Newspapers and magazines have been experimenting with new business models for profiting from online content. Pricing content that was previously free can be a challenge, however.
The
Guardian, for example, began to transition from free online content by
selling an app (see above). More than
100,000 people have bought the app so far. From this fall, however, it will charge for a yearly subscription to online content that was formerly free. Will the
Guardian be able to convince readers to pay a full-year fee instead of buying a much lower-priced one-time app?
The
Financial Times (owned by Pearson, which publishes my textbooks) has been successful in
pricing its online content at several levels. In fact, the paper is so confident in its subscription strength that it's
publicly revealed its online and print circulation figures.
How many readers will pay for online content--and how much will they pay? Watch for more pricing experiments as the industry monitors reader reaction and searches for the optimal price point.
