Rupert Murdoch (source: worldeconomicforum/cc-by-sa-2.0)
Rupert Murdoch has stated that he wants to begin charging for access to his online news websites.
I get that he needs to find a new source of revenue and a new business model to keep up with the times, as traditional newspaper revenue goes down the gurgler.
I get that based on his Wall St Journal online business model of subcriptions, he has seen that this can work.
I get his motivations - and yet I don’t agree with him.
Here’s why:
- Murdoch is basing his new model on the success of the Wall St Journal (online). This is a service focused on providing business and finance news to a niche audience who are affluent. They would most likely have financial interests and may rely on the information the WSJ provides. The WSJ also provides original content (according to his website that is – I wouldn’t know because, surprise, I don’t subscribe).
- Murdoch’s other news services do not provide original content. Most of the news they report is derived from wire services - therefore:
Why would people want to pay for a service when they can read the same content for free elsewhere?
Now unless every news service starts charging for content (the probability of that happening is low as there will always be free and accurate alternatives on the web), I can’t see how Murdoch’s model will work to the level he is expecting.
I have no doubt that he will have some success, but it will be nowhere near his projected outcome.
Another thing, he is on a mission to stop news aggregators such as Google News, Crikey, and many others using ‘his’ content for free.
- it is fair to say that it is not Murdoch’s own content as the majority of his news originates from wire services (as stated previously)
- news aggregators direct more traffic to Murdoch’s websites - he should be paying them - I definitely would not click onto his websites otherwise
- many people want a variety of news sources to form the basis of their news consumption – not just the one ‘authoratitive’ source – that’s a digital immigrant’s way of thinking- not a digital native’s.
Murdoch is definitely not thinking far enough ahead and what’s worse is he is trying to tackle this new digital challenge with the wrong approach.
Murdoch needs innovative and forward thinking people working for him – something which he seems to lack when dealing with the online world.
Would you subscribe to his online news websites? Do you think Murdoch is heading in the right direction?
Nicely put, Mia. I couldn’t agree more!
While Murdoch’s approach doesn’t surprise me, I think it’s ridiculous. It also seems particularly hypocritical in the context of his 2005 speech to the American Society of Newspaper Editors:
This idea of subscribing to content that is not unique demonstrates that Murdoch has not managed to make the leap to be what he refers to in his speech as a ‘digital native’. His fears have been realised in his own actions.
The only way I can imagine Murdoch’s subscription model could be popular, or profitable, would be by charging regular readers who don’t realise to read the news sources elsewhere as they never search outside what they know.
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Thanks for your comment Sarah.
I agree with what you’re saying regarding the types of subcribers he will get – Rupert is potentially losing a huge chunk of users – many more than he realises.
He has lost before he has begun it seems!
Murdoch has got to come up with something better otherwise he will start to fail like James Packer and his casino’s.
Which isn’t a bad thing altogether I suppose.
Totally agree Mia. I’m not too sure who exactly would be willing to pay for News Limited content that has been so easily accessible and FREE for so many years.
However, I do see the benefit in charging for content if it is information which I:
a) cannot get anywhere else or
b) am so interested in the story that I am willing to fork out some bucks in order to soak up that content.
Unfortunately, neither category falls with Rupert’s content and I’m pretty sure it never will. Unless he was willing to step outside his square…which I think we can safely say is never going to happen.
Cheers Melody.
Why is your post blocked?