Valérie-Anne Bleyen - Leo Van Hove 19 March 2009 Vrije Universiteit Brussel SESSION 3: A LA CARTE OU PAS ?

OUR RESEARCH EVOLUTIONS IN THE ONLINE REVENUE MODELS FOR ‘TRADITIONAL’ CONTENT 2 MAIN RESEARCH QUESTIONS (RELATED) FREE OR FEE? ACCESS OPTIONS TO THE SITE?

EVOLUTIONS IN THE ONLINE REVENUE

MODELS FOR ‘TRADITIONAL’ CONTENT

2 MAIN RESEARCH QUESTIONS (RELATED)

FREE OR FEE?

ACCESS OPTIONS TO THE SITE?

OUR SCOPE: NATIONAL NP S - WE Period June-July 2006 and 2008 82 newspapers > 8 countries All national, daily paid-for newspapers Belgi um ( 9 ) - the Netherlands ( 8 ) - Luxembourg ( 6 ) - France ( 11 ) - Germany ( 10 ) - Italy ( 20 ) - Spain ( 8 ) - the United Kingdom ( 10 ) Listing conform WAN-report (2006) & national coordinating organisations Not: - regional and local newspapers - freely distributed newspapers - overly specific target audience DATA COLLECTION = SELECTIVE BUT EXHAUSTIVE

Period June-July 2006 and 2008

82 newspapers > 8 countries

All national, daily paid-for newspapers

Belgi um ( 9 ) - the Netherlands ( 8 ) - Luxembourg ( 6 )

- France ( 11 ) - Germany ( 10 ) - Italy ( 20 ) - Spain ( 8 )

- the United Kingdom ( 10 )

Listing conform WAN-report (2006) & national

coordinating organisations

Not:

- regional and local newspapers

- freely distributed newspapers

- overly specific target audience

AGENDA I. DEFINITIONS II. MAIN FINDINGS III. CONCLUSION

I. DEFINITIONS

II. MAIN FINDINGS

III. CONCLUSION

I. THE ‘FREE OR FEE’-DILEMMA THE PHILOSOPHY BEHIND OUR APPROACH IS BASED ON THE NATURE OF THE REVENUE MODEL: “ DO NEWSPAPERS TRY TO MONETISE THEIR ONLINE CONTENT: DIRECTLY (by charging for content) INDIRECTLY (through advertising revenues)?”

THE PHILOSOPHY BEHIND OUR APPROACH IS BASED ON THE NATURE OF THE REVENUE MODEL:

“ DO NEWSPAPERS TRY TO MONETISE THEIR ONLINE CONTENT:

DIRECTLY (by charging for content)

INDIRECTLY (through advertising revenues)?”

I. THE ‘FREE OR FEE’-DILEMMA FREE = COMPLETELY FREE WEBSITE = ALL THE NEWS, COLUMNS AND ARCHIVED ARTICLES (IF AVAILABLE) CAN BE CONSULTED FREE OF CHARGE FEE = SOME CONTENT IS CHARGED FOR FEE LIGHT = only a charged-for PDF-version = rather ‘traditional’ approach FEE+ = something else/more than a charged-for PDF-version

FREE

= COMPLETELY FREE WEBSITE

= ALL THE NEWS, COLUMNS AND

ARCHIVED ARTICLES (IF

AVAILABLE) CAN BE CONSULTED

FREE OF CHARGE

FEE

= SOME CONTENT IS CHARGED

FOR

FEE LIGHT

= only a charged-for PDF-version

= rather ‘traditional’ approach

FEE+

= something else/more than a

charged-for PDF-version

I. UN-BUNDLED ACCESS OPTIONS 1. DAY PASS AND X-DAYS PASS A day pass gives complete access to the website for 24 hours. One can thus consult all the online articles for one day. A variant on the day pass method is the X-days pass, which gives access to the site for X number of days. 2. CREDITS-‘CARD’ (OR WALLET) Here the visitor of the site buys X credits at a certain price. With this card he subsequently pays one or more credits per article (often depending on the length of the article), after which the amount is deducted from the card’s balance. 3. PAY-PER-VIEW This access option gives the opportunity to purchase and pay for articles on an individual basis. B U N D L I N G

1. DAY PASS AND X-DAYS PASS

A day pass gives complete access to the website for 24 hours. One can thus consult all the online articles for one day. A variant on the day pass method is the X-days pass, which gives access to the site for X number of days.

2. CREDITS-‘CARD’ (OR WALLET)

Here the visitor of the site buys X credits at a certain price. With this card he subsequently pays one or more credits per article (often depending on the length of the article), after which the amount is deducted from the card’s balance.

3. PAY-PER-VIEW

This access option gives the opportunity to purchase and pay for articles on an individual basis.

AGENDA I. DEFINITIONS II. MAIN FINDINGS III. CONCLUSION

I. DEFINITIONS

II. MAIN FINDINGS

III. CONCLUSION

II. MAIN FINDINGS: FREE OR FEE? 32 out of 82 np s ∆ strategy Evolution 1: Move from FEE to FREE - 23 towards FREE; 9 towards a paying site - FREE np s  (country level: everywhere except in NL and DE)

32 out of 82 np s ∆ strategy

Evolution 1: Move from FEE to FREE

- 23 towards FREE; 9 towards a paying site

- FREE np s  (country level: everywhere except in NL and DE)

II. MAIN FINDINGS: FREE OR FEE? Evolution 2: Within FEE, a move from FEE+ to FEE LIGHT - FEE LIGHT  (country level: nowhere a decrease) - FEE+  2 evolutions go in same direction

Evolution 2: Within FEE, a move from FEE+ to FEE LIGHT

- FEE LIGHT  (country level: nowhere a decrease)

- FEE+ 

2 evolutions go in same direction

II. MAIN FINDINGS: FREE OR FEE? On a country level: BE: 77.8% S.Q. NL: 75% S.Q. 11.1% FEE LIGHT towards FREE 12.5% FEE LIGHT towards FEE+ 11.1% FEE+ towards FEE LIGHT 12.5% FREE towards FEE LIGHT

On a country level:

BE: 77.8% S.Q. NL: 75% S.Q.

11.1% FEE LIGHT towards FREE 12.5% FEE LIGHT towards FEE+

11.1% FEE+ towards FEE LIGHT 12.5% FREE towards FEE LIGHT

II. MAIN FINDINGS: SUBSCRIPTIONS VS. PPV Disappointed about the unbundled access options Become either completely FREE or offer only online subscriptions Day pass: BE: 55.6%  33.3% NL: 0%  25% PPV: BE: 0%  11.1% NL: 37.5%  25%

Disappointed about the unbundled access options

Become either completely FREE or offer only online subscriptions

Day pass: BE: 55.6%  33.3% NL: 0%  25%

PPV: BE: 0%  11.1% NL: 37.5%  25%

II. MAIN FINDINGS: SUBSCRIPTIONS VS. PPV Unbundled popularity  Online subscriptions  in NL and DE (cf. supra) Aggregate figures: (if 2 alternatives available, appearance in both categories)

Unbundled popularity 

Online subscriptions  in NL and DE (cf. supra)

II. MAIN FINDINGS: THE ARCHIVE More than half now have a FREE archive 8.5% of sample still does not have an archive yet BE: 22.2% abandons it NL: 12.5% free  12.5% fee

More than half now have a FREE archive

8.5% of sample still does not have an archive yet

BE: 22.2% abandons it

NL: 12.5% free  12.5% fee

II. MAIN FINDINGS: THE ARCHIVE “ Trial and error” approach?  8 sites from FREE to charged-for 11 from charged-for to FREE 6 sites started with the offering of an archive 4 np s simply removed it

“ Trial and error” approach?

 8 sites from FREE to charged-for

11 from charged-for to FREE

6 sites started with the offering of an archive

4 np s simply removed it

AGENDA I. DEFINITIONS II. MAIN FINDINGS III. CONCLUSION

I. DEFINITIONS

II. MAIN FINDINGS

III. CONCLUSION

III. CONCLUSION Evolution 1: FEE  FREE Evolution 2: FEE+  lighter revenue models PDF = low-cost, minimal-effort strategy (print content is digitised ‘as is’) Increasing aversion against unbundled access options Np s that still opt for a FEE+ strategy prefer subscription formulas Archive: free to attract visitors/ad revenues vs. a strict ‘walled-garden’ approach Chicken-and-egg problem ? Innovative payment instruments ∞ Unbundled access options 

Evolution 1: FEE  FREE

Evolution 2: FEE+  lighter revenue models

PDF = low-cost, minimal-effort strategy (print content is digitised ‘as is’)

Increasing aversion against unbundled access options

Np s that still opt for a FEE+ strategy prefer subscription formulas

Archive: free to attract visitors/ad revenues vs. a strict ‘walled-garden’ approach

Thank you for your attention Further questions: [email_address]