The year 2014 could see a dramatic shift in the media landscape, with at least one of New Zealand's major newspapers expected to put its website behind a paywall.
Already the National Business Review (NBR) and at least two regional papers have embraced the idea, with some success.
The Whakatane Beacon decided to introduce a paywall for its website back in March.
"We just thought it was unsustainable to give you a product that you are expecting people to pay for in a newspaper format and give it away for free online," says Whakatane Beacon managing editor Mark Longley.
Many were sceptical, but online subscriptions are ahead of forecasts, with many coming from outside the region.
"After the initial shock people really took it on board and subscribed," says Mr Longley.
The Ashburton Guardian's website is also behind a paywall and is profitable.
The National Business Review also charges for its online content, and makes no apologies for doing so.
"Quality content costs," says NBR publisher Todd Scott. "So we figured if we went out there and put more resource into it went to our member subscribers and asked them to pay for it they would."
He says the website was losing $10,000 a week. Now, it's making money.
"You have now got an income that can be relied upon from your member subscribers, so they become your focus," says Mr Scott.
They're all targeting a specialist readership.
Overseas, some news sites are doing better than others.
"They create about 10 percent of a news publisher's revenue and it's not enough. But there are some examples like the New York Times, which has been doing quite well," says AUT communications studies lecturer Merja Myllylahti.
Here in New Zealand, 3 News has no plans for a paywall, but Fairfax is looking at the idea.
APN says it has plans for some sort of paywall for the New Zealand Herald - probably modelled on the New York Times, which allows people to read a certain number of articles for free each month before they have to pay.
"If they launch and Stuff doesn't launch, what happens to the traffic? Is the traffic from the online Herald website going to go to Stuff? So it's a very interesting development to see," says Ms Myllylahti.
Those who have already done it have some thoughts on what does and does not work.
"You have got to choose what you want to specialise in," says Mr Scott. "You have got to work out what value people will have. People have got to have a need for what you are offering, otherwise they are not going to pay you anything."
What the Herald plans for its paywall should be clear by June.
3 News
source: newshub archive
