FT’s content revenues to overtake print ad revenues in 2010
The Financial Times content revenues are set to overtake print ad revenues for the first time this year, according to the group’s chief executive John Ridding.
The paper is expected to witness a landmark year due to cover price rises, an increase in online subscribers and corporate clients, Ridding said.
“In some of the key areas we are at a crucial stage of transformation, so that we reckon next year will be the first year that revenues from content overtake revenues from print advertising,” he said. “The way things are evolving, content revenues should overtake all advertising revenues by 2012.”
Ridding claims the change supports the Financial Times‘ charging model, which was introduced in 2006 despite skepticism from the industry.
“But because of the decisions we took in 2006 in terms of changing the business models and developing content revenues, that has definitely strengthened us and made us in a stronger position than we would have been and than many of others are in,” he added.
Last year, FT circulation revenues were up despite a decline in print circulation. FT.com online subscriptions increased by 30% over the year, with readers from around the world wanting to be updated on the latest financial news amid the on-going recession.
Ridding admitted that it is “easier” for the FT to generate online revenue as it charges for specialist business stories and analysis, however, he said: “I don’t think anyone can afford to dismiss the idea of developing paid-for content because journalism is valuable.”
Many of the FT’s subscribers are businesses rather than individual readers so the shift in balance between the title’s content and ad revenues is expected to be “an exception” in 2010, according to Deloitte’s media expert Paul Lee.
However, Lee said it is still “significant” for the industry “in that it is reaffirming there is life beyond advertising for online publishing”.
The FT is currently working with Pricewaterhouse Coopers to work out an average daily global readership figure along with a total daily paid-for circulation figure. The new figures are expected to be made available quarterly and will include ABC and ABCe figures.