The Clash Over Free Online Content Free vs. The Establishment Media Jody Chatalas COM548 October 20, 2009

Friedman: “ There’s No Free Lunch.” Anderson: Free is the new economic model. News Organizations: Everybody is reading our content online. We should be charging for it.

“ No Free Lunch” - Columbia Journalism Review, July/August 2009

Free/Paid Hybrid Model People already do pay for content they deem valuable “ Freemium” approach: Paying for an upgrade Need to invest in creating content people will pay for “ Open for Business” - Michael Shapiro

Network television model free access mass audiences high ad rates Cable television model subscription fees ad revenues driven by quality & niche content Embrace links to bring visitors to sites… but now complains about aggregators making money off of the links. Now wants to start charging for access BeTheMedia.org Establishment Media Conundrum

Network television model

free access

mass audiences

high ad rates

Cable television model

subscription fees

ad revenues

driven by quality & niche content

Embrace links to bring visitors to sites…

but now complains about aggregators making money off of the links.

Now wants to start charging for access

2005 study surveyed 853 residents of Hong Kong Very few would pay: 22 percent likely to pay, but depending on conditions They tend to be older and newspaper subscribers Will be tough to change this mindset of free content “ Willingness to Pay for Online News…” - Hsiang Iris Chyi, Journal of Media Economics

Discussion Topics Are you willing to pay for online content? Under what conditions? Is it too late to begin charging for access? What should media organizations do to increase revenue in this “free” climate? What about the link economy… Is it helping or harming news organizations?