Cashing In Online

The internet, arguably the most powerful phenomenon of this century, turned 40 this year. The much older phenomenon of news has been watching this with considerable interest. And it has begun cashing in, online.

On Sunday, media mogul Rupert Murdoch announced that all his news websites would charge customers for access to content. The huge losses his empire recorded might have had much to do with the shake up, but the News Corp CMD nailed the debate when he said, "Quality journalism is not cheap, and an industry that gives away its content is simply cannibalising its ability to produce good reporting." He also added that if he were successful other media houses would follow suit. Coming from Murdoch, it almost sounds prophetic.

The Financial Times predicted that all news agencies will begin charging for online content within the next year. The only point of discussion now is whether they should charge per month or per article.

Typically, the online subscriber base of a medium-sized publication is less than 5 per cent of their print counterparts. And a publication that begins charging online for the first time loses a considerable chunk of its website traffic initially. However, the trend can be bucked. A combination of innovative pay models and aggressive updating and differentiation of content will boost subscriber base. And a popular online edition tends to protect the sale of their print editions as well.

Again, the key is constant innovation. The look and content of a print edition will be defined to a great extent by tradition. This cannot be banked on online. The immediate online target audience of an age group that can be sustained only if content is packaged in an interactive multimedia capsule.

The internet is no longer simply another space for media houses to stake a claim and record a presence. While it has opened inexpensive channels of distribution, “it has not made content free,” another pearl from Murdoch. If content goes online, the price tag does, too.