Bezos voices skepticism on paywalls, advertising

Jeff Bezos
Jeff Bezos

Two quick takeaways from Jeff Bezos’ interview with The Washington Post, his first since announcing last month that he would purchase the paper for $250 million:

1. He sounds like an ink-stained wretch whining about The Huffington Post in denouncing the evils of aggregation, telling the Post’s Paul Fahri:

Even behind a paywall, Web sites can summarize your work and make it available for free. From a reader point of view, the reader has to ask, “Why should I pay you for all that journalistic effort when I can get it for free” from another site?

2. Despite his  skepticism about paywalls in the age of aggregation, Bezos is not ready to embrace the idea of free content supported by advertising. “I’m skeptical of any mission that has advertisers at its centerpiece,” he said. Good thing: newspaper ad revenues are in the midst of a stunning decline, as this chart demonstrates.

So, if paywalls aren’t the answer and neither is advertising, what will work? Relentless experimentation, combined with time, resources and patience. That’s what the Amazon.com founder brings to the table.

Photo (cc) via Wikimedia Commons.

Paywalls, empowerment and “information apartheid”

John Paton

Nicole Narea and Clifton Wang of the Yale Daily News have written a preview of “The Wired City,” which is primarily about the life and times of the New Haven Independent, an innovative online-only nonprofit news site.

At a moment when online paywalls have become one of the biggest issues debated within the news business, it’s interesting that both the Independent and its newspaper competitor, the New Haven Register, have decided to keep their sites free. Here’s what Independent founder and editor Paul Bass tells the Yale Daily News:

We need to cut down on the information apartheid. If we are going to construct a paywall, we may as well not publish. We believe in community empowerment through journalism.

Of course the Register, as a for-profit entity, has a different challenge: selling enough online advertising to justify its decision to continue giving away its news. It’s a philosophy that John Paton, chief executive of the Register’s corporate parent, the Journal Register Co., describes as “Digital First.”

Journal Register is currently in bankruptcy for the second time in four years, but is expected to re-emerge later this spring. No doubt it’s going to be painful — among other things, employees have been told they will have to reapply for their jobs, and it is far from clear how many will be rehired. The Newspaper Guild-Communications Workers of America recently had some tough words for Journal Register, reports Bill Shea of Crain’s Detroit Business.

As Joshua Benton of the Nieman Journal Lab observed last September, the re-emergence from bankruptcy will also represent the best chance for Paton — one of the most closely watched executives in the newspaper business — to prove that a digital orientation can turn around a legacy newspaper chain with a lower-revenue, lower-cost approach. Interesting times ahead.

Photo found at Newspaper Death Watch.

Brian McGrory wants to restrict free Globe content

Brian McGrory

Recently I reported for the Nieman Journalism Lab that The Boston Globe was tightening up on social sharing and on how much Globe content it offers on its free Boston.com site. Today Andrew Beaujon of Poynter.org interviews Globe editor Brian McGrory, who tells him that free Globe articles will increasingly become a thing of the past.

“We’re going to start removing our in-depth Globe journalism from Boston.com, which is not a small move,” McGrory says.

The new editor describes his goal as “untangling” the paid BostonGlobe.com and the free Boston.com sites, telling Beaujon that Boston.com will feature “more social media, more community bloggers, hopefully edgier content.” Breaking news will continue to run on Boston.com, but news stories will likely be no longer than 150 words.

When Globe publisher Christopher Mayer announced in the fall of 2010 that the paper would pursue paid digital subscriptions, McGrory, then a columnist, was one of its most enthusiastic proponents (scroll down past my Q&A with Mayer).

(And by the way, we’re now up to 150 words.)

The Globe has to pay the bills, of course. I just hope McGrory and company understand how many free alternatives are out there. Even if they’re not as good as the Globe, they may prove to be good enough for those determined not to pay. An overly restrictive paywall could also trigger new competition.

I’ll make one suggestion that might help McGrory accomplish his goals while at the same time ensuring that the Globe remains part of the online conversation. The Globe’s corporate big brother, The New York Times, allows people access to 10 stories a month before the paywall kicks in.

That seems reasonable, given that anyone who wants to read the Globe regularly is going to click at least 10 times a day. I hope the Globe considers it.

The Boston Globe’s paywall is raised a little higher

be02f758328311e2b55612313804a1b1_7This article appeared earlier at the Nieman Journalism Lab.

The flexible paywall that The Boston Globe introduced for its subscription website about a year and a half ago has slowly gotten a little less flexible. Fewer Globe stories are available on the paper’s free Boston.com site, and restrictions have been placed on social sharing.

The reason, according to Globe spokeswoman Ellen Clegg, is that the paper’s executives are still trying to figure out how to get paid online journalism right in a world awash in free news.

“The core of our two-brand strategy,” she told me by email, “involves trying to find the optimal balance between a free, ad-supported model and a premium, consumer-supported model.”

The restrictions were brought home to me recently when I learned that the paper had started limiting social media sharing to only two free links a month — a serious limit on someone like me, who regularly shares links on my blog, on Facebook and on Twitter. As a subscriber, I can share as many links as I like, of course. But non-subscribers can only click on two before getting a message that they cannot pass go.

So let’s run down the changes, shall we?

First, those social-media links. Clegg says that when BostonGlobe.com went live in the fall of 2011, social sharing was limited to five links per month. If so, it wasn’t well publicized. I’ve gone back and looked at some of the coverage, including a piece I wrote for the Nieman Journalism Lab and the Globe’s own FAQ, and can find no mention of a monthly cap.

In any case, Clegg says that in December 2012, that number was cut to two links a month from search and social media — “per device, and per browser.” In other words, eight a month if you want to juggle among Chrome, Safari, Firefox and Internet Explorer (but who wants to do that?), and more if you move back and forth among other screens. “Email sharing,” she adds, “is unlimited.”

Second, when BostonGlobe.com debuted, the editors selected five stories a day that would also run on the free Boston.com site. Most sports stories ran on Boston.com as well. Last April, the number of free news stories was cut from five to four, and some additional sports content was moved behind the paywall.

“This is part of an effort to continually experiment, test and analyze how our readers engage with us digitally,” Clegg says. “We have been trying to find the right balance between the free-sharing culture of the Internet and paid access to premium Globe content. We believe that we can only arrive at that balance through experimentation.”

How well is it working? The Globe’s digital subscription base has risen, but slowly. Currently, Clegg says, the Globe has about 50,000 paid digital subscribers — but that doesn’t mean 50,000 people paying directly for a digital subscription. It’s a figure that includes digital-only subscribers; Sunday-only print subscribers (I’m one of them), who automatically get seven-day digital access; and seven-day print subscribers who access BostonGlobe.com at least once a week.

That’s how digital subscriptions are counted by the Alliance for Audited Media (formerly the Audit Bureau of Circulations), and it’s a pretty expansive definition. As I’ve written before, about half of those counted as Globe digital subscribers get the paper delivered to their doorstep all seven days.

So is the decision by Globe executives to tighten the paywall smart or dumb? It’s hard to say. From the beginning, the idea behind the paid BostonGlobe.com site was to find a way to get regular readers to pay without turning away occasional readers and without hurting the free, advertiser-supported (and just-redesigned) Boston.com site. (Here is how Globe publisher Christopher Mayer explained it to me shortly after plans to build the paywall were announced in the fall of 2010.) Today, Clegg says, Boston.com attracts about 6 million unique visitors a month. Another 1.5 million uniques a month visit BostonGlobe.com, mainly as a result of the site’s free-access features.

I know that since I learned about the two-links-per-month limit, I’ve been looking for the equivalent content in Boston.com’s news blogs or elsewhere. I tend to shy away from BostonHerald.com unless I’m writing specifically about the Herald, since much of its content moves into the paper’s paid archives after two weeks. But there are plenty of other sources of free local news, even if it’s not always of the same quality as the Globe’s.

I’m inclined to cut the Globe some slack as Mayer, editor Brian McGrory and company grope their way into the future. But the new rules have already nudged me away from Globe content, and I’m a paying customer. That can’t be a good thing.

Coughing up (or not) for online content

I have been in the throes of rewriting my book the past few weeks, which is why blogging has been sporadic. But let me pause to offer a reading suggestion — Howard Owens’ 10 arguments against paywalls for online news, published yesterday by the Columbia Journalism Review.

Particularly good is No. 9: “Paywalls don’t address the fundamental issues facing newspapers.”

Although I’m not as resolutely opposed to paywalls as Owens, he lays out the arguments against them intelligently and forcefully.