I saw the editorial in Time Magazine by Walter Isaacson about how to save newspapers.
Basically the premise is that newspapers are going under, or cancelling out “good journalism” to save money because fewer and fewer are buying the physical papers but reading the content online for free.
His solution is to get people to pay “micropayments” for reading news-material on the web, a small cost per article or something like that.
Now granted, I agree with him on a number of situations, but I question the methods.
Yes, journalists must be paid to do journalistic work. Naturally.
Yes, newspapers are currently too depending on advertisement companies then their reader because their revenue comes from advertisement. This can create a conflict of interests.
But that’s about as much in agreement as I can be.
I see many problems with starting to charge for online reading of news.
1) It only takes one of two companies to shoot down everybody else. If a few companies doesn’t charge for their content, then people will just go to the free alternatives and leave behind the ones you have to pay for. This is how most online services have worked.
2) Legality. If everybody starts charging, then I’m all but sure that several “gray” providers will pop up. It happens with everything online and it is a problem, but it is also a reality. Gaming, Music and Movie industry suffers from this. Some people spend their free time ripping off content providers and posting it up for free. That would open up for a whole can of “allofmp3” or “piratebay” problems. Charging for content opens up for those doors and the cost of keeping your content yours might prove way to high to be cost-effective.
3) By charging (more) for content, people will likely stop reading a multitude of different providers.
Personally- when I bought newspapers I read perhaps two at the most. Now when I read news online, I read about 8 different news sites. This provides me with a better chance of getting an unbiased picture of events and forming my own opinion. If I were to be charged for the content, I doubt I’d read more than a couple again.
And anybody who’ve seen Fox News for example, knows how unbiased “news” providers can be. I think it’ll hurt.
Now granted, this is also a risk under the current model cause if many providers go bankrupt, you are faced with fewer avenues through the physical medias, but that still mean there are free alternatives online.
4) By charging, you start implying that only those who can afford it, are allowed to read the news coverage. It can quickly create a divided segment where those who can’t afford to go through multiple sites either as in item 3) sticks with 1 or 2 or none at all.
5) Journalism will be much more entertainment then news. One of the arguments was to make journalists dependant on the readers and not the advertiser. Well nice and idealistic goal, but what do we usually see when a content provider becomes depending on its subscribers. Much more populism and sensationalism. It becomes content for entertainment and not enlightenment. These companies will want to attract most people, and well – unfortunately that usually means catering to the lowest common denominator. That will counter the “good journalistic principles” it was meant to promote.
6) Country barriers. If providers start charging online, then they must remember that it is global. I read occasionally US and UK news sites. If I were to pay, would I be allowed to? Or will it be like iTunes where I can only buy from my local store and not from the US or UK store?
The web is global, and the world is as well. But payments aren’t always.
7) Nationally subsidized alternatives. In this country – and many others – we have national supported, public service, channels we already pay for – either via taxes or license fee. Payment we can’t avoid. If we also were to start paying, or pay more, for other content providers, we’re back in item 4. People will leave them behind because they can get their news coverage from the public service channels. It will be a problem for competition.
Now, I do not have the answers – but I would think the way forward would be to offer a split plan. Subscription and free. Subscribe if you want to know more, more in depth articles, forums to talk to the editors and journalists and so on – but keep some content free, if nothing else to lure people into it.
Otherwise it’ll start to spell doom for the majority of content providers in a state we haven’t seen yet. Look at the music industry and how well it fares because they have problems adjusting to a global and intangible reality of the internet – and that is a more physical product which you can keep and take with you. News is much more intangible and fleeting.
Micro transactions on its own? I think it’ll be a big step in bring the industry all the way down, or weed out so we have one or two mega-corporations.