Charge for mobile content now or never!

Robber barons on their way to charge for digital content

Takeaway: The "App" will dominate over the "Browser" in the coming years. This opens the unique chance to introduce payment options for digital content. But it is a "one and then gone" chance. So make sure your newspaper does not miss it.


Maybe the iPad gives us some insight, what the future usecase for the newspaper will be.
Newspapers experienced an online problem in the past years: They gave away their content for free and are now looking for new digital revenue streams as their print revenues are shrinking. Look at Rupert Murdoch, what happens now: Newspapers like "The Times" which  are changing to "Paid Content" models are now facing hard times with their ad revenues, because the sponsors are not ready to advertise behind payment walls.

So let's take the facts in chronological order to see what changes the mobile age has to offer the industry. And what necessary implications this has for recentproduct development.

The lost Google wars. 
First newspapers had to face new competitors, that attracted their audiences: From the shopping portals (eBay) to the search engines (Google) to the web portals (Yahoo).
Newspaper Portals took their lessons, optimized for search engines, which resulted in more traffic. From 2002 on, due to the rise of Google, all web content had to be free. Remember, that after the Dotcom crash in 2000, all experts had predicted rising paid content revenues. But then all papers still changed their strategies to free models, except for the Wall Street Journal, all in fear to loose groundagainst direct competition.

For the fish
Few newspapers were able to monetize this search engine traffic, as they struggled hard to turn SEO-visits into returning visits. It can be compared with the paper that is used to wrap the fish: it could be any paper for the fish and it will not produce the next newspaper sale.
Far more: papers got "addicted"to newspaper traffic, as CPMs dramatically fell and the only way to stabilize online revenues was to optimize the Google & Co traffic sources

So the search engine strategy failed and moreover users of the fallen papers where not ready to pay for the online content.

Now for the first time since 2000 newspapers face a real chance to introduce paid content again with the iPad. According to a recent study of the Ball State University, iPad-Users prefer reading newspapers on their iPads. The new device therefore outbeats the traditional paper and the online editions.

And with "App" as the dominating presentation layer, the access barrier (Log-In) is automatically back in users daily routine. If you read the App-Comments of most Apps, you realize, that many users still dislike payments and Log-Ins, but still, more than 90 percent are ready to use these apps.

Conclusion: So with more devices to come, think of HTC with its Windows Phone, think of Nokia and all the Android  mobiles, the app will dominate over the web-browser. And with that paid content strategies have a chance to succeed. Still, if you give away the content for free now in an app, you will once again not be able to charge for it later.
For us all in newspaper business: Let us not miss this chance.