Study Finds 48% of Americans Willing to Pay for Online News
Study Finds 48% of Americans Willing to Pay for Online News
Posted 11/16/2009 at 2:04pm
| by Bart Salisbury
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There’s good news and bad news for Rupert Murdoch in a study recently published by the Boston Consulting Group. People are willing to pay for online content, supporting Murdoch’s insistence it shouldn’t be given away free. But, the study reveals, they aren’t inclined to pay a whole lot for that content, possibly leaving Murdoch no better off then where he is right now.
The study included the United States, Western Europe, and Australia. Forty-eight percent of Americans, classified as regular Internet users, said they were willing to pay for online content. This, along with Great Britain’s Internet users, was the lowest the study recorded. Most other countries reported about 60 percent of users would be willing to pay.
But, on average, Americans said that online news was worth only $3 a month, again a bottom figure (which tied with Australia). Italian Internet users were the most generous, on average saying they’d pay $7 for such a service.
The lack of willingness to pay, and the relative tight-fistedness of Americans is a reflection of content availability, says John Rose, a senor partner in the Boston Consulting Group. According to Rose: “Consumer willingness and intent to pay is related to the availability of a rich amount of free content. There is more, better, richer free in the United States than anywhere else.” According to Rose, a banding together of major news providers in the United States wouldn’t help because of the availability of other free sources on the Internet users can access.
The study concludes that newspapers which charge for online content probably won’t see a big increase in revenues, but, because online content is cheaper to provide, profits should increase. Maybe that will be enough to make Murdoch happy.
Image Credit: Mattes/Wikipedia Commons
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JDK
November 17, 2009 at 2:27pm
Another study shows that the remaining 52% are calling B.S. on the the original 48%.
IOW....figures lie and liars figure.
Need further proof?
The story was printed by The New York Times....a newspaper. The "study" by BCG states "In addition, consumers are more likely to pay for online news provided by newspapers than any other media"
And who is the Boston Consulting Group? Their words:
"We partner with our clients to deliver customized solutions that resolve their most significant issues and create lasting competitive advantage".
I'll let you all put two and two together on that one. Funny thing about surveys....the outcomes can be slanted simply in how the questions are worded.
They are a CONSULTING firm. Just dig around their website a bit, see what they are all about, and this whole article falls to pieces pretty quick.
RESEARCH
MeTo
November 17, 2009 at 8:01am
When they charge a monthly fee they go from millions of visitors to hundred's of thousands visitors. That means they will lose millions in advertising. Sounds like a lose lose situation to me.
Biceps
November 16, 2009 at 3:43pm
I would pay $20/month for real news from around the world, delivered by unbiased sources with verifiable sources and stories about things that matter. In other words, not FOX 'News'. Video + Radio + text all in one place would be great and worth paying for. The biggest problem with almost all of the newspapers now is that they want to limit the news they provide people, then charge for it. Censorship (even covert censorship - here's looking at you, NY Times) is a hard sell, and I won't pay for it.
reutnes
November 16, 2009 at 3:17pm
I would pay for it as long as it was no costly than the newspaper I pay to have delivered every morning. If it was more than that, then I'd stick with the paper.
MRrelabled
November 16, 2009 at 3:21pm
There is no reason, to pay for it if it doesn't cost to print or deliver it. Advertising pays enough.
MRrelabled
November 16, 2009 at 3:19pm
48% of internet users not of the whole, even that is way high. The reason businesses aren't doing so well is because of the lack of basic math skills, this article is proof.
Erenox
November 16, 2009 at 2:29pm
The current financial model for news delivery in America is working just fine. It is profitable (depending on the subject and medium) and works just fine.
The only reason to change it would be pure and simple greed. News Corp already owns most of the media in the world, you can't tell me they are losing money.
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