Oliver & Ohlbaum: Paywalls and Online News research

8/8/2019 Oliver & Ohlbaum: Paywalls and Online News research

1/8

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


2/8

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


3/8

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


4/8

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


5/8

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


6/8

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

6


7/8

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

7


8/8

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]

Oliver & Ohlbaum: Paywalls and Online News research

Documents

Transcript of Oliver & Ohlbaum: Paywalls and Online News research