MGEITF 2009: News Corp’s paywalls not the answer

Former Endemol chairman Peter Bazalgette believes that the online content provided by the Sun and Times will be unlikely to make money for News Corporation once paywalls are erected around it.

However, speaking at the MediaGuardian Edinburgh International Television Festival, Bazalgette said that people are willing to pay for unique content of the kind provided by the Financial Times or Wall Street Journal, or for titles online with a monopoly, like a local newspaper serving a distinct community.

Rupert Murdoch announced at the start of August that News Corp intended to charge for access to its newspaper sites.

In a session looking at how to make money from online, the general view was that Murdoch will not be able to turn back the tide of free content, with the Guardian’s Emily Bell saying that his “idea that the internet will change for him is very quaint”.

Kristian Segerstrale, chief executive officer and co-founder of social online gaming firm Playfish, added: “It’s not his choice – people will either pay or they won’t.”

If users are not going to pay for content, then what are the other options? Looking at online video, Bazalgette said that he was “a lot more convinced by advertiser supported content than micropayments. TV has always been free and it’s been supported by ads. It shouldn’t be that difficult to do it online”.

He added: “In the future we’ll buy content online with two commodities – attention [on advertisements] and personal details.”

However, Segerstrale said that one of the problems with online advertising is that “it is either disruptive or it is peripheral to the reason you are there”.

He pointed out that engagement is key when asking users to pay for digital commodities, particularly in social environments. “If people love something and are engaged then they are willing to pay for things,” he said. “If you create enough opportunities [in these environments] then people are happy to pay.”