TheTheory Wrote:
Elvis Fu Wrote:
Newspapers don't sell content. Newspapers sell advertising. Subscription prices cover ink & paper and little else. Until newspapers find a new revenue model or stop trying to bank on box display ads and THOSE GODDAMN ADS THAT COVER THE FUCKING PAGE AND I CAN'T FIND THE 'X' TO CLOSE IT OUT, they are going to be in a pickle.
To an extent you are correct... traditionally--going back to the first penny press--a newspaper earns its money through selling advertising. However, what do you do when that doesn't work? This has been a problem ever since televised news put a major dent in the circulation numbers of newspapers. If your circulation numbers drop, so does the potential amount of money a company will pay for an advertisement.
The newspaper industry has been debating this problem since that time and the problem has only become compounded with the internet over the past 10 years.
Not exactly. Newspaper margins were in the 10-20% range even in the 2000s. I worked at a paper that posted circulation gains on both pub statements for 2007. Prior to that, circulation fell every year, ad rates went up every year, and you kept your margins. It wasn't until around 2008 that the shit really hit the fan, and that was because the paper was bleeding advertisers, not subscribers. In fact, the subscribers quit after the advertisers. The real hole in the boat was real estate. Ballparking, Advertising was 80% of revenue, and 75% of that was classified advertising. I left town, but from what I hear, the real estate section is down to 8-12 pages. I have no idea how they keep the lights on. It used to regularly be 48. They even had to rearrange the printing schedule to make it work.
Metered access doesn't do anything to address that problem, that's why I don't think this is a game changing idea. It will recoup some revenue, but it won't run the paper. I don't understand where you are going with "what do you do when [selling advertising] doesn't work", because pricing content as a revenue producer is much more unlikely to work. That's why they moved to ads in the first place. Now, there is one newspaper that has done well with a paid model, and that's the Wall Street Journal. The reason WSJ works is because it has unique content. If NYT can re-position themselves in that way, then the paid model has a better chance of working. Right now though, I don't see them doing that.