Malcolm Coles on why Murdoch’s plan will work

August 10, 2009

Malcolm Coles has an extensive post on how Murdoch’s plan to charge for online content – contrary to popular belief – might just end up working. His justification revolves around the quality of content being produced by The Times and The Sun and the unique position of Murdoch, allowing him to offer exclusive, multi-platform content through a variety of pay schemes:

  • What if they add 50p on to the cost of Sky broadband subscriptions and bundle it as a non-optional part of the package? Straightaway, they would have more than 2 million subscribers to the Times or the Sun online – an instant success.
  • What if each copy of the Times/Sun papers came printed with a unique code that gave 24 hours’ access to the site. As people became used to the site, maybe they would be prepared to pay for ongoing access.
  • What if subscription included online access to Sky channels, so you could watch Premiership football live?
  • What if newsagents sold pre-paid access: £5 for a card with a unique code that gives you a week’s access

It’s worth reading the full piece. However, this comes on the same day that the Guardian publishes an in-depth interview from Claire Enders , of Enders Analysis, on the future of the media:

Her company predicts that half the country’s 1,300 local newspapers will close between now and 2013, destroying 20,000 media jobs. There will be “a decline of original content across the board that will have enormous consequences for democracy”.

When the bookseller Waterstone’s asked for her advice on how to combat Amazon, Enders argued that it needn’t bother. Amazon, she suggested, was unstoppable. Today, she offers similar advice to newspaper bosses. “They should stop looking and investing in the next thing,” she says, “because they’re wasting their capital.”In particular, Enders is critical of newspaper companies – including the Guardian Media Group (which publishes this newspaper), News International and Trinity Mirror – that have collectively spent hundreds of millions replacing printing presses. “Being tied down to fixed-cost equipment and fixed-cost staffing in an era where they cannot predict sales is crazy,” she says. In Enders’s view, the FT and the Telegraph Media Group have acted wisely in outsourcing their print work.