Now is it just me, or has the Newspaper Industry gone stark raving mad!  For some reason Newspapers all over the world are trying to monetise their online products with the ‘Paywall’ fad, yet even though this particular web model continues to fail, more-and-more newspapers are adopting it. 

Firstly, lets look at the tried an tested (or tired and old, not sure which!) newspaper business model.  Traditionally newspapers charge a cover price for their content as well as running advertisements alongside the editorial and classifieds towards the back of the product at a cost, which in the past has proven rather successful.  In more recent times newspapers in general have seen a steady decline in circulations, which in turn has made them more reliant on advertising revenues; obviously in the good times nobody worried but when advertising confidence slumped during the recent recession it became all too apparent this model is  flawed.

Basically, the world has moved quicker than the print media industry expected and their revenues have quickly disappeared.  Yet I don’t think it is quite that simple, newspapers are an untidy, old, ecologically negative medium to deliver news in an age where the internet and mobile technology have revolutionised the way we live and receive information.  People won’t pay for newspaper print information when they can receive the same, if not more accurate information to their mobile device or laptop for no extra cost.

 Newspapers tried to move into both the online and mobile markets a few years ago and adopt the editorial accompanied banner advert approach, this is not dissimilar to their current print models which they hoped would balance out the slump in circulation and their tumbling ad revenues.  This has worked at some titles where knowledge and the right people are in place, yet in the majority it  has failed; this is simply due to a complete lack of understanding of the Internet within the print media industry and the none savvy staff they employ.  Ultimately this lack of success has forced these same businesses down the ‘Paywall’ route in a last ditch attempt to save themselves from impending doom. 

The Times is the latest newspaper to announce it is launching a ‘Paywall’ for its online presence at £1 per day or a few pounds for a week.  I met this news with abject horror, The Times, charging for content you can get anywhere else for free! – I really did think I was hearing things.  Surely they know that the news is being reported on numerous other free websites at the same time, isn’t this madness?  All recent experiments with Paywalls have been unmitigated failures, in some cases websites have only received a handful of subscribers; which in turn would damage any advertising revenues they currently have, so if I am right -

NO users+NO advertisers+NO revenue=THE END!

At least these websites currently have the potential if managed properly to create revenue, stick a ‘Paywall’ in front of the user and you can kiss it all goodbye.  The only possible way paid for content could ever work would be for all news organisations to pull together and start charging for their content at the same time, however, this would still not stop organisations such as the BBC or new websites from continuing to deliver the same content.  We need to bear-in-mind that unless your content is premium people simply will not pay. 

 Television is a good example of paid for premium content.  Sky have monopolised Premier League Football and Boxing so they can charge a premium for that content, no other broadcaster can show this content live and can only report highlights; if the BBC tried to charge you for Match of the Day would you pay for highlights? – Let’s be honest if you are going to pay for something substandard then you may as well pay for the real deal!  Unfortunately this is similar to where news organisations find themselves, their content is no longer premium, so how can charging even be an option.

Newspapers need to realise the landscape around them has forever changed, if they want to charge for content then that content needs to be unique; this however, doesn’t seem to be happening.  Maybe the industry is just too set in its ways, maybe it has run its natural course, either way newspapers look guaranteed to be the biggest casualty of the technological revolution in my lifetime unless they wake up, and quickly!