The Evolving Newsroom

Steve Yelvington poses eight points for newspaper owners to consider when thinking about erecting a paywall (thanks to @shanerichmond for the link). Here are four of them:

1. The problem of scale (volume). It takes scale to make paid content work, and you don’t have the volume you think you have. Quit making up wishful percentages based on your totally bogus monthly unique-user count (“well, if we get just 10 percent of our 85 zillion unique users to pay”). If you’re going to engage in wishful thinking, base it on the cohort of individuals who visit your website more than three times a week. You will be shocked, and dismayed. I’ve been saying this for years: How can you get them to pay if you can’t even get them to visit frequently when it’s free.
2. Competition. There are plenty of competitors and would-be competitors just waiting for you to strangle your own website so they can step in and steal your future. The larger the market, the more this is true. In some relatively small, isolated markets you may be able to get away with it. For a while.
3. Lack of unique content, coupled with a false sense of being unique. When you’ve had a virtual monopoly for decades, you grow arrogant and develop blind spots about your own weaknesses. From the viewpoint of the consumer, you’re not nearly as unique and special as you think. And you’ve exacerbated this problem with your poor pay scales historically, and more recently your vicious cutting aimed at higher-salary veterans.
4. Support costs. If somebody drops 50 cents into a newsbox and it won’t open, they just go away mad. If somebody is paying for access to your website and it won’t work, they’re going to call and suck up 12 dollars of staff time. You have no idea what you’re getting into. Computers are evil, perverse devices aimed at driving humans crazy.

The rest of Steve’s post is here.