP news to populate their print and online content. AP is not unique or niche enough to warrant local subscribers to pay for it. Simply put if the content provided is generic and available for free elsewhere who will buy it from you? A Paywall will send your current users elsewhere, traffic will decrease, and advertising will disappear. Once the traffic is lost it will be almost impossible to regain. If you think advertising revenue online is low now... just wait until your traffic disappears.

Okay so what can be done? Here's a better strategy, higher smart motivated, non-traditional print personal who can move your company forward. Operate as a traditional business by investing in new technology, training staff and producing a quality product. Many newspapers are blaming "giving away" content as the common denominator for their demise. Maybe they need to be looking at what they are producing, how they can improve it and then how can they sell it. A sales strategy, whether increasing advertising or making money by charging for content is not be only answer.

Newspaper executives need to take a hard look at their product and ask themselves....
"Would you buy this rag?"