Thursday, February 23, 2012

Gannett Building Paywalls Around All Its Papers Except USA Today

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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