Forbes reporting:
The vogue for digital paywalls sweeping the news business has made it all the way to the top: Gannett,
the nation’s largest newspaper publisher, is planning to switch over
all of its 80 community newspapers to a paid model by the end of the
year, it announced during an investor day held in Manhattan Wednesday.
“We will begin to restrict some access to non-subscribers,” said Bob
Dickey, president of community publishing. The model is similar to the
metered system adopted by The New York
Times a year ago, in which online readers are able to view a limited
number of pages for free each month. That quota will be between five and
15 articles, depending on the paper, said Dickey. Six Gannett papers
already have a digital pay regimen in place.
There is one Gannett title, however, that will remain free, at least
for the foreseeable future: USA Today. Gannett CEO explained that
decision as a matter of priorities, noting that USA Today is in the
midst of overhauling its website to create a user experience more
similar to that of an iPad app.
But any attempt to charge for its articles would likely encounter certain obvious issues. While its main national rivals, the Times and The Wall Street
Journal, rely on their depth and quality to persuade readers to pay up,
USA Today trades on its ubiquity. More than half of its 1.7 million
circulation comes from copies distributed to readers free (or quasi-free) through hotels, airports and other hubs.
But even with USA Today not taking part, Gannett projects its new
paid content initiative will contribute to a 25% increase in annual
subscription revenues companywide. That in turn will swell earnings by
$100 million per year.
http://www.forbes.com/sites/jeffbercovici/2012/02/22/gannett-building-paywalls-around-all-its-papers-except-usa-today/
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