Monday, June 24, 2013

To pay, or not to pay: That is the question

To pay is my answer. In this digitally fragmented world, I believe paywalls are a smart strategy for newspapers that have a unique value proposition. And only those newspapers with a unique value proposition like the Wall Street Journal and The New York Times can be successful at implementing a pay per view strategy. With the rise in internet consumption and the introduction of new social media mediums like redditThe front page of the internet” people don’t need newspapers like they needed them before. We can get information from hundreds of different sources such as blogs, Twitter, RSS feeds, Google alerts, niche news organization, etc. It’s no longer just about the news but it’s about offering readers a unique experience and compelling content. Sound familiar? Like with any other product, consumers will always pay more for a product if they perceive it to be of high value. I am willing to pay $15.99 a month for SHOWTIME just to watch Homeland.

The real question comes down to are these newspaper organizations differentiating themselves from the rest of their competitors. Is their offering unique? Is it perceived as valuable? If it is, there is no reason for a paywall not work.

I commend The New York Times for seeing the writing on the wall early and adapting to their new reality. Many newspapers like the Washington Post were critical of the New York Times in 2011, but since then have implemented their own paywalls.

What are you willing to pay more for?

1 comment:

  1. I love this article because it agrees with my opinion that it is the brand that makes people willing to pay. If the brand promises consumers enough value, payment is not a problem.

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