More publishers planning to charge for online content but consumers may not cooperate
A pair of new reports from Forrester Research offer sobering data for newspapers and magazines planning to charge for content. A recent American Press Institute survey found that 58% of newspaper respondents are considering initiating paid access for currently open/free news and information online, and nearly 25 % expect to implement a paid strategy in the next six months. “This is a big change, considering that 90 % of the responding newspapers currently do not charge for content, and only 3% currently have a paid-only site.”
But in Publishers Need Multichannel Subscription Models Forrester finds that “most consumers (80%) say they wouldn’t bother to access newspaper and magazine content online if it were no longer free (no surprise), and the rest are split about how they’d like to pay for content:
What’s more, “those consumers can’t be identified by demographic segmentation alone; publishers must use engagement metrics to target the right consumers with the right offer. And what that offer is will vary: While some consumers say they’d prefer a multichannel subscription bundle, others say they’d consider a single-channel subscription or micropayments. While some consumers voice a preference for Web delivery, others prefer access via mobile devices like phones, eReaders, and netbooks.”
The situation in Europe is similar, in Who Will Pay For Online Content? Forrester finds that 4% of European Internet users surveyed pay for online news content, and 12% said they would pay for it in the future. The picture is somewhat brighter for music and movies, followed by eBooks and games:
Boston Consulting Group has a more optimistic view. In research released today BCG says consumers are willing to spend small monthly sums to receive news on their personal computers and mobile devices. In a survey of 5,000 individuals conducted in nine countries, BCG found that the average monthly amount that consumers would be prepared to pay ranges from $3 in the United States and Australia to $7 in Italy.
BCG’s survey found that consumers were more likely to pay for certain types of content, specifically news that is:
- Unique, such as local news (67 percent overall are interested; 72 percent of U.S. respondents) or specialized coverage (63 percent overall are interested; 73 percent of U.S. respondents)
- Timely, such as a continual news alert service (54 percent overall are interested; 61 percent of U.S. respondents)
- Conveniently accessible on a device of choice
In addition, consumers are more likely to pay for online news provided by newspapers than by other media, such as television stations, Web sites, or online portals.
Notably, BCG says consumers are specifically not interested in paying for news that is routinely available on a wide range of Web sites for free.
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