1. Assessing the feasibility of charging for online content.

2. The Issue  The newspaper industry as a whole is struggling  Advancing with the times, most newspapers offer their content online for free  This has done little to help revenues  Now newspapers are considering charging for online content, as a way to offset revenue loss from lack of print sales  Our job is to consider the feasibility of The Tampa Journal charging for online content

3. The Tampa Journal  First published in 1863  Largest circulation in Tampa Bay area, although numbers are steadily declining  tampajournal.com launched in 1995  Since the launch of this website, subscriptions are down 8%

4. Recommendation  Utilize a hybrid method of charging for exclusive content, while keeping national/international, pro sports, AP news releases, obituaries, and weddings free  Suggested Pricing Option Home Delivery of Print EditionBetween $75-$100/yr Both Print and InternetApprox. $100 Internet Access onlyApprox. $110/yr

5. Agenda We will discuss:  Payment Methods  How the Albuquerque Journal, The Newport Daily News, the Arkansas Democrat-Gazette, and The Wall Street Journal charge for online content  Similarities/Differences between newspapers

6. Agenda (continued)  Financial comparisons  The limitations of our report  Last, why we recommend using the hybrid method of charging for online content

7. Payment Methods Free Online Content ProsCons Readers happy to avoid payment wall Advertisers potentially more willing to buy spots, knowing more people will see ads Potentially de-valuing columnists/journalists content Potential long-term revenue loss

8. Payment Methods cont. Hybrid: Free and Paid Content ProsCons Most commonly used; seen some success Readers will still be able to get some news for free Could put newspaper ahead of the curve Challenge to decide what to charge for Need to appeal to niche markets in order to create appeal May not work if there are multiple local papers with online content

9. Payment Methods cont. Tiered System: The More You Read, The More You Pay ProsCons Get articles most important for free Readers have more choice in what they are charged for Readers have more choice is how much they are charged Unable to charge for their exclusive content Loses control of their revenue intake from online content Readers may read just the few articles for free and never pay to read more

10. Payment Methods cont. Pay for All Online Content ProsCons Newspaper is giving nothing away for free Possible long-term increase in revenue if market leader and news can’t be found elsewhere Readers can find most information for free elsewhere on the Internet Angry readers and huge risk

11. Albuquerque Journal  Largest newspaper in New Mexico with circulation of 216,375. Implemented online payment strategy in 2001.  Payment Options: Website only $80/yr $12.75/mo. Electronic edition & website $110/yr $76.50/six mo. $38.25/three mo. Electronic edition, website, & home delivery of print edition $185/yr

12. Demographics Median Age: 35 Median HH Income: $38,272 Race: 70% white

13. Success or Failure?  Sales: -6%  Overall: Partial success. According to the newspaper: Success- sales would be worse if free online content. According to us: Partial-Although consistent numbers over the years, they’ve been consistently hovering at -6%

14. The Newport Daily News Published in Newport County, Rhode Island. Circulation of about 12,000. Began charging for online content in June 2009. Payment Options: Website only$345/yr $35/mo. Website & home delivery of print edition $100/yr $55/six mo. $30/three mo.

15. Demographics Median age: 37.4 Median HH Income: $50,000 Race:88% white

16. Success or Failure?  Since June, sales are +8%  Website traffic is -30%  Goal of online pay wall was to protect sales of print edition  Mission accomplished

17. Arkansas Democrat-Gazette Published in Little Rock, Arkansas. Daily circulation of 182,350. Began charging for online content in 2002. Payment Options: Website only$59/yr $5.95/mo Website & home delivery of print edition $180/yr $90/six mo. $45/three mo.

18. Demographics Median age: 35 Median HH Income: $37,572 Race:54% white

19. Success or Failure?  Began pay wall to protect sales of print edition  After pay wall, print sales only went up 1.7%  Small number, but consider what happened to similar newspapers that did NOT charge online

20. The Wall Street Journal  Largest circulation paper in the U.S. WSJ.com launched 1996.  Payment Options: Website only $103/yr $1.99/week Home delivery of print edition only $119/yr $2.29/week Both website & home delivery of print edition $140/yr $2.69/week

21. Demographics  Both print and online readers are mostly older, white males with college degrees who make well above $60,000.  Gender: Online: 63% male Print: 81% male  Age: Online: 35+ Print: 45+

22. Success or Failure?  Overall: Complete success.  One of the first papers to charge.  Everyone thought WSJ was crazy.  Sales risen.6% last year from $2.07 million to $2.08 million.

23. Similarities & Differences TampaAlbuquerqueLittle Rock Newport (R.I.) WSJ Age37.435 3845+ HH Income$44,079$38,272$37,572$50,000$60,000+ Population340,882448,607183,1331,076,000*N/A** % White51%60%54%88%80% % African American 26%2%41%4.4%5% % Hispanic19%35%3%3.4%4% Subscription Rate*** N/A$80/year$59/year$345/ year$103/year *population of all Rhode Island **WSJ is a nationally read newspaper ***Online edition only Demographics

24. Results  Albuquerque Journal: Paid daily circulation down 6%  The Newport Daily News: Single-copy sales up 8%  Arkansas Democrat-Gazette: Daily circulation up1.7% since 2002  The Wall Street Journal: Total average paid circulation up.6%

25. Financial Comparisons

26. Limitations  Limited number of newspapers that charge for online content. Few of those that charge for online content are comparable to the Tampa market.  Lack of financial information. Not much information on the papers is publically accessible. Information that is available is not always comparable.

27. Conclusion  Our company is for-profit  We are losing money right now  In the face of uncertainty, information can guide you to success  The information available is clear: charging for content online will protect sales of our print edition

28. Conclusion (cont.) Home Delivery of Print EditionBetween $75-$100/yr Both Print and InternetApprox. $100 Internet Access onlyApprox. $110/yr Start charging immediately How will we determine if it was a success? Prediction: daily website visitation will decrease 5% at most and daily print circulation will grow by at least 8% We’ll see you in 6 months!