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AP Considers Making Content Require Payment

TechDirt is reporting that the Associated Press is poised to be the next in a long line of news organizations to completely bungle their online distribution methods by making their content require payment. While this wouldn't happen for a while due to deals with others, like Google, to distribute AP content for free, even considering this is a massive step in the wrong direction. "Also, I know we point this out every time some clueless news exec claims that users need to pay, but it's worth mentioning again: nowhere do they discuss why people should want to pay. Nowhere do they explain what extra value they're adding that will make people pay. Instead, they think that if they put up a paywall, people will magically pay -- even though the paywall itself is what takes away much of the value by making it harder for people to do what they want with the news: to spread it, to comment on it, to participate in the story. Until newspaper execs figure this out, they're only going to keep making things worse."

31 of 425 comments (clear)

  1. Well... by palegray.net · · Score: 4, Insightful

    Advertising revenues continue to plunge for many sites these days, a trend I've felt myself for the few small sites I run that are ad-supported. I'm going to be deploying a "paid content" option myself for my main site in the near future, although I'm still planning on offering everything for free as long as people are willing to deal with the ads.

    It's a difficult position to be in. Offering and maintaining content costs real money in time and resources.

  2. And I'd like a pony. by mcmonkey · · Score: 4, Insightful

    Nowhere do they explain what extra value they're adding that will make people pay. Instead, they think that if they put up a paywall, people will magically pay

    And where do these stories come from? Who pays the reporters? Who keeps the servers running to deliver these stories?

    Forget the "extra value," what about the existing value? And if people won't pay for news on the web, then the services should keep providing news for free? I don't think it's a case of they expect people to magically pay if they put up a paywall, it's that they know people won't pay if they don't, no magic required.

    Seriously, is this guy running for d-bag of the year? The world does not owe you free content. If the people who, you know, actually work for a living, want to get paid, then so be it. If you refuse to pay, you weren't doing them any good reading their content for free, so they won't miss you when you when you're gone.

    1. Re:And I'd like a pony. by Anita+Coney · · Score: 4, Insightful

      "And where do these stories come from? Who pays the reporters? Who keeps the servers running to deliver these stories?"

      Who pays for the news broadcasts on NBC, ABC, and CBS?! Who pays the anchors, the journalists, and the cameramen? Who pays for your local news broadcasts?

      Let me repeat from an earlier comment I made... Do you seriously think that CBS would make more money on its Evening News with Katie Couric if its stopped broadcasting it for free and made it solely pay-per-view? Think about it.

      --
      If someone says he and his monkey have nothing to hide, they almost certainly do.
    2. Re:And I'd like a pony. by mcmonkey · · Score: 4, Insightful

      Personally, I'd welcome the day when main-stream media outlets die and the only news you get comes from people like you and me, who have are not constrained by our bosses and do not have to be biased in favour of any one entity.

      Oh lord no! Have you read the comments around here lately? No offense to people like you and me, but I'd prefer to get my news from people who know what they are talking about.

      The rest of this comment has me very confused. You think an organization 100% dependant on advertising for income will be less constrained than one getting income directly from readers?

      When you pay for news, you are the customer. When your news is advertiser supported, you are the product being served to the customers, the advertisers. How does that get you back to receiving your public opinion?

  3. Re:News by jetsci · · Score: 4, Funny

    The man IS watching you...through the news he feeds you(it contains tiny microchips with GPS functionality). Consider a diet high in fiber.

    --
    Bored at work? Play Game!
  4. Something that Helen Thomas got right... by ducomputergeek · · Score: 4, Interesting

    I forget the title of the book she wrote, but she was making the point that the problem with the newspapers is that they have cut all the local investigative journalism (because it's expensive), just reprint wire stories that everyone read the day before, and then wonder why no one is buying the newspapers. So in order to combat this, they decide to cut more staff from their newsrooms, buy more wire stories, and continue to shrink into irrelevance.

    My father subscribed to the local major city news paper for 35 years. He remarked how the newspaper had continued to shrink year after year in the past 10 years. Finally they cut out the listing of stocks to just a few blue chips and the bigger local employers and the sports section, which he could read free online. So about a year ago he canceled his subscription and now reads the local sports section online.

    Frankly, there is more local news in the local throw away rag that we get twice a week, free. They seem to be doing okay. Are they raking in millions? No, but they are profitable, keep on top of local issues that you won't find elsewhere and people at least skim the headlines.

    --
    "The problem with socialism is eventually you run out of other people's money" - Thatcher.
  5. Re:There once was a day by catxk · · Score: 4, Interesting

    Free as in..? The free as in beer brought by advertising happens at the cost of free as in freedom. Personally, I prefer a news network that is accountable to its readers rather than to advertisers, and I will gladly pay for it, but hey, maybe that's just me.

    Besides, isn't AP already selling its content to non-owners, i.e. the non-US media?

    --
    Don't be crazy anymore!
  6. I can't wait for headlines like this: by Anonymous Coward · · Score: 4, Funny

    Nukes fly over the city of...[click here to pay via PayPal for full story]

  7. Re:News by Smidge204 · · Score: 5, Insightful

    Well somebody has to pay the reporter's salary and expenses. While you're not likely to see them on the TV or hear them on the radio anymore, real journalists do exist and it is an actual skill people make a career out of.

    Internet advertising is practically worthless. We learned this from the dotcom bust.

    So unless you're okay with "manufactured celebrity/political controversy" or "trite blogging on the latest who-gives-a-shit gadget" being the only news available, they need a viable business model that generates money.

    The alternative is to nationalize the media like they did with the BBC. I'm not entirely sure if that's good or bad, since the BBC is pretty good overall but the thought of government controlled media scares the shit out of me.
    =Smidge=

  8. Re:Its like watching an animal drown by Jeff+DeMaagd · · Score: 4, Insightful

    THAT is the internet. It isn't a series of tubes, it is an amazingly cheap distribution method for media.

    A cheap distribution method doesn't do that much to lower the costs of gathering the news.

  9. Scary by Idiomatick · · Score: 4, Insightful

    This leaves Reuters the only free international newspaper in English. By that I mean a real newspaper with actual foreign correspondents and journalists. How terrifying is the thought that news could be turned 100% into opinion piece blathering with no actual research. As of last june CBS had 0 people in Iraq, FOX and CNN have 2. No American television network has a full-time correspondent in Afghanistan. Reuters has 100people in Iraq (inc staff). I'm sure AP has a similar number.

    If AP and Reuters go this way news is literally dead.

  10. Re:News by i_ate_god · · Score: 5, Insightful

    We didn't learn that there is no value in internet advertising from the dotcom bust. We learned that that not every imaginable service in the service industry needs an online presence.

    --
    I'm god, but it's a bit of a drag really...
  11. Remember CNN.com? by ZDRuX · · Score: 4, Insightful

    Anybody remember when CNN.com used to have videos that you'd have to pay for to view?! Then nobody actually paid and they realized the better way to drive traffic is to provide them totally free of charge? I know I visit cnn.com more often now because of it. Why aren't things like these noted and written down somewhere so nobody goes through this again?

    --
    The magical number is: 09 F9 11 02 9D 74 E3 5B D8 41 56 C5 63 56 88 C0
  12. Before I *consider* paying... by jerky42 · · Score: 4, Interesting

    I would want to know the length and depth of the article, and a summary of exactly what the article will cover.

    So, a free 1 paragraph summary, with word count, and a depth rating (1 for glossover, 5 for deep technical dive, perhaps). No crummy misleading headlines, and it would also have to have a "reused/rehashed" rating, to determine how much is just a recap of old news. These ratings would need to be done by a 3rd party, or would need to be a summary of the article reader feedback, with no way for the news producer to manipulate them.

    I also want permanent access to it, to be part of my "pool" of information that I have purchased, so I can refer to it whenever I like. Oh, and no blocking of print, or cut&paste. No funky formats or DRM, to prevent media/device shifting. A workable micropayments system also would be necessary, not some junk like paypal.

    So once you have that ready, let me know.

    --
    The strong do what they can, while the weak suffer what they must.
  13. Re:There once was a day by winkydink · · Score: 4, Funny

    Hey - what color is the sky on this planet where news networks are accountable to their readers?

    --

    "I'd rather be a lightning rod than a seismometer." -Ken Kesey

  14. The editorial on this article is dull and pointles by Maudib · · Score: 4, Interesting

    While the story is interesting your editorializing is much less so. There are a number of very news organizations that have been very successful with a payment/subscription model. Two great examples: The Wall Street Journal and ESPN. In fact there was an op-ed in today's WSJ about this very subject. When companies have a news product that is unique in the marketplace, then the payment model is quite successful.

    Examples given-
    WSJ
    Bloomberg
    Lexus-Nexus
    ESPN

    While it is true that some news providers might not actually offer anything sufficiently distinct or special to make a charge model successful, some definitely do. This assertion "Until newspaper execs figure this out, they're only going to keep making things worse." is borne out by neither reality nor common sense. If your content/service is unique and in demand, you can charge. The AP's content may very well be too generic to get people on board the pay to view model, then again their aggregation services may be sufficiently unique that content providers that rely on the AP may be willing to pay.

    Your knee-jerk reaction is as interesting and insightful as those on the other side that insisted a free model could never work.

  15. The AP hasn't always been free... by damn_registrars · · Score: 4, Interesting

    I worked at a newspaper several years ago (including during the 2000 election debacle) and at the time our paper had to pay for an AP subscription to see the new stories. The only way to see articles through the AP website at the time was to log in as a (paid) subscriber. Apparently at some point in the more recent past they felt they could do OK by charging newspapers for the rights to print the stories that they were giving away for free on the internet.

    Exactly why they thought this wouldn't hurt newspapers is beyond me. Now it is apparently hurting them as well, too bad the damage has for the most part already been done.

    --
    Damn_registrars has no butt-hole. Damn_registrars has no use for a butt-hole.
  16. Re:News by Deag · · Score: 4, Insightful

    Another model is that of NPR. Basically non profit user supported.

    I do however think that the major newspapers will figure out how to monetize their popularity eventually. It is not as if the newspapers are not being read, it is just that the old revenue model is failing.

  17. Re:Its like watching an animal drown by Chyeld · · Score: 4, Insightful

    It does however, become necessary to put Dan Rather in front of the camera somewhere, so he can filter the signal to noise ratio down to something useable and 'believable'.

    Bloggers, for all their newfound 'power' are still subject to the "a million voices crying out" problem. Look at the 'blog' coverage of any of those events and you realize that had we "only" had bloggers telling us what happened back then, we'd still be trying to piece it together.

    There still needs to be something at the end of the funnel, filtering the "teh aliens what was the ones who did it" and the "I heard from my neighbor's sister-in-law who heard it from a guy standing on the street waiting for a bus.." out of the stream. And while that could be anyone, including yourself, most of us don't want to spend the time or the effort trying to decide who to trust and whose a wingnut. It's easier to choose one person, network, group, who've convinced us (rightly or not) that they are able to do that for us and present the package in an easily digestible manner.

    That being said, I do think the news industry is in for some major changes in the near future. They are going to need to move from being the 'authors' to being the 'research librarian': someone who can find what's already out there rather than spending time writing it themselves.

  18. Re:News by Wheely · · Score: 5, Informative

    The BBC isn`t government controlled. It is publicly funded and the amount of that funding is set ultimately by government.

    The proof for BBC independence is that whatever government is in power, their supporters always claim the BBC is a puppet of the opposition. This is exactly how an unbiased news outlet should be perceived in my view.

    You could argue that as the government sets the tax level (after lobbying from the BBC) that it can control the content but any government that tried to do that would be swiftly out on its ear.

    The BBC has never been "nationalized" either. It has always been independent, though financed through a special "license" you buy in order to receive its television broadcasts. BBC radio has not required this license for many years.

  19. Re:Its like watching an animal drown by blhack · · Score: 5, Insightful
    --
    NewslilySocial News. No lolcats allowed.
  20. Re:News by osu-neko · · Score: 5, Insightful

    The BBC is interesting because it's arguably less government-controlled than the US media, in spite of being tax funded.

    s/in spite of/because of/

    The BBC has to worry less about pleasing its corporate masters and more about serving the public, since it's the public that's footing the bill. It's essentially the same principle that keeps Consumer Reports and public radio a cut above the rest.

    --
    "Convictions are more dangerous enemies of truth than lies."
  21. Re:Its like watching an animal drown by scheme · · Score: 4, Interesting

    A cheap distribution method doesn't do that much to lower the costs of gathering the news.

    Tell that to all of the bloggers that went out and reported on what was happening during the Tsunami, or Katrina, or the Terrorist attacks in Mumbai.

    When you've got literally millions of reporters all out there reporting, and almost that many with decently high-end cameras taking decent photos...it sortof becomes unnecessary to throw Dan Rather on a jet.

    Tell that to the reporters that spend months investigating a given issue and then writing 7-8 articles on it. Bloggers are fine for breaking news, not so much for things that require in depth coverage and investigation.

    --
    "When you sit with a nice girl for two hours, it seems like two minutes. When you sit on a hot stove for two minutes, it
  22. Re:Its like watching an animal drown by SydShamino · · Score: 5, Insightful

    That's not the kind of news that needs real reporting. Any yahoo with a camera can take pretty pictures to put on TV, or, sometimes, take insightful pictures to put on TV.

    Bloggers aren't out digging into court archives to find patterns of abuse, like the Philadelphia Inquirer did while looking at the judges that accepted kickbacks in exchange for sending a higher-than-normal rate of kids in their courts to private boot camps.

    Bloggers comment on those types of stories. They don't research those types of stories, at least not very often.

    And that's the real problem. We don't have a New Media today. Not yet. What we have is a temporary middle-state:

    1. Old media (old print media, to a large extent) does investigative journalism, but isn't paid for it.
    2. "New" media takes the original story, shares it, comments on it, and runs with it.

    So our "new" media of today is temporary at best. What happens when their sources go away?

    1. ??????
    2. "New" New Media comments on Things That Can Be Caught On a Phone Cam and nothing else gets done.

    --
    It doesn't hurt to be nice.
  23. Re:News by cjonslashdot · · Score: 5, Insightful

    I agree with you.

    AP and Reuters are two of the few actual content providers. They SHOULD charge. After all, they charge newspapers for their content. They have live trained reporters around the world, many of them risking their lives. This has substantial value. They deserve to be paid.

    Yes, citizen journalism has its place, but there is no substitute for trained professional reporters.

  24. Re:There once was a day by Prien715 · · Score: 4, Interesting

    From where I stand the opposite is true.

    There's 3 papers (I'm aware of anyway) in Houston Texas.: The Chronicle, The Houston Press, and Free Press Houston (listed from most corporate to most independent). The Chronicle endorsed GW for re-election in 2004, for example, despite Houston going for Kerry. The Press is much more liberal/independent and are less afraid to run stories about police brutality for example. FPH is very much your High School Yearbook team.

    What's funny is that the subscription newspaper (Chronicle) is the least independent of the 3. FPH and the Press are both ad-supported and free. And it's not limited to Houston.

    Seattle (the Stranger), Portland, Austin, and Denver all seem to follow the same model where the more independent paper tends to finance itself via advertising to local businesses and it's actually nice. The advertisements are generally extremely informative and let you know everything from what non-pizza hut places there are to get a decent pie, to when [favorite indie band] is coming to town.

    [Disclaimer: I don't work for any of the papers. I do go to their parties and am acquaintances with some of their writers.]

    --
    -- Political fascism requires a Fuhrer.
  25. Re:News by shadowrat · · Score: 4, Insightful

    I thought the dotcom bust taught us that after you spend your venture capital on aeron chairs, razor scooters, and indoor beaches, you need to actually do something that makes money.

  26. Re:News by CheshireCatCO · · Score: 5, Insightful

    Actually, I didn't get my number from Wikpedia, but I can't recall where I heard it. (Maybe ultimately it goes back to Wikipedia? Dunno.) Still, a fair point. 16% it is (include CPB), although it doesn't change the point any. The amount paid directly by listeners is well in excess of this.

    31% listener pledges, memberships, etc. As the GP points out, tax-deducatable donations are just a special kind of government funding.

    Surely you can see that this is nonsense? Money I spend on a charitable donation does not reduce my taxes (therefore government income) by the same dollar amount. If it did, I'd pay my taxes to my favorite non-profits and screw the government. Heck, I'd bet most people don't even BOTHER to itemize their deductions to make the individual donations count. It's not worth the effort for the average taxpayer.

    (Wikipedia claims universities, some of which are subsidized by government)

    This is just plain stretching to the point of silliness. I can't speak to all universities, but I know the state university in Colorado is funded less than 10% by the state government.

  27. Re:News by SatanicPuppy · · Score: 5, Insightful

    Independent journalism is a myth. If you want to cover a car wreck, maybe. If you want to get information from the government? Don't bet on it.

    To write a real piece of investigative journalism, you need time, you need clout, and you need money.

    As an independent, your FOIA requests will be largely ignored: what are you going to do, sue them? With what money? Big corporate newspapers hardly sue anymore because their margins are shrinking. Let me repeat: companies that make millions of dollars don't make enough money to pursue lawsuits that they can't help but win. What hope does an independent have?

    To keep from suing all the time, you need power and prestige. You need the government to know that you mean something, that you represent a large group with deep pockets, and that you will grind them under your boot if they fuck with you. To put this in terms you understand: if a newspaper sells less than 75,000 copies a day...That's 75,000 paid page views...even your state government won't give you the time of day. Translate that into web traffic, and imagine how big the site would have to be. This site gets tons of page views: when was the last time you saw them do something besides link to an article someone else wrote?

    Now money. You know what you get from the government if you FOIA request some data and they don't make you sue for it? The motherfuckers make you pay 25 cents a page plus shipping and they'll bulk up the document with everything they can find. You request some piece of information, better be ready to shell out a few hundred dollars in "copying costs." That's perfectly legal, they do that all the time.

    Without being able to demand information from the government, what do you have? What kind of journalism can you do? Seriously. And who'd pay for it? Since everything is free right? When the indie journalists go out and break the next Watergate, paying for their own lawyers the whole way, how are they going to get compensated? You gonna buy a t-shirt?

    What a fucking joke. Traditional media has it's warts, but no new media has stepped up to the plate...All they do is leech of the old media. And the only winners are the government, who make out like bandits with less oversight.

    --
    ad logicam Claiming a proposition is false because it was presented as the conclusion of a fallacious argument.
  28. Howling hypocracy by SatanicPuppy · · Score: 5, Insightful

    You pathetic little hypocrite. That blog has, on its front page, an unsourced link to an article from the New York Times and you have the shit-eating audacity to point to that as a proof that independent journalism is alive and well.

    That's the most pathetic thing I've ever seen.

    --
    ad logicam Claiming a proposition is false because it was presented as the conclusion of a fallacious argument.
  29. Re:News by SatanicPuppy · · Score: 4, Insightful

    Oh wow, guess I should have kept reading. The previous articles are from: LA times, Reuters, Christian Science Monitor, the fucking Voice of America. This is in order, motherfucker! Wall Street Journal, and Newsweek! Not one fucking article that wasn't written by an old school media outlet!

    Independent journalism my ass.

    --
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