Oliver & Ohlbaum: Paywalls and Online News research
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Transcript of Oliver & Ohlbaum: Paywalls and Online News research
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8/8/2019 Oliver & Ohlbaum: Paywalls and Online News research
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PAYWALLS AND ONLINE NEWSA PRESENTATION BY OLIVER & OHLBAUM ASSOCIATES, WESTMINSTER MEDIA FORUM
The Royal Aeronautical Society, No.4 Hamilton Place, London W1J 7BQ2nd December, 2010
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MONETISING NEWS ON THE WEBWho delivers the paper?
Only 5 per cent of respondents who were regular specific newspaper title buyers had a direct subscription with thatnewspaper
Directsubscription
Newsagentdelivery
Supermarket
Newsstand /newsagent
Where do you buy the following national newspapers?
Source: O&O Survey, November 2009 (n=2,600) 2
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MONETISING NEWS ON THE WEBOnline promiscuity versus loyalty
Less than 10% of online news consumption is attributable to the website of the respondents claimed favourite newspaper
Other
News aggregators
Other TV news
BBC
Local paper
Quality press
Mid-market press
Popular press
Own site
Index of total use(average = 100)
107 90 130 98 62 89 63 84 177
Online newspaper habits by newspaper readership loyalty (i.e. named favourite newspaper)
Source: O&O Survey, November 2009 (n=2,600) 3
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MONETISING NEWS ON THE WEBThe issues with micropayments
Micropayments have been heralded as providing a potential solution to low advertising yields online but there aresignificant issues associated with such payment models
PROBLEM INDIVIDUAL COMPANY PERSPECTIVE SECTOR PERSPECTIVE
ADVERTISING SACRIFICE
Needs 5-10% take-up to be greater than ad
revenues
Undermines overall reach proposition if done on alarge scale
If sector ad revenue share is largely azero-sum game then micropayments
likely to add to total revenues
FREE RIDER PROBLEMS If we charge, others find it optimal to offer content
free
Need to find a mechanism to punish free
riders Or, hope there is little substitution
between providers
UNBUNDLING ESTABLISHED
PAY MODELS
If not currently charging for news in core businessthen extra revenue potential
If established newspaper, could cannibalise and
dilute revenue if dont get bundling right
Need to co-ordinate price points between
unbundled and bundled payments
DISINTERMEDIATION Content packagers under threat from being cut out
by platforms / content owners
Need to find a way to distribute revenueto incentivise all players along the valuechain
Source: Oliver & Ohlbaum Analysis 4
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MONETISING NEWS ON THE WEBThe rise of mobile access to news
Smart phones are encouraging people to consume news via mobile devicesand some even pay for itbut a third say it
is likely to make them spend less on traditional newspapers
% of respondents who regularly access news via their mobiles % of mobile users less likely to pay for newspapers (due to availability of news on mobiles)
Source: O&O Survey, November 2010, (n=1,459)
% who pay fornews on mobiles
21%
14%
18%
5
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33
12
8
10
4
2
0 10 20 30 40 50
2010
2009
2008
A lot
MONETISING NEWS ON THE WEB
% respondents who have watched video clip on mobile phoneover last 12 months
The rise of TV news on the web
Source: O&O Survey, November 2010 (n=621)
27
33
37
42
3
7
16
20
0 10 20 30 40 50 60 70
45 to 54
35 to 44
25 to 34
16 to 24
% of those who have watched via mobile whathave they watched?
DIYMaterial
2010
2009A bit
There has been a rapid increase in video access via mobiles, UGC is still important, whilst news and TV channel contentis growing
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MONETISING CONTENT ON THE WEBThe Timespaywall
Uptake of Times online (via any device) among The Times newspaper readers was quite strong. For those previous Timesonline users not choosing to subscribe, the most popular alternative online source to move to was the BBC
Source: O&O Survey, November 2010, (2,737 respondents)
Use of Times website before paywall
Never
Less thanonce aweek
At leastonce aweek
Use other
free sites
Subscribein someform
JuststoppedusingTimes
site
Other /Not sure
BBCwebsite
Other TVNews
Newsaggregators
Nationalnewspapers
Localnewspapers
How did readers react to the paywall? Where did those who moved shift to?
% of readers
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AND FINALLY
GOOD LUCK OR FIND OUT MORE
MAKING MONEY IN THE ON DEMAND MEDIA AGE
Wednesday, December 8th, 2010 9.30 AM to 12 NOON
Invite only (But FREE)
O&O / LONDON SCHOOL OF ECONOMICS
THE LINCOLN CENTRE, LINCOLNS INN SQUARE
To get an invite
Call: 020 7 313 5900
Email: [email protected]