Yesterday, the Argus Leader announced that they will be moving toward a subscription model for their online content. Readers no longer will be able to visit ArgusLeader.com and expect to be able to read all the content for free. I didn't visit the website too often, but I'll miss the freedom to come and go as I please without being an online subscriber.

By now, most of us and have seen this paywall subscription model being offered by various news sources. Until recently, subscriptions were required from some larger print publications but rarely were part of the local or regional online news ecosystem. When a paper from a relatively small city such as Sioux Falls, SD moves in this direction it isn't difficult to acknowledge this as the trend we'll be seeing followed by more newspapers in the coming years. The move toward a subscription model was inevitable, as research as shown time and time again that publications haven't seen the same revenue through online advertisement as they once did in the print media world of yesterday.

Revenue from online ads for niche sites like mine that have little overhead is enough. But real publications producing high quality content on a wider scope have genuine revenue concerns when providing you their content. Randell Beck of the Argus Leader acknowledged this in Sunday's edition of this paper.

There has been a lot of articles written lately on Rupert Murdoch's latest comments regarding the need to charge online readers for the content they access to the business model The Wall Street Journal utilizes. Murdoch recently announced that additional News Corp's newspapers would be charging users access to their online content.

Speaking on a conference call as News Corporation announced a 47 percent slide in quarterly profits to $755 million, Murdoch said the current free access business model favored by most content providers was flawed.

"We are now in the midst of an epochal debate over the value of content and it is clear to many newspapers that the current model is malfunctioning," the News Corp. Chairman and CEO said.

"We have been at the forefront of that debate and you can confidently presume that we are leading the way in finding a model that maximizes revenues in return for our shareholders... The current days of the Internet will soon be over."

That pay for content business model that Murdoch wishes to spread to the the rest of the News Corp holdings has worked pretty well for the WSJ. Yearly subscription to WSJ.com is around $100 and the business news site recently introduced a cheaper micro-payment system. Deane Barker recently pointed out this story on his Gadgetopia blog. Barker points out that this business model could possibly work for additional online news sources, but Murdoch needs "another big player on the bandwagon, and he might kick the snowball off the hill. Gannet? New York Times Company?". Barker's point is that for News Corp's subscription model to work, access to news content needs to be limited at other places online too. In my opinion, a fight against free online content is a war that has already been lost.

As a subscriber to the WSJ in both print and online content, I do see paid online subscriptions working for niche news sites. I however have serious doubts that the model can work for general news. People are willing to pay and only pay for content they can get nowhere else online. The news articles found in the WSJ is unique content and since its also content of value, I'm willing to pay for it. However, reporting general news is a much different game. Even if the majority of newspapers started charging access to their content it only takes one newspaper willing to offer that same story for free to break the pay for access model.

The Pew Project for Excellence in Journalism does a fantastic job reporting annually on the state of the American news media.  The Pew Project's sixth edition for 2009 is no exception and provides lessons for all businesses on the importance of agility, adaptability, and competitiveness.  The following paragraph from the report's introduction says it all.

Journalism, deluded by its profitability and fearful of technology, let others outside the industry steal chance after chance online. By 2008, the industry had finally begun to get serious. Now the global recession has made that harder.

This is the sixth edition of our annual report on the State of the News Media in the United States.

It is also the bleakest.

I have friends in the businesses of radio, television, and newspaper.  I take no pleasure with seeing people's careers in jeopardy due to all the rapid changes taking place in their profession.  What is truly sad to me is that the owners and managers of traditional media seemed to deny for too long what was happening.  The event is even sadder because it seemed obvious to many of us that look at industries from an information technology perspective where things would be headed.

Yet, I still think there is hope for those that remain in the field of journalism in the years to come.  How ever bleak 2008 and 2009 is for journalism, I predict quality journalists will continue to make their mark in the new media. Successful entrepreneurs will tell you that there is always opportunity to be found in chaos.  Given the current chaotic state of the news media, I would venture to say that there is a bumper crop of opportunities just waiting to be found.

Whew...I can now cancel my order of the 100-Pack HP print cartridges before printing up my next bestseller!

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