Here is another try at making newspapers viable again:
More Than 100,000 Pay for British News Site
By ERIC PFANNER
Published: November 2, 2010
The News Corporation said on Tuesday that it had gained 105,000 paying customers for the digital versions of The Times and The Sunday Times of London since it started charging for access to their Web sites this summer.
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Chris Ratcliffe/Bloomberg News
The Times and The Sunday Times of London began charging for access last June, and lost fewer visitors than they had expected.
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The company said about half of those additions were regular, active subscribers to the newspapers’ Web sites, iPad application or Amazon Kindle edition. The rest were occasional purchasers. Another 100,000 readers have activated free digital accounts that are included in print subscriptions to the papers, the News Corporation said.
The company’s initiative has been closely watched among media analysts and advertisers because The Times and Sunday Times are among the first prominent general-interest newspapers to start charging for their digital content. Other newspapers are also moving to introduce paid services as online advertising falls short of publishers’ hopes that it might someday replace dwindling print ad revenue.
“These figures very clearly show that large numbers of people are willing to pay for quality journalism in digital formats,” said Rebekah Brooks, chief executive of News International, the London-based arm of the News Corporation that publishes The Times papers.
The News Corporation already charges for access to The Wall Street Journal. The company, controlled by Rupert Murdoch, also moved another British newspaper, the tabloid News of the World, behind a pay wall.
The conventional wisdom among media analysts has been that it will be difficult to persuade readers to pay for general news online, given the panoply of free news available on the Web.
But, some specialty publications in areas like business and finance have had modest success with paid access.
The Financial Times, for example, says it has attracted 189,000 paying customers for its Web site, which uses a metered model, giving online readers a limited number of free articles every month before charges kick in.
The New York Times, which also publishes The International Herald Tribune, has said it plans to take a similar approach when it begins charging for its Web site next year.
When the News Corporation switched to a paid model, the company estimated that the number of visitors to The Times and Sunday Times Web sites would drop by 90 percent. In fact, traffic appears to have fallen by somewhat less. Nielsen, the media audience measurement agency, said last week that the average number of monthly unique visitors to the newspapers’ Web sites from Britain had fallen by 42 percent, to 1.78 million, in the third quarter, after the charges were instituted.
Many of those visitors do not go beyond the home pages.
But the News Corporation has said the newspapers will benefit despite drawing smaller audiences, because they can sell more focused advertising, as well as generate new revenue from subscribers.
Jim Chisholm, a newspaper consultant in Lille, France, said the News Corporation’s announcement left a number of questions for advertisers unanswered, including the amount of time that users were spending on the sites.
“Much as we all want newspapers to succeed and make money, in a market as rough and crowded as the U.K., The Times pay wall was always going to be a tall order,” he said.
Another question is what effect the charges are having on the print editions of The Times and Sunday Times. Paid circulation of the daily paper fell about 3 percent from June through September, to about 487,000, while sales of the Sunday paper rose by about half of 1 percent, to nearly 1.1 million.
Analysts say the move to paid-for Web sites could also open up other possibilities for the News Corporation, including bundled sales of online access with subscriptions to British Sky Broadcasting, a pay-television service with 10 million customers. The News Corporation owns 39 percent of Sky and has proposed buying full control.
A version of this article appeared in print on November 3, 2010, on page B3 of the New York edition.
By JEREMY W. PETERS
Published: September 5, 2010
Daniel Rosenbaum for The New York Times
The Washington Post newsroom displays traffic data. Raju Narisetti, a managing editor, said it helped to decide where to cut staff.
Now, because of technology that can pinpoint what people online are viewing and commenting on, how much time they spend with an article and even how much money an article makes in advertising revenue, newspapers can make more scientific decisions about allocating their ever scarcer resources.
Such data has never been available with such specificity and timeliness. The reader surveys that newspapers relied on for decades took months to produce, often leaving editors with stale data.
Looking to the public for insight on how to cover a topic is never comfortable for newsrooms, which have the deeply held belief that readers come to a newspaper not only for its information but also for its editorial judgment. But many newsrooms now seem to be re-examining that idea and embracing, albeit cautiously, a more democratic approach to serving up the news, particularly online.
“How can you say you don’t care what your customers think?” asked Alan Murray, who oversees online news at The Wall Street Journal. “We care a lot about what our readers think. But our readers also care a lot about our editorial judgment. So we’re always trying to balance the two.”
Editors at The Journal, like those at other large newspapers, follow the Web traffic metrics closely. The paper’s top editors begin their morning news meetings with a rundown of data points, including the most popular search terms on WSJ.com, which articles are generating the most traffic and what posts are generating buzz on Twitter.
At The Washington Post, a television screen with an array of data — the number of unique visitors to washingtonpost.com, how many articles those visitors view and where on the Web those visitors came from — is on display for the entire newsroom. A red or green marker designates each data point, indicating whether the Web site’s goal for the month on that particular metric has been met. About 120 people in The Post’s newsroom get an e-mail each day laying out how the Web site performed in the closely watched metrics — 46 in all.
Rather than corrupt news judgment by causing editors to pander to the most base reader interests, the availability of this technology so far seems to be leading to more surgical decisions about how to cover a topic so it becomes more appealing to an online audience.
The Post, which provided extensive coverage of the recent elections in Britain online and in its print editions, found that online readers were not particularly interested in the topic. One of the five most viewed items on The Post’s Web site in the last year, in fact, was not a political project at all but a piece on Crocs, the popular foam footwear. Editors attributed that to Yahoo, which linked to the article.
But that did not translate into more Croc coverage. And coverage of the British elections was not scaled back.
Raju Narisetti, The Post’s managing editor overseeing online operations, said he saw reader metrics as a tool to help him better determine how to use online resources.
“We ask, ‘What can we do online to make it more attractive?” ’ Mr. Narisetti said. “Can we do podcasts? Can we do a photo gallery? Can we do any kind of user-generated content?”
He said the data has proved highly useful in today’s world of shrinking newsroom budgets. Mr. Narisetti said that when he had to reduce his staff last year, he looked at what kind of content was not performing well with readers. He discovered that long-form video had a low audience, so he reduced that department by a couple of people.
At The Journal, editors use traffic data to inform decisions on how articles should be presented on WSJ.com. “We look at the data, and if things are getting a lot of hits, they’ll get better play and longer play on the home page,” said Mr. Murray. Conversely, articles getting low audiences will be moved down more quickly if there is no compelling news reason to keep them prominent.
But Mr. Murray explained that the data was not always used as a blunt tool. In the case of a rather dry business development last month involving the Potash Corporation, the Canadian fertilizer maker, Journal editors decided to prominently display articles on the subject despite very low traffic numbers.
“We didn’t put it there because it was going to be a big traffic getter. We put it there because it’s big important news in the business world,” Mr. Murray said.
The New York Times does not use Web metrics to determine how articles are presented, but it does use them to make strategic decisions about its online report, said Bill Keller, the executive editor. “We don’t let metrics dictate our assignments and play,” he said, “because we believe readers come to us for our judgment, not the judgment of the crowd. We’re not ‘American Idol.’ ”
Mr. Keller added that the paper would, for example, use the data to determine which blogs to expand, eliminate or tweak.
As newspaper Web sites use technology to learn more about readers’ habits, they are also developing new ways to persuade readers to tell them more about what they want. The Los Angeles Times features what it calls a “personality quiz” for readers on its Web site. The feature adds a spin to the personalization options that Web sites have offered for the last few years with a 17-question test that asks readers things like “What does success mean to you?” and has them pick from 12 photos. A few options include images of a wedding, a gleaming sports car and a man embracing a peasant child.
At the end of the quiz, readers are assigned a personality type like “dynamo,” who, as the quiz explains, is someone “always seeking new adventures that broaden your horizons and take you out of your comfort zone.” A customized news feed then appears each time a reader visits the Web site from the same computer.
“It helps me understand the readers in a way that I can’t with just the metrics,” said Sean Gallagher, managing editor for online operations at The Los Angeles Times, explaining that he now pairs sports articles with food articles because surveys have shown a correlation.
As the technology advances and allows papers to look more deeply at performance metrics, newsrooms may find that there is just some data they would rather not know.
At a recent meeting with the top online editors of The Los Angeles Times, a consulting group that helps media companies enhance profits from their Web sites pitched new software that it said could change the industry. The newsroom would be able to know how much money — down to the penny — each of its articles online was making when readers clicked on ads.
“I could see a business case for it,” said Mr. Gallagher, who hastened to add, “I don’t agree with that business case.”
Software developers acknowledge that the questions can be difficult as newspapers try to reinvent their business models. But they say the dialogue is ultimately constructive.
“By having this data and making it available, we’re spurring the conversations to take place,” said Tim Ruder, chief revenue officer for Perfect Market, the company that developed the tracking software for ad clicks. “And it’s especially healthy to have those conversations in the context of experience and not in an abstract way.”
Such data has never been available with such specificity and timeliness. The reader surveys that newspapers relied on for decades took months to produce, often leaving editors with stale data.
Looking to the public for insight on how to cover a topic is never comfortable for newsrooms, which have the deeply held belief that readers come to a newspaper not only for its information but also for its editorial judgment. But many newsrooms now seem to be re-examining that idea and embracing, albeit cautiously, a more democratic approach to serving up the news, particularly online.
“How can you say you don’t care what your customers think?” asked Alan Murray, who oversees online news at The Wall Street Journal. “We care a lot about what our readers think. But our readers also care a lot about our editorial judgment. So we’re always trying to balance the two.”
Editors at The Journal, like those at other large newspapers, follow the Web traffic metrics closely. The paper’s top editors begin their morning news meetings with a rundown of data points, including the most popular search terms on WSJ.com, which articles are generating the most traffic and what posts are generating buzz on Twitter.
At The Washington Post, a television screen with an array of data — the number of unique visitors to washingtonpost.com, how many articles those visitors view and where on the Web those visitors came from — is on display for the entire newsroom. A red or green marker designates each data point, indicating whether the Web site’s goal for the month on that particular metric has been met. About 120 people in The Post’s newsroom get an e-mail each day laying out how the Web site performed in the closely watched metrics — 46 in all.
Rather than corrupt news judgment by causing editors to pander to the most base reader interests, the availability of this technology so far seems to be leading to more surgical decisions about how to cover a topic so it becomes more appealing to an online audience.
The Post, which provided extensive coverage of the recent elections in Britain online and in its print editions, found that online readers were not particularly interested in the topic. One of the five most viewed items on The Post’s Web site in the last year, in fact, was not a political project at all but a piece on Crocs, the popular foam footwear. Editors attributed that to Yahoo, which linked to the article.
But that did not translate into more Croc coverage. And coverage of the British elections was not scaled back.
Raju Narisetti, The Post’s managing editor overseeing online operations, said he saw reader metrics as a tool to help him better determine how to use online resources.
“We ask, ‘What can we do online to make it more attractive?” ’ Mr. Narisetti said. “Can we do podcasts? Can we do a photo gallery? Can we do any kind of user-generated content?”
He said the data has proved highly useful in today’s world of shrinking newsroom budgets. Mr. Narisetti said that when he had to reduce his staff last year, he looked at what kind of content was not performing well with readers. He discovered that long-form video had a low audience, so he reduced that department by a couple of people.
At The Journal, editors use traffic data to inform decisions on how articles should be presented on WSJ.com. “We look at the data, and if things are getting a lot of hits, they’ll get better play and longer play on the home page,” said Mr. Murray. Conversely, articles getting low audiences will be moved down more quickly if there is no compelling news reason to keep them prominent.
But Mr. Murray explained that the data was not always used as a blunt tool. In the case of a rather dry business development last month involving the Potash Corporation, the Canadian fertilizer maker, Journal editors decided to prominently display articles on the subject despite very low traffic numbers.
“We didn’t put it there because it was going to be a big traffic getter. We put it there because it’s big important news in the business world,” Mr. Murray said.
The New York Times does not use Web metrics to determine how articles are presented, but it does use them to make strategic decisions about its online report, said Bill Keller, the executive editor. “We don’t let metrics dictate our assignments and play,” he said, “because we believe readers come to us for our judgment, not the judgment of the crowd. We’re not ‘American Idol.’ ”
Mr. Keller added that the paper would, for example, use the data to determine which blogs to expand, eliminate or tweak.
As newspaper Web sites use technology to learn more about readers’ habits, they are also developing new ways to persuade readers to tell them more about what they want. The Los Angeles Times features what it calls a “personality quiz” for readers on its Web site. The feature adds a spin to the personalization options that Web sites have offered for the last few years with a 17-question test that asks readers things like “What does success mean to you?” and has them pick from 12 photos. A few options include images of a wedding, a gleaming sports car and a man embracing a peasant child.
At the end of the quiz, readers are assigned a personality type like “dynamo,” who, as the quiz explains, is someone “always seeking new adventures that broaden your horizons and take you out of your comfort zone.” A customized news feed then appears each time a reader visits the Web site from the same computer.
“It helps me understand the readers in a way that I can’t with just the metrics,” said Sean Gallagher, managing editor for online operations at The Los Angeles Times, explaining that he now pairs sports articles with food articles because surveys have shown a correlation.
As the technology advances and allows papers to look more deeply at performance metrics, newsrooms may find that there is just some data they would rather not know.
At a recent meeting with the top online editors of The Los Angeles Times, a consulting group that helps media companies enhance profits from their Web sites pitched new software that it said could change the industry. The newsroom would be able to know how much money — down to the penny — each of its articles online was making when readers clicked on ads.
“I could see a business case for it,” said Mr. Gallagher, who hastened to add, “I don’t agree with that business case.”
Software developers acknowledge that the questions can be difficult as newspapers try to reinvent their business models. But they say the dialogue is ultimately constructive.
“By having this data and making it available, we’re spurring the conversations to take place,” said Tim Ruder, chief revenue officer for Perfect Market, the company that developed the tracking software for ad clicks. “And it’s especially healthy to have those conversations in the context of experience and not in an abstract way.”
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