|
| Media firms can increase profit by charging for online news |
| Press Trust of India / New Delhi Nov 18, 2009, 18:34 IST |
|
Global media firms can counter effects of advertising slump if they start charging for online news, a study by The Boston Consulting Group (BCG) says.
According to the research, consumers are willing to spend small monthly sums to receive news on their personal computers and mobile devices.
"The good news is that, contrary to conventional wisdom, consumers are willing to pay for meaningful content. The bad news is they are not willing to pay much.
"But cumulatively, these payments could help offset one to three years of anticipated declines in advertising revenue," BCG senior partner (global media sector leader) John Rose said.
The survey found that consumers are more likely to pay for online news provided by newspapers than by other media, such as television stations, websites, or online portals, the study revealed.
In addition, consumers were more likely to pay for certain types of content, specifically news that is unique, such as local news, with 67 per cent overall respondents being interested and about 72 per cent of US respondents.
Moreover, specialised coverage was also considered by 63 per cent overall respondents which can be paid for along with timely (such as a continual news alert service) coverage.
Besides, the news which can be conveniently accessible on a device of choice also found favour with respondents.
However, they are specifically not interested in paying for news that is routinely available on a wide range of web sites for free, it added.
The BCG survey of 5,000 individuals conducted in nine countries 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.
National and local newspapers, which have content not available elsewhere, can take advantage of these trends, while major metropolitan daily newspapers would likely struggle, the survey said.
It suggested that several hybrid models for accessing news and content would emerge. For example, 52 per cent of US consumers of business news would be interested in a bundled print-and-online subscription, compared with just 35 per cent of young consumers.
"Newspapers should be experimenting with paid online content. It will take trial and error to find what works," the report added.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
Content Guide
