August 7 2009

News Corp President Rupert Murdoch announces to analysts and reporters that the company will start charging for all news websites in the struggling newspaper division as well as strong revenue generator FOX News Channel. Q4 showed a loss of $203 million dollars.

So now that the business model doesn't work and the company is experiencing one of the worst years ever, its time to charge consumers for reading newspaper content on line. Guess what-that concept is going to backfire. The argument here is that quality journalism is expensive. Yet, I'm still trying to get my head around paying for content on-line when there are literally thousands of other sources to turn to- other news outlets, bloggers, and Twitter feeds. The argument I often make with local media properties when pitched 'news' is by the time I see it or read it, its already 'old news'.

I think the only way to make paying for news content work, is for it to have tremendous value to the user. Offer up something they cannot get elsewhere. Deliver an integrated approach that includes a customized home page, rss reader, free print delivery, Iphone app and incentives and discounts for using multiple services. Its a business and I am all for making money-but it's a bad move for media properties to just start charging for content that was delivered up free. Its a recipe for disaster.