Rupert Murdock announced the end of free news era for News Corp. When the company is suffering from a profit loss, it is obvious for it to employ a new business model to look for an additional revenue. However, is the market ready to pay money to read a general news? Well, I am not.
My internet homepage has been set on BBC online News for well over seven, eight years now. I must seem very loyal to BBC News but the key question is, would I still read BBC News, if I have to pay for it? (this is an hypothetical question since BBC is run by TV licence fee, adopting a fee based model is unlikely) I do not have to ponder too long over this. My answer is simply, No, I would not. I would find other free online news sources.
There are two aspects that concern me.
One, their success of the subscription model is largely dependent on its ability to produce “unique, high value and well-differentiated content" in order to compete with other freely available online news and follow the likes of 'The Financial Times' and News Corp's 'Wall Street Journal'. News Corp explains that their content would be “better and differentiate it from other people". It doesn’t seem very convincing. News Corp seems to believe that they can replicate the revenue model of 'Wall Street Journal' which targets a specific market for their other general newspapers. In order to succeed in adopting a subscription model, it is paramount for newspapers to build their unique identity (differentiating characteristics) and a firm reader base whilst providing free online news.
Two, News Corp states “…I believe that if we are successful, we will be followed by other media.” It is not the followers that they need but the fellow members in order to coordinate a campaign to ‘over throw’ free professional news from internet. If all so called quality newspapers/media group decides to charge the readers for their online news content then my only option would be opening my purse. I am sceptical about their success and over the coming months, it will be very interesting to see how the seemingly obvious business venture pans out.
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