Most newspaper internet operations around the world expect to be charging visitors within the next five years, according to research carried out for the World Association of Newspapers (WAN). However, the study also found that those sites which already charge are not necessarily more profitable than those which rely solely on advertising revenue, nor do they necessarily have less visitors.
“Re-examining the Web Business Model” studied over 400 newspaper web operations in a global internet survey of publishers, editors and managers. It found that, at present, five out of six newspaper web operations do not charge visitors, relying on advertising income instead. However, half of them expect to be charging visitors within one year, and six out of seven expect to be charging five years from now.
Timothy Balding, director general of WAN said: “Newspapers are re-examining the advertising-based business model on which most web operations have been developed. This study reveals clearly that a major shift in strategy is underway.”
The study, conducted by Innovation International, also found that the revenues of most web operations have been growing, despite the poor economic climate of the past 12 months; that sites which currently charge visitors generally do so for specific content and services and not for access; that few sites have yet to exploit the potential for e-commerce and that most web operations are run on very small budgets.
The question of charging for web content is thought to be under continuing consideration by the UK press. The Times announced plans to begin charging for content last year (see Times Online To Charge Users), which was expected to prompt others including the Financial Times and the Guardian to follow suit.
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