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Duncan Stephen

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Are newspapers ready to charge for online content?

Content doesn't have to be free and people may be willing to pay... but

14 August 2009, 01:41

Charged debate

A series of posts

  1. Are newspapers ready to charge for online content?
  2. How charging for online content might work

Rupert Murdoch’s decision to experiment with charging for content has ruffled a few feathers. Fair play to Murdoch for being brave enough to put his head above the parapet. If anyone can take the risk, it’s Murdoch — and the rest of the media will have him to thank if the gamble pays off and it reveals the business model that other outlets can follow. Malcolm Coles certainly makes a fairly good case to suggest that Murdoch can get away with it.

Without doubt, monetising content online has been a very tough nut to crack, so much so that many appear almost to have given up. Indeed, the controversy surrounding Murdoch’s decision shows just how much some people now believe that it is impossible to charge for content.

No doubt the advent of the web has changed the game. It is much more difficult to charge for something that doesn’t physically exist, and something which can very easily be distributed for almost zero cost. This more or less means that, if you want to, you can probably get it for free.

I know of one major national newspaper that found that having a paywall was detrimental to their business because they made more money by removing the paywall and instead displaying Google ads to the extra readers. Anyone who has used Google ads will know that we are talking about pretty low amounts here. It is a real demonstration that a simple subscription model will not work for everyone.

But we know that there are plenty of people who are willing to pay for content. As Malcolm Coles points out, there are countless examples of people paying for music, audiobooks and whatever else, when they could have got it for free. That is because, contrary to what many people assume, most humans have a conscience.

For instance, the pay-what-you-like or “honesty box” model actually seems to work. There is the example popularised by Freakonomics about the bagel man. Radiohead seemed to make it work when they released In Rainbows.

Just last week I heard an interview with a taxi driver from Vermont, USA who invites all of his customers to pay what they like. “Nobody has shortchanged me yet,” he says. Even in cases where cash payment was not forthcoming, payment in the form of CDs was.

The problem is, you won’t be able to charge anyone anything if you only serve up a pile of samey crap. Your product needs to be distinctive. The bagel man wouldn’t have done so well if he was trying to sell pens. Radiohead made it work because they are the best band in the world with a loyal fanbase.

But how many media outlets can offer something so attractive? The problem as I see it is not that you cannot monetise any content. The problem is that the content newspapers are producing just now is not the sort of content they can get away with charging for.

Jeff has suggested that there needs to be a sense of duty to buy newspapers, just like there is a sense of duty to vote. But people should only really pay for something that they value, otherwise inefficiencies will result.

If people still value newspapers, they should be willing to pay — and many still are. Most people would feel guilty otherwise, as the honesty box examples suggest. But the problem is that many people just don’t like newspapers any more, as is evident in the comments on Jeff’s post.

It is not as if there is anything wrong with the physical product, despite the jibe about newspapers being “dead trees”. I can imagine a parallel universe where the newspaper was invented after the internet, where the physical paper would be seen as a luxury item. You don’t have to be connected to the internet. You can fold it up and carry it about with you. You can scribble on it if you want to. You can frame it if you love it enough.

But the problem is with the content. With the advent of new technologies, newspapers have become much less useful to consumers. Once, newspapers were almost the only way to find out about the news. Today they are the slowest of many ways to find out the news.

How many times does a major story break late in the day? That story will be all over the breakfast radio and all over the 24 hour news channels. There will be countless reports about it on the internet, and to add insult to injury the bloggers will have had their say too. But if you want to read it in the newspaper, you will have to wait until tomorrow.

Maybe a major story doesn’t break so late very often. But even in these cases, the chances are that you have had ample chance to hear analysis about the front page stories on the radio or the television the night before. In essence, newspapers now do little more than peddle what is literally yesterday’s news.

Like the music industry, the newspaper industry’s mistake was to fail to adapt. They arrogantly assumed that they could carry on with the same template and tinker round the edges, fumbling around for a business model that would work.

Of course, most newspapers have websites these days. But if anything, that has exacerbated the problem. It has led to phenomena like churnalism, with journalists producing more and more content with fewer and fewer resources. As such, much of newspaper websites’ content is watered-down crap. Worse still, much of it is Digg-bait which has been SEOed to death.

That is the crux of the matter. The media is sullied, and journalism as a profession is held in contempt by much of the general public. No wonder people won’t pay for content — it’s not any good, and there is nothing to distinguish it from free alternatives. Why pay to read Telegraph Digg-bait when you can read BBC churnalism for free?

So is there a solution? Keep an eye out for my next article where I will put forward a few suggestions.

Rating: +2
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Current affairs/ Economics/ Internet/ Technology

That spinning woman again

28 October 2007, 16:28

A few weeks ago I blogged about a test that purported to tell you whether you are “right brained” or “left brained”. I have just spotted an update to this on the excellent Freakonomics blog. The smart thing is that they’ve actually done a rough and ready study of the results.

In my original post I said that I had the feeling that the author of the article got confused between the clockwise and anti-clockwise traits. Steven Levitt says he thinks so too.

Seemingly the test was, indeed, a load of bunk.

Rating: 0
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Blogging/ Entertainment/ Internet/ Newspapers/ Technology

Shove your partial feeds up your RSS

12 September 2007, 13:59

(Yes, every post I write about RSS must contain the hilarious “‘RSS’ sounds a little bit like ‘arse’” pun.)

I have a request for those people who publish RSS feeds. Make them full feeds!

I know there is a supposedly a debate about whether partial or full feeds work best. Well, that is not really the right way to put it. Everybody knows that full feeds work better than partial feeds. I mean, it is like saying that a sandwich is better than the crumbs. It’s just obvious.

But some website owners are, for some reason, sniffy about full feeds. Some people publish partial feeds for relatively superficial reasons, for instance because they can’t bear for any readers to be reading it in an environment other than their lovingly handcrafted web page design. Others have more serious suspicions: that full feeds rob them of page views and rob them of advertising revenue.

Earlier this year, the rather good Freakonomics blog moved to The New York Times website. At the same time, the full feeds were snatched away from the blog’s many readers. Apparently, it is NYTimes policy.

Immediately there was an angry reaction from readers. It (mostly) wasn’t from readers concerned about NYTimes itself or even due to the fact that the URLs had changed, that there was an entirely new navigation system to accustomise to, or anything like that. They were almost all from people who were angry that the full feed had overnight turned into a partial feed. Many readers even said they were unsubscribing.

The comments to the initial post were just the start of it. Several subsequent threads descended into similar “outraged of Bloglinesville” mobs, and it has become a recurring topic on the blog ever since. This is one plus side — at least the authors are open about the problems and the reasons why they can no longer offer a full feed.

While I wouldn’t go so far as to get angry, I would guess that I have read a lot less of the Freakonomics blog since the move. This is entirely down to the fact that it no longer offers a full feed.

I am aware that a lot of people simply cannot believe that (or understand why) full feeds generate as many clickthroughs as (or sometimes even more clickthroughs than) partial feeds do. It doesn’t seem to make sense, right? If people can read the entire content without leaving their RSS reader, why on earth would they visit the website?

But it doesn’t work like that. FeedBurner say so — and they would know. To me, it is just common sense. I have been reading RSS feeds for a few years now, so I think I have a pretty good idea of the reasons why partial feeds just do not work.

Think about why people use RSS feeds as opposed to visiting the different web sites all the time. It’s obvious: people who use RSS feeds do so because it makes it easier and quicker to read everything they want to read.

So immediately we have run into the problem with partial feeds — they do the precise opposite of what the reader wants. They make it more difficult and slower to read what you want to read. If you have begun reading and want to read the rest of the content, it involves clicking through and waiting for the (probably bloated) web page to load. It is a needless, unwanted, time wasting, inefficient hassle.

That explains why readers generally don’t like partial feeds. But what about the clickthrough rate? First of all, it is worth pointing out that page views are falling out of favour as a meaningful web metric thanks to the increasing use of Ajax and other kinds of magic. In a funny way, more page views usually means it’s a worse website. (Ask users of MySpace and Facebook about the navigation of those sites, and see which site has the happiest users.)

But let us say that page views (and certainly visits) are a good thing. So why should you use full feeds? Once again, for me it is down to convenience. I use RSS feeds because it allows me to squeeze more reading into a shorter space of time. Imagine sitting there in front Google Reader. You have a list of items waiting to be read. So you get on with it and start scrolling through, scanning for anything interesting.

By now, you may have realised why partial feeds do not automatically generate clickthroughs. It is because there is less of the content for me to scan-read and evaluate. Typically, a partial feed will contain the headline and the first couple of dozen words. This simply is not enough to give me as a reader an idea of how good the rest of the article is. Neither is it long enough for the author to sell the article.

There is one site that falls victim to this more than any other if you ask me. Tim Worstall, one of the most widely-respected British bloggers. His RSS feeds simply do not do his blog justice.

I will sit there with Google Reader and scroll through the many posts he has written that day, and all too often I find myself not being enticed by a single one of them. That is not because they are not interesting. It’s because his partial feeds simply do not give me any confidence that clicking through to read the rest of the post will be worth my time.

If Tim Worstall writes ten posts in a day (which is my conservative estimate of what he averages), he is asking me to read ten summaries, click ten times, wait for ten web pages to slowly load, then read ten full posts. What a waste of time!

This is especially annoying if the partial feed stops in the middle of a sentence, which is almost every time. When the partial feed stops at the end of a sentence, then there is the confusion over whether I had read the full post (just a really short one), or if it was just a fluke that the feed finished in a neat position.

If Tim Worstall provided full feeds in the first place, I could have just read them all there instead of going through all of that hassle. Who knows, I might even have clicked through and left a comment. I might have bookmarked one of his posts in Delicious, letting other people know how good the post is. I might even have blogged about it. I might even have clicked on an advert!

As it is, I just scroll through the summaries and ignore them all. I have, in the past, unsubscribed from his blog because of the frustration over this. I recently subscribed again, but can’t say I read a good deal more of his blog as a result.

Some other blogs provide “summaries” instead of partial feeds. This is where, instead of the first few words of the post, the author has instead specially written a summary designed for the feed. The problem with this is that sometimes it is made up of a random paragraph taken from the middle of the article. Even worse, it might give away the conclusion before I have even read what it was the conclusion for!

If I am enticed by such a summary, I will click through and find myself reading the post and thinking, “This isn’t what I thought I was reading.” Then I will come across that paragraph in the middle. Ah, and that introduction in the summary? I have found out that it was actually a conclusion. It is like forcing somebody to read the last page of the novel before reading the rest of it!

There is another more fundamental reason why people should offer full feeds. It is just plain rude not to. RSS subscribers are your most dedicated readers. They are people who have decided that your content is good enough to have it effectively delivered straight to them on a regular basis.

Yet, how are these dedicated readers paid back? By getting a mangled fraction of the content that they asked for. It is like subscribing to your favourite magazine only to find the publisher sending out cuttings rather than the whole magazine. What a way to treat your regular readers!

I can hear the howls already: “What about all of the beautiful adverts that I have lovingly placed on my blog / newspaper / whatever? If I offer full feeds, nobody will look at the adverts and I won’t make any money!” Again, there are several responses.

I have already explained why full feeds do not lead to a reduction in clickthroughs. So people will see your adverts just as much as they always did.

There is an even more obvious answer: what is stopping you putting adverts on your feed? Plenty of big websites already do this. It is perfectly possible. People who are refusing to offer full feeds because “they don’t contain my adverts” are simply shoving their heads in the sand.

Even if there was a legitimate concern about adverts, it has to be remembered that your regular readers (the sort who would subscribe to your RSS feed) are the very people who are the least likely to click on the adverts anyway.

Let us not forget also that a lot of adverts are not even designed for human eyes as much as they are designed for SEO. These kinds of adverts would not even mind not being seen (just as long as Googlebot sees it).

Maybe you are concerned about stats. Let’s face it, as bloggers we all are. We want to know how many people are reading. What would be the point if you had no way of knowing if people were reading or not. Gordon McLean (whose recent post on RSS is an interesting read) falls into this group.

Admittedly, this is one downside to RSS as it becomes impossible to find out precisely how many people are reading. Mind you, web stats are not generally the most reliable things anyway. Run four different stats counters and you are bound to get four different — sometimes wildly varying — figures. RSS further muddies the waters.

As it happens, I recently moved over to having this blog’s feeds provided by Feedburner (combined with the absolutely vital FeedSmith WordPress plugin), partly because it would give me some fairly accurate (but not precise) statistics. I was pleasantly surprised to find that around 140–150 people are subscribed to this blog. (Hello to you good people. I hope you are enjoying the full feed!)

Beforehand I had vague ideas of who was reading this blog’s webpages and why. But I had no idea of how many people were actually subscribed to this blog’s RSS feed. But now I do have some fairly interesting and meaningful stats about my RSS feed. So even the stats issue with RSS feeds is resolved to an extent.

All of this is not to say that partial feeds do not have their place. For instance, they are perfect for news websites. This is because of the way they work. We are used to just scanning through a front page containing only a headline and a (very) brief summary of each story. From here we choose which stories we want to read. This is how news websites work, and partial feeds can reflect this.

Blogs, however, do not work in this way. Very few blogs offer just a summary of each post on the front page. The blog format does not usually lend itself well to this approach. Rather, the vast majority of blogs’ front pages contain either the full content of the most recent posts, or at least a huge chunk of them.

As far as I can see, there is no reason why the vast majority of web sites should be forcing their most dedicated users to put up with shoddy, sub-standard partial feeds. For me, the fears that website owners have surrounding full feeds are mostly unfounded.

Rating: 0
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Current affairs/ Economics/ Entertainment/ Formula 1

Paperback shiter

16 August 2006, 20:30

Do publishers deliberately give paperback re-issues of their books covers that are uglier than the hardback edition?

Two books that I have been interested in recently both have really skanky paperback covers, but quite nice hardback customers.

Freakonomics hardback cover
Freakonomics hardback cover
Freakonomics paperback cover
Freakonomics paperback cover
Working the Wheel hardback cover
Working the Wheel hardback cover
Working the Wheel paperback cover
Working the Wheel paperback cover

Given that paperbacks are supposedly used because they cost publishers less to produce, surely it is counter-productive to go to the cost of designing a new cover — particularly when you already have a perfectly good design.

Perhaps designing these ugly covers could be a method of shaming people into buying the more expensive hardback editions, even after they’ve waited for the paperback to come out? Or am I thinking too much along the lines of Freakonomics?

Rating: 0
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