Slashdot Mirror


Murdoch's UK Paywall a Miserable Failure

David Gerard writes "As part of his war against free, Rupert Murdoch put the Times and Sunday Times of London behind a paywall. Michael Wolff of Newser asks how that's working out for him. You can guess: miserable failure: 'Not only is nobody subscribing to the website, but subscribers to the paper itself — who have free access to the site — are not going beyond the registration page. It's an empty world.' Not that this wasn't entirely predictable." Update: 07/17 01:41 GMT by T : Frequent contributor Peter Wayner writes skeptically that the Newsday numbers should be looked at with a grain of salt: "I believe they were charging $30/month for the electronic edition and $25/month for the dead tree edition which also offered free access to the electronic edition. In essence, you had to pay an extra $5 to avoid getting your lawn littered with paper. The dead tree edition gets much better ad rates and so it is worth pushing. It's a mistake to see the raw numbers and assume that the paywall failed."

25 of 428 comments (clear)

  1. Duh... by guruevi · · Score: 5, Insightful

    This experiment has been tried over the last few decades (ever since the papers discovered the commercial Internet) and has failed miserably every time. Some magazines/papers even closed their doors after they tried it because they invested too much money in something that had 0 return on investment and alienated their existing audience that was actually paying their bills.

    --
    Custom electronics and digital signage for your business: www.evcircuits.com
    1. Re:Duh... by AnonymousClown · · Score: 5, Interesting

      Not every time - The Wall Street Journal and the Financial Times & Economist (same company) are a couple that worked. I can't think of anymore that worked though. And it is interesting the subject matter of those three papers. There must be a couple of more exceptions.

      --
      RIP America

      July 4, 1776 - September 11, 2001

    2. Re:Duh... by Anonymous Coward · · Score: 5, Insightful

      The obvious reason why WSJ and FT succeeded is because they provide stock information which is a heavily regulated market that costs a *lot* to get into and to provide. Therefore there aren't any free alternatives (*) -- everyone who offers stock information charges for it, and the audience is used to this fact and accepts it.

      The brand recognition and virtual monopoly position enjoyed by these two papers would also have helped.

      (*) Yes, I know there are free stock listing all over the place, but you'll notice that all of them have a time delay of at least several hours. Real-time stock data is only available to those willing to pay for it.

    3. Re:Duh... by aCC · · Score: 5, Interesting

      For the Economist, I (as a subscriber) can tell you why it worked for their subscribers: they offer fantastic value. I sing the praise for the Economist whenever I can, because I think that they are one of the few companies that get it. With my paper subscription I get:
      1. Full access to the website including ALL past issues!
      2. The current issue as an audio podcast (800MB!).
      3. I can cancel my subscription whenever I want AND GET THE REMAINING MONEY BACK! (This is a big YES THEY GOT HOW TO TREAT THEIR CUSTOMERS.)
      4. If there are problems with deliveries (e.g. a UK postal strike), they switched to hand deliveries to make sure the subscribers got their issues.

      These are all added-value services that ensure I will subscribe to their magazine even though I manage to read it only occasional due to the volume of articles. Obviously, I also believe their articles are top-notch (they even get technology reasonably well).

      I am not affiliated with the Economist in any way. Just a very happy customer.

    4. Re:Duh... by Tridus · · Score: 5, Interesting

      Wow, yeah. That's a great example of customer service adding value to a product.

      It also helps that the Economist tends to have quality and unique content. It's something you can find from 5000 other sources at the same time, as opposed to your average newspaper.

      --
      -- "So they told me that using the download page to download something was not something they anticipated." - Bill Gates
    5. Re:Duh... by mcgrew · · Score: 5, Insightful

      ever since the papers discovered the commercial Internet

      Commercial internet... Commercial internet... Commercial internet... Jees I'm getting old. I miss the nineties and early zeros when the closest thing to a "commercial internet" was a web page with a single ad banner, which everyone bitched and moaned about to no avail. None of the sites I ran back then had any advertising at all; like most other folks' sites then, it was a labor of love.

      The damned greedheads seem to ruin everything. Thank god people aren't falling for Murdoch's nonsense (yet).

      Murdoch's terrible Faux News was on the TV in the bar last night and gees, if anyone would have talked about Bush when he was in office the way Murdoch's "news" station talks about Obama, Faux News and the neocons would have called them "traitors" and screamed bloody murder.

    6. Re:Duh... by TooMuchToDo · · Score: 5, Insightful

      I'd have to say that the Economist is *far* more informational in value than the WSJ. When traveling, I almost always pick up a copy of the Economist from a newsstand to read on the plane (but would like/pay for an iPad version if they made it).

    7. Re:Duh... by deoxyribonucleose · · Score: 5, Insightful

      They get technology reasonably well. They occasionally call out the occasional walking piece of corruption that other are resigned to (read: Silvio Berlusconi). But editorial-wise, they are very far right. They supported the iraq war, they believed in WMD, and they denied global warming for a very long time (until 2007?).

      Far right? Too simplistic. You may not like all their editorial stances, but that does not make them right (sic!). They were and remain skeptical of proposed measures against global warming: would they be effective? would they be efficient? which aren't bad questions to raise for a magazine with that name. Being skeptical is not necessarily 'denying', especially if you prove willing to change your stance with further evidence. They also want to abolish the British monarchy (for starters): not exactly the position one traditionally associates with the conservative right. On Iraqi WMD they were duped and admitted it frankly: so were plenty of other publications and institutions few would call 'right-wing'. They also fell heads-over-heel for Obama.

      Me? I'm just a sucker for beatiful and efficient prose, with an occasional dash of dry humour. Would that I could achieve it.

    8. Re:Duh... by mcelrath · · Score: 5, Insightful

      The name of the magazine is "The Economist". They have a particular viewpoint (hint, it's in the name). On that topic and from that perspective they are very, very good. On non-economic topics, why would you expect them to be any better than your local newspaper? Read it for what it is and what it represents: an economic perspective. Of course there's more to life than economics, and you should look elsewhere for editorials on it.

      --
      1^2=1; (-1)^2=1; 1^2=(-1)^2; 1=-1; 1=0.
    9. Re:Duh... by link-error · · Score: 5, Informative

      If you want free real-time access to stock pricing information, just throw a little money into a ScotTrade account. You don't even have to actually buy anything and they pay you interest on the money as well.

      --
      -Unresolved symbol? Byte me!
    10. Re:Duh... by Bassman59 · · Score: 5, Insightful

      They strongly supported John McCain until it became obvious that Palin was sinking his ship.

      McCain's ship was already sinking by the time he chose Palin out of desperation. It actually worked for awhile, too, if you remember, until the media tore her apart.

      Uh, the media did not tear her apart. She self-destructed by whiffing on the softball questions tossed to by Katie Couric, after which her access to the media was limited to Fox News. It soon became clear that she was an airhead (or worse). McCain's choice of such a woefully inadequate running mate showed that his judgement was indeed poor, and as such the so-called "Independent voters" broke for Obama.

      So, what you call "the media tear[ing] her apart" is really an all-too-rare example of the media doing their job.

  2. Re:LOL! by JustinRLynn · · Score: 5, Funny

    [Nelson Muntz]

  3. Oppinions by Anonymous Coward · · Score: 5, Insightful

    This is being presented as a fact, but its merely a oppinion based on insider information. No where it states any real numbers. Dont get me wrong, I dont agree with Murdoch's ways but that doesnt warrant factless bashing.

  4. History repeating by Wowsers · · Score: 5, Interesting

    The Times / Sunday Times used to have a paid archive on CD-ROM circa 1992. On the internet, there were no articles over about a week old IIRC, the articles went into those CD-ROM archives. There was no great demand for that either, so the whole concept of charging got ditched and they got advertisers to relaunch a free expanded website.

    I wonder that now that it's a paid for website, how the advertisers feel about the massive drop in people being able to view their ads (assuming you're not crunching the ads with plug-ins for the likes of Firefox).

    --
    Take Nobody's Word For It.
  5. Totally Unexpected Of The Day by Crypto+Gnome · · Score: 5, Insightful

    In other news - water is (usually) wet, deserts are (usually) dry, and The TaxMan Cometh!

    The world is FULL of idiots.

    Even rich ones.

    Lemme give the man a (free, even) clue: On the one side, he wants to *get paid* for all the Free News his "papers" are putting onto "the web". On the other hand he completely ignores all the FREE EYEBALLS that search engines like Google bring to his website.

    While incessantly whining about people who 'want something for nothing', what he actually does is treat "free eyeball traffic" as being "worth nothing". Small Wonder His Website No Longer Gets Eyeballs.

    Murdock: HEY GOOGLE, STOP SENDING EYEBALLS TO MY WEBSITE without paying me for my content
    Google: You had me at "stop sending eyeballs to my website" - all you had to do was ask.

    --
    Visit CryptoGnome in his home.
  6. You Can't Cite Wolff on Anything Murdoch!! by RobotRunAmok · · Score: 5, Informative

    Oh, maaaan, Slashdot, this is so, so, wrong. Lookit:

    Michael Wolff was paid a huge sum to write a bio of Murdoch a few years back, "The Man Who Owns the News." It ended up becoming the "Heaven's Gate" of publishing: Wolff was paid a million dollars in advance, and it sold horribly. As a result, Wolff became a pariah amongst publishers, and he has had a jones against Murdoch ever since. He started "Newser" -- an online news aggregation site, sort of a Drudge Report, but with pictures and short summaries written by semi-literate snarky hipster interns -- specifically as a response to the "old-fashioned" way that Murdoch did business. Wolff writes a column there daily; like, every third or fourth one is some screed, equal parts vitriolic and smug, predicting failure for everything Murdoch is involved with. If Murdoch issued a statement saying that "Gravity is a Good Thing," Wolff would find some way to either argue against it or poke fun at it.

    Of course, it doesn't make matters any better that Wolff had an affair with one of those aforementioned interns a few years back that was made public -- and kept public, arguably far longer than an extra-marital affair involving a "C"-level journalist should have been -- by the Murdoch-owned NY Post. Wolff's wife (a divorce lawyer!! (he's obviously not the sharpest pen in the inkwell)) left him and took him to the cleaners.

    Nobody who knows anything about Murdoch or NYC journalism takes anything Wolff has to say seriously when he's in "Murdoch mode." Kind of like asking the Sheriff of Nottingham to give a measured opinion about that guy "Robin Hood."

    1. Re:You Can't Cite Wolff on Anything Murdoch!! by Eunuchswear · · Score: 5, Funny

      Nobody who knows anything about Murdoch or NYC journalism takes anything Wolff has to say seriously when he's in "Murdoch mode." Kind of like asking the Sheriff of Nottingham to give a measured opinion about that guy "Robin Hood."

      You compared Rupert Murdoch to Robin Hood?

      Wow.

      --
      Watch this Heartland Institute video
  7. Re:It's not the paywall that's failed by myocardialinfarction · · Score: 5, Insightful

    Here's the calculation: All of the BBC's content (TV,radio,news): £145.50 pa The Times and Sunday Times: £104 pa On a free market basis Rupees business model doesn't work. But business model inclues political interference in the financing of the BBC, on the basis that its competition is unfair. _On the contrary_. We in the UK pay for the BBC willingly because it is worth the price, and we don't for the Times because it's, well, who cares? The WSJ, FT and Economist are worth paying for to the folks in those industries. The Times is just some more crap from a Murdoch company.

  8. Re:still early days by hedwards · · Score: 5, Insightful

    Lower prices would help, but that doesn't explain why the subscribers that get free access weren't going in their either. It's easy to say the price is too high, but when the people that have free access aren't using it either, you have to think that it's something else that's going on.

  9. Why journalism online is not worthy of cash by Robotron23 · · Score: 5, Interesting

    If its one thing I've learned in a few years of being involved in the journalistic trade...it's that so many people in it are pigheaded to the point of doing themselves a lot of damage to their potential success and reputation. This is true from editors, to rank and file columnists...and new graduates convert alarmingly to this mentality with a dissapointing number of exceptions.

    Murdoch aside, the overriding truth of modern journalist both here in the UK and in the US is that quantity rules over quality. That's why every Saturday and Sunday we Britons cannot buy a 'quality broadsheet' without having to acquire a book's worth of text in supplements along with the actual newspaper itself. That one has to shell over £1.20 or so for a compendium of tripe that you mostly won't get around to reading is why journalism is failing.

    Simply put there are too many people employed who may have begun with some talent, but have lapsed into a state of passive drudgery writing filler columns about inane topics most readers could not care less about. You can actually tell with a lot of them that the author wasn't really thinking as he or she typed it out. In short the 'news' of newspaper is absent in a woefully high proportion; yes there's room for editorials and quirky opinion pieces...but the proportions are way off right now.

    This is true of all Murdoch rags, most starkly The Times which was a pioneer of supplements in the 1990s. Once, decades ago (pre-Murdoch), the Times led some of the most intriguing investigative departments in journalistic history - they spent months to break a story that would spread across what? Four pages or so of print? This level of work for that amount of journalism is unheard of today - that's because today it's all about cheap, easy stories that can be summed up mostly as: 'Churnalism' (a term coined by Guardian journo Nick Davies) . It began in earnest in the 1980s with Andrew Neil's Times, and the trend away from reportage which took effort, talent, dedication and downright brilliance to pull off is almost entirely absent in The Times of 2010.

    There is hope for the profession, as wracked by disease as it is; online journalism has some good offerings where journalists actually leave the office and do some old school reporting. That Murdoch and a few others see their awful, soulless content as worthy of paying for online rather than just going for what's worked since the beginning (advertisements) is telling of their wrongheaded approach which led so many publications to become so degraded in quality.

  10. Is failure a success? by Anonymous Coward · · Score: 5, Interesting

    Murdoch's not stupid, even if he does want to fight the tide. The question is, does he genuinely want to get money from this venture or does he want a "failure" to demonstrate the need for the government (who are indebted to him for supporting them in the election and stabbing the previous governing party in the back) to lend him a hand. I think it's quite reasonable to assume that he was advised that this would be a commercial failure and decided, eyes open, that that was exactly what he wanted to advance his lobbying position.

  11. I've seen the other side...! by openfrog · · Score: 5, Interesting

    I am a subscriber to the Times Literary Supplement. This year, I paid the supplementary 20$ to get Internet access, since I live in Canada and get the TLS with a substantial delay, and also because I was just curious given the scale of Murdoch's experiment, not talking about the scale of his pretensions.

    So I am one of the very few who got past the registration page. The other side of this pay-wall allows us a peek on the dystopian nightmare that would have been the Internet if developed by corporations, and it is on a par with the current state of academic journals online. In order to undo what the Internet is meant to do, that is to hyperlink, Murdoch has spent a fortune developing a shiny interface that let us navigate through an exact reproduction of the paper thing. It is DRM by design: there is no way to copy and paste, to store, therefore to link, to annotate or to use in any meaningful sense of the word beyond a reading experience that is, as a result, as uncomfortable as it gets. The technical constraints that all this restraining impose make navigating and reading impractical and painful.

    Despite the attractiveness of reading the TLS in a timely manner, I went to the site once and never repeated the experience.

  12. Re:Inevitable Future by silanea · · Score: 5, Insightful

    I'm also wondering what people would consider something they'd pay for.

    Off the top of my head:

    1. Information that is relevant to me. I could not care less about sports or the latest celeb gossip, but I do care about technology and the innards of current political processes. Few print dailies offer the latter in any really comprehensive form, and none carries the former on an ongoing basis. I would need to be able to select a) which branches of news I am interested in, and b) on what level. I want the gory details on tech and politics, but I can do with a general overview of the economy since I do not know enough about this field to interpret detailed information on specific companies or industries. I can do without 90% of what is usually crammed into the "culture" section, but I do want to read about new film, book and music releases in certain genres.
    2. Properly researched information, with all sources (bar confidential ones) given and all quotations properly attributed. It is the bloody 21st century and those idiots have yet to discover the mysterious magic of hyperlinks and bibliographic citations. I am sick and tired of reading that "circles say" or "eye-witnesses stated". Who said and did what? I want the ability to verify what they claim in their articles.
    3. Reasonably objective reporting. Complete freedom from bias cannot be achieved, of course, but I do not need murders described in picturesque prose, as if Steven King himself had written the article. Also I want to know what happens in the world, not what publisher X deems compatible with my world view. Political correctness has no place in the selection and priorisation of news. Again, who did what, why did they do it, and what conclusions may be drawn from that?
    4. Background and analysis. If MP x says "GM-food is safe!!1!1" while holding stocks in the top ten international biotech conglomerates that nifty little piece of information belongs in the article so I can put the reported issue into perspective. Also I expect any quoted numbers to be checked for correctness and so on. If *AA claims x fantastillion in damages from evil pirates I expect a proper journalist to check that number and break it down.
    5. Updates! If an article was incorrect, I want to know. If a new development has come up I want to know. But transparently! Revision control is the keyword.
    6. Ease of use. Customisable "home page" and RSS feeds are the bare minimum, along with a sensible feedback mechanism.
    7. Searchable archive of all past issues. Any content older than, say, one week should be open to everyone for free. It is not news then anymore, is it?
    8. Reasonable pricing, ideally based on how much content I order. Like $1 per topic per month for the basic overview, $3 for in-depth information.
    --
    Rudolf Hess edited Mein Kampf. He was the very first grammar nazi.
  13. Niche markets by Comboman · · Score: 5, Insightful

    There must be a couple of more exceptions

    Consumer Reports is another periodical website that uses the subscription model (though in that case it is because they don't accept advertising so their reviews can be truly independent). What they have in common with WSJ, Economist and various scientific/medical journals is that they offer highly specialized data to a niche market that is willing to pay a premium for it. General interest newspapers and magazines do not fall into that category which is why the advertising-based model works much better for them.

    --
    Support Right To Repair Legislation.
  14. I'm perfectly willing to pay ... by gurps_npc · · Score: 5, Insightful
    If they treat me like the purchaser as opposed to their seed grain.

    That means:

    1. NO ADVERTISING. If you advertise, particularly the annoying, video and sound (with those extra annoying pop-up - or worse pop-out crap), your customers are the advertisers and my attention is what you are selling. Why should I have to pay you so that you can IRRITATE and ANNOY me by selling MY attention? NO. Adverising is a great, perfectly fine way to pay for FREE content. It is NOT an acceptable way to make some extra money on top of what you charge me.

    2. NO TRACKING ME. Again, if I am paying you for a service, that means I don't want you to invade myprivacy. You don't track what I read or when. No record keeping of anything I do. You are allowed to count how many people click on a story, but not whether the same person clicks on story X as also clicks on story Y.

    3. Video and sound should all be accompanied by printed summaries. Deaf people (and blind people using text-to speech converter programs) are important customers too and some of us don't like the video - it takes too much time, is lazy, and if I wanted that I would turn on the TV.

    4. Better, in depth writing that does not accept stupid statements. Don't just accept statements, VERIFY them. (i.e. treat each of the people you quote the way Politifact.org does and when they give numbers make sure they are telling the truth.) When someone says something really stupid like "this snow storm in the heart of winter disproves global warming", call them on it YOURSELF, don't simply get an opposing point of view.

    The Internet did not kill newspaper, a combination of poor writing and advertisers did (the advertisers would rather spend 5 cents to talk sell diapers to pregnant women than 10 cents to sell diapers to everyone). Those same forces rule the internet news market - as long as you let them. If you want to recreate the pay-news market, you need to avoid the problems that killed the newspaper.

    --
    excitingthingstodo.blogspot.com