Computer and Library Learning (Archived)

The
trend to online publications through access with paid subscriptions continues
with the announcement that the venerable 80-year magazine Newsweek is switching to
an all-digital format in January 2013 with the final print edition scheduled
for December 31, 2012. The
digital-only publication will be called Newsweek Global and most content
will be accessible through a paid subscription, although Newsweek’s partner
website, The Daily Beast, would make
certain stories accessible free of charge. Newsweek had been selling more
than 3 million copies per year between 1989 and 2007 but circulation had been
cut to 1.8 million in 2010 when the
Washington Post sold Newsweek for $1 and circulation dropped even further in
2011 to 1.5 million.

The
trend towards more metered paywalls on the Internet continues with the recent
announcements by the Globe and Mail, Postmedia Network Inc., and the Toronto
Star to begin charging for online content as a means of tapping into additional
revenue sources. The
Globe and Mail announced on October 15, 2012 that its metered payment system
would begin on October 22, 2012. As a result, most print subscribers (those
with 5- or 6-day subscriptions) receive free online access and casual,
occasional readers have the opportunity of accessing 10 articles per month on
the Globe and Mail website without paying. Weekend-only subscribers have the
option of paying $4.99 per month for unlimited access to the website’s content.
Those without a print subscription can access unlimited website content for
$19.99 per month, following a 1-month 99 cent trial period. Certain aspects of
the website remain free to all such as watching videos, obtaining stock
quotations, and reading letters to the editor. Non-subscribing readers who find
Globe and Mail articles through social media sites, search engines, and blogs
will not have those articles count toward their free monthly quota.

John
Cruickshank, publisher of the Toronto Star, Canada’s largest circulation
newspaper, announced on October 29, 2012 that the
Toronto Star would be launching a paywall for access to full content on the
Toronto Star website beginning in 2013. Most print subscribers will receive
free access to full content on the website. Mr. Cruickshank noted that readers
will see more stories, podcasts, videos, and interactive social media on the
enhanced website. He acknowledged the need for the Toronto Star to generate
digital subscription revenue to supplement current print and online circulation
and advertising revenue sources.

Postmedia Network Inc. already has metered paywalls
in place at the Montreal Gazette, Vancouver Sun, Vancouver Province, and the
Ottawa Citizen. With a recent $28 million third quarter loss, Postmedia
announced its intention to introduce paywalls on its remaining newspapers,
including the National Post, early in 2013. Print advertising revenue
declined by 8.3% or $10 million to $112 million, while digital revenue
increased by 3.5% or $700,000 to $22 million. Only a few newspapers worldwide
have made profit using paywalls. However, the example held up as the one to
emulate is the New York Times that saw its number of digital subscribers increase
by 11% in the last quarter. The New York Times was also able to offset a drop in
print advertising revenue with increased revenue from its paywall. Ken Hanly, writing on digitaljournal.com, emphasized the
context of newspaper operations by noting that the New York Times is read
worldwide while most Postmedia newspapers are read locally, and offered the
opinion that a newspaper such as the New York Times might benefit from a
paywall as online readers commit to reading a prominent newspaper as a news
source of choice.

What do you think? It will be worth exploring the
issues of digital-only publications and paywalls for online content associated
with print publications again in 2013 and beyond.

(See also: The Rise and Fall (and Rise and Fall?)…of the
Paywall)