Comments on: Journalism Online’s charging clients a 20% commission

By: How Steve Brill has adjusted his pay-for-news pitch » Nieman Journalism Lab

How Steve Brill has adjusted his pay-for-news pitch » Nieman Journalism Lab — Fri, 20 Nov 2009 20:01:03 +0000

[...] on at least some of its 1,200 affiliates pulling the trigger: Journalism Online is taking a 20% cut of subscription revenue. AKPC_IDS += [...]

By: Nico Flores

Nico Flores — Wed, 30 Sep 2009 13:05:41 +0000

Has anybody tried to follow the math? If you accept the assumptions, in year 2 you have 2.2 million online subscribers, each paying circa $75 pa. So you should get get around $150m revenue gross, or $116m after fees (a bit more if you follow the details).

However, in the published excerpt they predict $73.77m net revenue from online subs for year 2. That is, the prediction seems to be short by around 60%.

Thanks for any thoughts.

By: Innovar es hacer lo mismo, pero mejor. | La Empresa de los Contenidos Digitales

Mon, 21 Sep 2009 09:26:44 +0000

[...] de impresión de libros bajo demanda o la venta de artículos con micropagos (tal y como proponen JournalismOline o Google). Si una constante hay en todas estas fórmulas es que no estamos inventando nada [...]

By: Mike Mokrzycki

Mike Mokrzycki — Sat, 12 Sep 2009 15:22:37 +0000

A little late to this party, but … I really would like to see the empirical basis for these assumptions. In the Research and Data Analysis section the JournalismOnline document for NAA says only: “This has been discussed at length with NAA members and because it relates to pricing and other strategies we do not feel it appropriate to share it in this context.”

I suppose JO might feel it has no disclosure obligation to anyone but its potential customers but it could inspire broader confidence by divulging at least a basic outline of what research was conducted on consumer willingness to pay for online news. See the NY Times Co.’s Insight Lab for a model of far greater openness in this regard.

Without such disclosure the JO pitch is too easily dismissed as highly wishful thinking. Read the eight quotes at “Why Readers Will Pay For Online News” at http://www.journalismonline.com/quotes.php . Seven are about why publishers should charge for online news. One is an eloquent statement by David Corn on why readers *should* pay for online news. Nothing on that page addresses why readers supposedly *will* pay for online news.

By: The Home of the Not-So-Free « 78 Picas

The Home of the Not-So-Free « 78 Picas — Fri, 11 Sep 2009 18:04:45 +0000

[...] Several unnamed papers have signed with Journalism Online to help them come up with a plan to charge for content. (Also in the news, Journalism Online will be charging a 20 percent commission for new subscribers.) [...]

By: Journalism Online paid content venture to take 20 per cent commission | Journalism.co.uk Editors' Blog

Fri, 11 Sep 2009 08:29:04 +0000

[...] Nieman Journalism Lab reports that the company will take a 20 per cent cut of subscription revenue (after credit card fees). [...]

By: Tim Barrett

Tim Barrett — Fri, 11 Sep 2009 06:10:52 +0000

From what I know about this business, which isn’t much, the cost of putting a paper edition on the streets is about 50% of the operation.
Quit printing the damned paper!
There’s a whole new generation coming of age that wants nothing to do with newspapers and this business model is making a very naive assumption regarding future circulation numbers. The newspaper is going the way of the console stereo. Concentrate on the Internet and quit trying to do both.
Let the trees do what trees do. The planet and everyone on it will thank you.

By: Digital Paperboy « Barataria – the work of Erik Hare

Digital Paperboy « Barataria – the work of Erik Hare — Fri, 11 Sep 2009 02:23:30 +0000

[...] best information we have yet comes from the Neiman Journalism Lab, and the 12 page document is available. The model is still under development, so we can’t say [...]

By: Mike Donatello

Mike Donatello — Thu, 10 Sep 2009 22:39:49 +0000

Okay, guys, that was funny. Really was. Now show us the real plan.

Look at a few of the assumptions:

- 20MM online UV monthly?
- 30% higher CPM for pages viewed by subscribers?
- 90% subscription renewal rate at $75 a year?

As my grandpa said, you know what happens when you assume. Any publisher who swallows this pill deserves the ugly result.

By: ric

ric — Thu, 10 Sep 2009 20:30:25 +0000

This is absurd on many levels least of which are the profound changes in the way that consumers value news. When we needed to have someone filter our news so we would know what we were getting all these old media models made sense. But now when any Joe off the street can be a thought leader and often is and news is tractable in real time .. the models no longer work. You guys better start carving your niche or find another gig.

By: enhager

enhager — Thu, 10 Sep 2009 16:49:51 +0000

$75!!! What site now charges $75? And assuming that 10 percent of your online monthly uniques will subscribe (2 million for the first example) – that would double your print circulation (which is tied to your geographic location, unlike your web hits).

This model has no foundation in reality I know of.

By: Jeff Sonderman

Jeff Sonderman — Thu, 10 Sep 2009 16:37:14 +0000

I am highly skeptical that they could force 10% of uniques to subscribe while only losing 12% of traffic over two years.

I doubt they can support the likelihood of that.

By: Details on Journalism Online’s pay plan « InfoMash

Details on Journalism Online’s pay plan « InfoMash — Thu, 10 Sep 2009 15:19:12 +0000

[...] per month or $75 per year (earlier estimates were $50-60 per year). The details available at the Nieman Foundation’s blog are unclear, but I assume that the $.25 micropayment charge is for non-subscribers who want to [...]

By: Mike Orren

Mike Orren — Thu, 10 Sep 2009 14:42:03 +0000

“Micropayments per article of $0.25 with a total of 6 per subscriber per month.”

Yeah. Best of luck with that.

By: Doing the Math on Paid Newspaper Content - Media Decoder Blog - NYTimes.com

Doing the Math on Paid Newspaper Content - Media Decoder Blog - NYTimes.com — Thu, 10 Sep 2009 13:59:45 +0000

[...] Lab has been following the paid content story very closely and is reporting that the model for Journalism Online, the company formed by Steve Brill, Gordon Crovitz, and Leo Hindery, will make money by taking a 20 [...]