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The Tampa Journal

Assessing the feasibility of charging for online content. The Tampa Journal. The Issue. The newspaper industry as a whole is struggling Advancing with the times, most newspapers offer their content online for free This has done little to help revenues

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The Tampa Journal

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  1. Assessing the feasibility of charging for online content. The Tampa Journal

  2. The Issue • The newspaper industry as a whole is struggling • Advancing with the times, most newspapers offer their content online for free • This has done little to help revenues • Now newspapers are considering charging for online content, as a way to offset revenue loss from lack of print sales • Our job is to consider the feasibility of The Tampa Journal charging for online content

  3. The Tampa Journal First published in 1863 Largest circulation in Tampa Bay area, although numbers are steadily declining tampajournal.com launched in 1995 Since the launch of this website, subscriptions are down 8%

  4. Recommendation • Utilize a hybrid method of charging for exclusive content, while keeping national/international, pro sports, AP news releases, obituaries, and weddings free • Suggested Pricing Option

  5. Agenda We will discuss: • Payment Methods • How the Albuquerque Journal, The Newport Daily News, the Arkansas Democrat-Gazette, and The Wall Street Journal charge for online content • Similarities/Differences between newspapers

  6. Agenda (continued) • Financial comparisons • The limitations of our report • Last, why we recommend using the hybrid method of charging for online content

  7. Payment Methods

  8. Payment Methods cont.

  9. Payment Methods cont.

  10. Payment Methods cont.

  11. Albuquerque Journal • Largest newspaper in New Mexico with circulation of 216,375. Implemented online payment strategy in 2001. • Payment Options:

  12. Demographics • Median Age: 35 • Median HH Income: $38,272 • Race: 70% white

  13. Success or Failure? • Sales: -6% • Overall: Partial success. According to the newspaper: Success-sales would be worse if free online content. According to us: Partial-Although consistent numbers over the years, they’ve been consistently hovering at -6%

  14. The Newport Daily News Published in Newport County, Rhode Island. Circulation of about 12,000. Began charging for online content in June 2009. Payment Options:

  15. Demographics • Median age: 37.4 • Median HH Income: $50,000 • Race:88% white

  16. Success or Failure? Since June, sales are +8% Website traffic is -30% Goal of online pay wall was to protect sales of print edition Mission accomplished

  17. Arkansas Democrat-Gazette Published in Little Rock, Arkansas. Daily circulation of 182,350. Began charging for online content in 2002. Payment Options:

  18. Demographics • Median age: 35 • Median HH Income: $37,572 • Race:54% white

  19. Success or Failure? Began pay wall to protect sales of print edition After pay wall, print sales only went up 1.7% Small number, but consider what happened to similar newspapers that did NOT charge online

  20. The Wall Street Journal • Largest circulation paper in the U.S. WSJ.com launched 1996. • Payment Options:

  21. Demographics • Both print and online readers are mostly older, white males with college degrees who make well above $60,000. • Gender: • Online: 63% male • Print: 81% male • Age: • Online: 35+ • Print: 45+

  22. Success or Failure? • Overall: Complete success. • One of the first papers to charge. • Everyone thought WSJ was crazy. • Sales risen .6% last year from $2.07 million to $2.08 million.

  23. Similarities & Differences Demographics *population of all Rhode Island **WSJ is a nationally read newspaper ***Online edition only

  24. Results • Albuquerque Journal: Paid daily circulation down 6% • The Newport Daily News: Single-copy sales up 8% • Arkansas Democrat-Gazette: Daily circulation up1.7% since 2002 • The Wall Street Journal: Total average paid circulation up .6%

  25. Financial Comparisons

  26. Limitations • Limited number of newspapers that charge for online content. • Few of those that charge for online content are comparable to the Tampa market. • Lack of financial information. • Not much information on the papers is publically accessible. • Information that is available is not always comparable.

  27. Conclusion Our company is for-profit We are losing money right now In the face of uncertainty, information can guide you to success The information available is clear: charging for content online will protect sales of our print edition

  28. Conclusion (cont.) Start charging immediately How will we determine if it was a success? Prediction: daily website visitation will decrease 5% at most and daily print circulation will grow by at least 8% We’ll see you in 6 months!

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