Tuesday, April 27, 2010

Pay walls cost visitors, but what about profits?

As the news business continues to struggle through dark days, we're beginning to see some glimpses of light -- not necessarily good light, but lighting up certain pathways.

For example, we now have some data about what happens when we erect pay walls. In this latest case, figures are now available for both Variety and Newsday, publications that erected pay walls. Both initially took huge hits in page views, but those have stabilized in both cases. So the question becomes: Are you making more money with a pay wall than without? With a corollary: Are you profitable? We're still waiting for those answers.

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