Newspaper paywall early numbers dismal as visitors flee fees
Struggling newspapers like The Greenville News following the Rupert Murdoch “paywall” idea are likely sharing in his lessons learned. As reported by Editor & Publisher, The Times of London has reportedly seen two thirds of its Internet traffic disappear as its readers flee to fee-free news providers. The dismal Internet traffic report is compounded by a loss of 58% of its traffic in the weeks leading up to the transition to a fee-based format. Internet traffic is expected to erode even further after introductory half-price fees expire at the end of the month.
The Greenville News paywall attempts to hold-up visitors for their cash.
In light of predictions that internet traffic would fall by up to 90% after paywall implementation, some newspaper paywall proponents are actually proclaiming these dismal numbers as a sign of success.
Many newspapers have not adapted to the computers & Internet revolution that changed the way people get their news and have suffered with declining revenues that have forced layoffs across the industry. Newspapers need to increase revenue from their online editions to compensate for declining subscribers. Already maxed out on internet advertising, the switch to a paywall format is seen as a desperate move for survival. As the reported numbers prove, internet users do not want to pay to get their news.
Perhaps worse than the Murdoch attempt to monetize newspaper Web site traffic beyond advertising is how his attempt has influenced other newspapers to follow suit. The Greenville News is just one example of a local newspaper with shrinking influence trying to pay its bills by selling its online content. As in the case of The Times of London, users look for news at other local Web sites rather than paying subscription fees for online access.
The dilemma for newspapers is exacerbated because they continue to rely on traditional online advertising displayed once a subscriber gets inside the paywall. This results in even lower advertising revenue because the newspaper paywall has eliminated more two thirds of the internet traffic it needs to click on ads.
A “paywall” operates like a firewall by governing access to a Web site excepts the filter is based on paid fees rather than traditional network metrics.
Many industry experts believe that fee-based news will not be viable unless the majority of quality news providers transition to a paywall system.
