Grow up and start charging for online content

For the first time in my life I nearly let out a loud, and very public, "Hallelujah, and Amen brother" in full evangelical style.

Where was I? A church in the deep south of America, in front of a gospel choir watching a preacher perform miracles upon a small disabled child? No. I was in a session at the news:rewired conference in London.

What brought about my conversion to gospel-style outbursts? It was listening to Francois Nel tell assembled delegates that anyone who thought that online content should be free needed to "Grow Up".

Ok, so it's not quite the Road to Damascus that you might have expected, but it was for me. I remember suggesting the same at the first news:rewired two years ago and I feared for my life as I was chased from the building by digital journalists carrying flaming torches and pitchforks.

A bit of an exaggeration perhaps but nonetheless, there has long been the assumption that any attempt to charge for online journalism is heinous in the extreme and bad for democracy.

Take the term 'paywall'. It is a loaded term implying secrecy and subterfuge and not a term ever used, for example, to describe the cover price for a newspaper or a subscription to a magazine.

It wasn't helped when the first person to try to charge for general news content in the UK - as opposed to a more niche publication like the Financial Times) was part of Rupert Murdoch's empire. And anyone who is anyone knows that he is the Magneto to liberal journalism's Professor X.

But journalism is an expensive business and it cannot be done with journalists - and lots of them. That's not simply a plea for employment for my students but a plea for the industry as a whole.

Think about the working hours Nick Davies has had to put in to uncover the hacking scandal currently rocking the industry. Think about the massive amount of data crunching the Daily Telegraph's investigative team had to do on the MP's expenses. Think about the undercover work carried out by the News of the World to expose the corruption within the Pakistani cricket team.

It's not cheap and it's not possible if you have cut back your staffing levels to the point where each reporter finds themselves churning out story after story simply to fill the paper. Read Richard Peppiatt's account of working for a Richard Desmond publication if you want first-hand evidence.

The Guardian has been at the forefront of the 'campaign' to keep online content free. I use inverted commas because there is no formal campaign and Alan Rusbridger claims that he is not doing so for societal reasons but because he hasn't yet found a business model to suit.

But since January 2001, the Guardian's circulation has reduced from 400,000 to 230,000, pagination has been substantially reduced and the print 'paywall' has increased to £1.20 a day.

That is all against a backdrop of failing to find a way to monetise online content through advertising or other activities. Last year the group announced losses on £33m and two years ago, GMG had to sell it's regional newspapers to Trinity Mirror to offset such losses.

More power to Trinity Mirror and, in my opinion, bad for plurality in general as the group takes an even firmer grip on all the big publications in the North West.

Finding a successful model for getting readers to pay for online content is not easy - you're pretty much guaranteed to slash your audience by 80 to 90 per cent overnight - but only if the industry 'grows up' works together can it work in the long term.

The Scott Trust, the organisation funding the Guardian Media Group, is a crown jewel among British journalism. It ensures that at least one national daily newspaper is not beholden to shareholders and commercialism in general.

This is how the Scott Trust describes its core purpose:

1) To secure the financial and editorial independence of the Guardian in perpetuity: as a quality national newspaper without party affiliation; remaining faithful to its liberal tradition; as a profit-seeking enterprise managed in an efficient and cost-effective manner.

2) All other activities should be consistent with the central objective. The Company which the Trust owns should: be managed to ensure profits are available to further the central objective; not invest in activities which conflict with the values and principles of the Trust.


3) The values and principles of the Trust should be upheld throughout the Group. The Trust declares a subsidiary interest in promoting the causes of freedom in the press and liberal journalism, both in Britain and elsewhere.
How possible will that purpose be if the current management fails to find a suitable model for making online pay? Especially as the Guardian is keen to explore all of the new forms of journalism available and, for example, live blog the first appearance of the new presenter of Countdown.

I must admit when I saw that blog I did wonder how it adhered to the second objective - but that's probably a thought for another day.

It may be that they will never find a way of making 'online' pay but that the media audience will naturally migrate to tablets such as the iPad, where most organisations are already erecting 'paywalls' - although they don't seem keen to use the term paywall in this context.

Anyway. It was just joyous for me to hear someone else say out loud what many in the industry have known for a long time.

Francois was not quite as vulgar as I perhaps am and highlighted that it didn't have to come back to cold hard cash. He used the term 'Reciprocity' to underline that he meant that we must ask for something back. He highlighted the Daily Mail as a successful business model as print readership was declining more gradually than other publications and online readership was rocketing.

If I thought it brave to demand paying for online content at a conference like news:rewired, then the chutzpah required to praise the Daily Mail is off the chart.

However, I dislike the Daily Mail's methods here. They separate online and print and seem prepared to shovel any old content online - hence hideous mistakes such as the recent use of a video of an alleged rape. I understand from insiders that such a policy is causing problems as specialist reporters are coming in to find furious messages from contacts who have seen a story posted online, which lacks the kind of contextual information that a more considered form of journalism might bring.

No, for me its about the cold hard cash. I don't want a profit and I don't expect to become rich but I do want my journalism to be well supported financially.

It is great to be part of the digital evolution of journalism, but if we fail to fully interrogate all the issues now, we could fail the industry in the long term.

2 comments:

  1. Malcolm,

    First off, great to meet you briefly at News Rewired.

    To quote Jim Brady, who heads up Digital First media (a newspaper group in the US), there aren't any silver bullets, only shrapnel. Paid content is one revenue stream, but there are lots of others. As I said, newspapers, like the Guardian, not only need to create value, they also need to capture it. The Guardian already does conferences and events, but they could also use market their interactive skills, not give them away. That would benefit the industry and themselves.

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    Replies
    1. Cheers Kevin.

      I suppose it boils down to one question to me:

      "Why can it be assumed that the skilled dissemation of news has no intrinsic value when it is online?"

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