UPDATE: News Corp. To Put Australian Papers Behind Paywalls
07 6월 2011 - 12:22PM
Dow Jones News
News Corp.'s (NWS) Australian unit announced details Tuesday of
plans to put its domestic newspapers behind online paywalls as it
seeks to extract more revenue from readers searching for news on
the web.
From October, national broadsheet newspaper The Australian will
go to a "freemium" model for its news--offering free basic stories
but charging for premium content such as features. Online access
will start at 2.95 Australian dollars (US$3.16) a week, said
Richard Freudenstein, chief executive of News Ltd.'s digital
business and The Australian.
"A lot of The Australian's content is unique and is of value to
its readers," Freudenstein told a conference in Sydney. News Ltd.'s
tabloid publications including Melbourne's Herald Sun and Sydney's
Daily Telegraph will adopt similar models at a later date, a
company spokesman said without providing more detail.
Faced with a tougher market and the free availability of news
via online search engines, The Australian is following other News
Corp. print titles such as The Times of London by implementing an
online paid content strategy. News Corp. also owns Dow Jones
Newswires and The Wall Street Journal, which already charge for
online content. Freudenstein declined to estimate how many online
subscribers News Ltd. will attract but said it was "pleasantly
surprised" by market research indicating how many people would be
prepared to pay.
Fairfax Media Ltd. (FXJ.AU), which publishes the Sydney Morning
Herald and The Age, hasn't said when, or if, it plans to charge
online for its major broadsheets. Fairfax already charges online
for premium business content in the Australian Financial
Review.
"We're not expecting to lose huge amounts of traffic. We could
certainly afford to lose some traffic and still maintain our
advertising revenue," Freudenstein said.
New York Times Co. said last month that its push to charge the
online readers of its flagship newspaper is faring better than
expected, with more than 100,000 people having paid for online
access since it began charging readers three weeks earlier.
Although The Times of London experienced a sharp decline in web
traffic when its paywall went up last year, Freudenstein said it's
making more money from its 79,000 digital subscribers than it did
from the 20 million unique browsers it used to have.
The News Ltd. spokesman decline to say how much revenue it's
Australian newspapers generate each year. Operating income from
News Corp.'s global newspapers and information services division in
the year to June 30, 2010 of US$530 million accounted for about 13%
of group income.
-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692;
Ross.Kelly@dowjones.com
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