The advent of online media has forced content producers to consider the best way to integrate this “new” information channel into their business models. Content creators have grappled with the choice of charging content consumers with information that has otherwise (until now) been free. Consider the recent decision by New York Times to begin charging their readers to access online content. NYT’s subscribers have always paid for a hard copy of the newspaper to arrive at their doorstep; it would make sense, then, for NYT to charge online readers for the online version of the newspaper. Although NYT is not the first newspaper to charge for online access, other major newspapers will evaluate the success (or failure) of NYT’s paywall when considering their own online content as a possible source for secondary revenue.
A recent Washington Post article highlights newspaper analyst Ken Doctor’s concerns over newspapers transitioning to a paywall system. Doctor is concerned that the fees are too high and readers – especially the younger demographic who has grown up with relatively full and free access to the Internet – will not be willing to pay and newspapers will lose readership. A national Pew Internet survey of 755 adult Internet users helps shed some light on Doctor’s concern. Findings show that Internet users between ages 30-49 are more likely to pay for online content than their younger or older counterparts; however, among those that pay for news (18%), there is not an obvious age gap.
The full Pew Internet report can be found here.
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