UOSM 2008: Topic 5 Explain the advantages and disadvantages to a content producer of making their materials freely available online

Explain the advantages and disadvantages to a content producer of making their materials freely available online

Firstly, I would like to introduce The Nielson Company’s research ‘changing models a global perspective on paying for content online’ which highlights as expected, that ‘the vast majority (85%) [of consumers] prefer that free content remain free.’[1] However, it has emerged that the survey participants are more willing to at least consider paying for particular categories, especially if they have done so previously. This graph sheds some light on this:

Image source: http://www.nielsen.com/content/dam/corporate/us/en/newswire/uploads/2010/02/paid-content-type.png

As this is such a wide and diverse topic, I have chosen to focus on what first came to mind when I considered the accessibility of online content, that of newspapers. This is because I have been, on occasion, frustrated by my inability to access news articles. I must note that I would be reluctant to pay for news content for a variety of reasons, and therefore, have found myself by default and happily so a Guardian reader.

Newspapers worldwide are implementing paywalls in an effort to convert large, free-reading online audiences into paid subscribers. In the UK, ‘The Times,The Sunday Times, The Financial Times, The Daily Telegraph and The Sun, among others, have all implemented (or announced plans to implement) paywalls — but The Guardian, […], has no plans to join them.’[2] It will be beneficial to first outline the varying types of ‘paywalls’ available, followed by the advantages/disadvantages for and against their implementation.

Types of Paywall[3]

The Absolute Paywall
Content Restrictions
Device-Specific models
Metering
First click free and sharing

Please see this article for more detailed info on varying implementation of paywalls and examples of success.

Arguments for the implementation of Paywalls

Prevent newspapers from going bankrupt or suffering huge financial losses
As we transition from printed journalism, a paid for commodity, to digitised – no information is lost, if anything the wealth of articles and ability to access them has increased, there has been a growth in service – a service that should arguably continue to be paid for.
Creates a community of dedicated/loyal readers – perhaps with a shared sense of values

Arguments against the implementation of Paywalls

Competition, organisations such as the BBC will continue to produce news content free of charge
Open access allows greater visibility, content can be shared/go viral unencumbered
Open access enables a higher percentage of individuals to access information, learn and contribute – prevents exclusion on a financial basis.
A higher number of readers and as a result more engagement
Digital-only display ad revenues – a viable financial alternative
People traditionally paid for ‘print’ newspapers because of the recognised cost of production and the nature of a ‘tangible’ product
The web is and has been, inherently FREE

If you wish, take a moment to read through this case study[4] of the Mail Online’s distinct reasons behind remaining FREE.

To conclude, I remain in favour of online content being accessible for all and free. I believe that it is important to keep informative educational news portals open. It speaks volumes that: ‘open access adds 141.8% to the total readership of the Guardian and Observer, turning 907,000 daily print followers into 2,194,000.’[5] As Peter Preston states: ‘readership figures for The Times and Sunday Times versus the Guardian and Observer – show the difference a paywall makes.’[6]

[1] Covey, Nic, ‘Changing Models a global perspective on paying for content online’, The Nielsen Company, published 16/02/2010, accessed here: http://www.nielsen.com/us/en/newswire/2010/changing-models-a-global-perspective-on-paying-for-content-online.html

[2] Indvik, Lauren, ‘The Guardian’:We’re not planning on a paywall’, Mashable, published April 17th, 2013, http://mashable.com/2013/04/17/the-guardian-no-paywall/

[3] Jackson, Japser, ‘As Telegraph joins paywall bandwagon, here’s five leading approaches to gated access and user revenues’, The Media Briefing, published here:http://www.themediabriefing.com/article/paywall-approaches-gated-access

[4] Andrews, Robert, ‘Mail Online: Why we’re staying free’, The Guardian, published 20th April 2010, http://www.theguardian.com/media/pda/2010/apr/20/mailonline-strategy-paywall

[5] Preston, Peter, ‘Paywalls or not?’, The Observer, published 2nd March 2014,http://www.theguardian.com/media/2014/mar/02/times-guardian-website-users-paywall

[6] Preston, Peter, ‘Paywalls or not?’, The Observer, published 2nd March 2014,http://www.theguardian.com/media/2014/mar/02/times-guardian-website-users-paywall

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