Posts Tagged ‘content’

For Some, A World Wide Web That Never Was

Broadband, Internet, Mobile, Music, Online Video, Radio | Posted by Larry Greenberg
Aug 24 2010

Chris Anderson, Wired’s Editor-In-Chief, and Michael Wolff, Vanity Fair columnist and Rupert Murdoch biographer, recently wrote dueling columns in a special Wired feature called “The Web is Dead.”   For his part, Anderson described the World Wide Web’s diminishing role as the all-purpose gateway to the Internet.  Other Internet platforms and devices, including mobile, have become the preferred means of online access.

The piece speaks for the United States and probably reflects trends in many other developed countries.  A decade ago, especially in the United States, the Web was synonymous with the Internet future.  Today the terms “Web” and “Internet” are used interchangeably, although the web is just one way to get on the Internet.  As Anderson points out, thanks to iPhones, iPads, Blackberries and other smart mobile devices,  a majority of users’ online time is spent outside the confines of web browsers.  If the Internet is the Super Information Highway (sorry about the hackneyed metaphor), then the Web is becoming more like Route 66, a historic road that has since been bypassed by quicker and better ways of reaching their destinations.

The success of non-Web platforms has to do with an improved user experience, that is, the ability to get desired content more easily.   “Every time you pick an iPhone app instead of a Web site, you are voting with your finger,” Anderson wrote.  “A better experience is worth paying for, either in cash or in implicit acceptance of a non-Web standard.”

Of course, “The Web is Dead” title was likely meant to be more provocative than literal.  Perhaps it’s more accurate to say the Web is waning, evolving into just another useful means of Internet access.

So if the Web really is ebbing in the United States and other developed countries, what about emerging nations such as India?

In a July 30, 2009 post, “India’s Flourishing Newspaper Industry and Its Internet Future,” I discussed how India may well follow its own path to the online world.  In India, where landline penetration is low, the mobile subscriber base was nearly 525 million in 2009, according to PricewaterhouseCoopers, up from 234 million connections at the end of 2007.  In May 2010, the government auctioned off its 3G broadband spectrum, creating opportunities for carriers and content providers to offer an infinite array of revenue-generating Value Added Services (VAS), including music streaming, radio, videos and online games.

In July 2010, the GSMA announced that the number of global mobile connections has surpassed the 5 billion mark. As 3G is adopted around the world, there could be hundreds of millions of people enjoying their first taste of advanced Internet connectivity without ever having surfed the Web. For these users, perhaps the Wired article might aptly be re-titled, “The Web: You Can’t Die If You Never Lived.”

The Future of Paywalls for Online News

Journalism, Media | Posted by Larry Greenberg
Nov 09 2009

What’s a national newsprint magazine to do in an era of declining ad revenues?  Add many more pages and stories, and use more expensive paper stock, of course.

If that seems to contradict the prevailing industry wisdom about the future of news publishing, Bloomberg LP may know something others don’t.

MediaWeek reported recently that Bloomberg executives unveiled their plans for BusinessWeek at an internal staff meeting.  In addition to a bigger, glossier magazine, Bloomberg will make most of BusinessWeek’s general coverage available online for free.    Bloomberg is, however, considering a $100 annual online subscription fee for those wanting access to an extensive library of vertical-specific content.  Further, the Wall Street Journal wrote, Bloomberg is considering charging subscribers as much as $1,000 per year for access to certain content on Bloomberg.com.

This latest development suggests the publishing industry has cast another vote for the freemium model.

Although not a consumer publication in the mold of a general news weekly, BusinessWeek nevertheless appeals to a much broader readership than Bloomberg and other hard core business information services.  Will the industry see more mergers between B2B and consumer media outlets?  Will such arrangements involve B2B outlets, with their relatively lucrative corporate-paid subscriptions, supporting the ad-dependent consumer partner that, in turn, brings more readers and its print brand prestige to the table?

Getting consumers to pay for online content — either as subscribers or per article — is going to be a tougher sale.  Rupert Murdoch has indicated the News Corporation may delay plans to charge for the New York Post, the Australian and, in the UK, the Sun and the Times.  There seem simply to be too many competitors willing to give away similar online content.

The New York Times ran an article about how subscriptions remain the holy grail of revenue generation.    The piece noted that unlike a pay-per-use model, in which the consumer must make repeated value judgments, the traditional subscription model spares customers the bother of repeated decision-making and ensures a steady stream of revenues.   Most people, however, are already accustomed to free online content. Further, when a tough economy is pressuring individuals to reduce discretionary spending,  the task of getting consumers on  board appears even more daunting.

It seems online subscriptions would more likely succeed with business customers, because people are more willing to pay for the news they need, not want.