Friday, April 12, 2013

Borrell Report: Paywalls Successful for Newspapers

http://www.bloomberg.com/news/2013-04-10/gannett-times-co-web-paywalls-have-been-a-success-report-says.html
Gannett Co. (GCI), New York Times Co. (NYT) and other newspaper publishers are finding that consumers are willing to pay for online subscriptions for access to local news content, according to a report from Borrell Associates Inc.
Gannett, the owner of daily newspapers including USA Today, had 46,000 online subscriptions at the end of 2012, two-thirds of which were new readers, the Williamsburg, Virginia-based researcher said in a report being released today. Times Co. last year generated more revenue from circulation than from advertising -- in part because it “led the way” charging for online access, Borrell said.
Times Co., Gannett and others have been building these so- called paywalls in an effort to make up for lower advertising sales and print subscriptions. Still, only about 25 percent of all newspapers had done so by the first quarter.