
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.