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Eric Schmidt says in general paid content plans don't work online

Print publications that run websites are fighting to convince their peers and readers that paying for content online is the only way to go. The problem is that a generation of internet users are used to getting content for free and getting them to pay for the content will be difficult if not impossible.

Publishing tycoon Rupert Murdoch has previously stated that his company will begin charging for access to the content on all of its websites. Currently the only publication that charges for content in Murdoch's empire is the Wall Street Journal.

Shortly after Murdoch made the decree that all of News Corps. websites would charge for access to content, Google CEO Eric Schmidt scoffed at the plan and said that newspapers don’t want to "piss off" readers. Schmidt has again scoffed at Murdoch's plan to charge for online content.

Schmidt told attendees at a meeting of a group of British broadcasting executives that it would be very hard to charge for content online because the same content is available free.

Reuters quotes Schmidt saying, "In general these models have not worked for general public consumption because there are enough free sources that the marginal value of paying is not justified based on the incremental value of quantity. So my guess is for niche and specialist markets ... it will be possible to do it but I think it is unlikely that you will be able to do it for all news."

Schmidt is basically saying that the Wall Street Journal being successful with charging for content online is the exception, not the rule.

Murdoch has still not rolled out his pay for content scheme to any of the other websites in his publishing empire; perhaps he knows deep down that wishing readers would pay and getting them to do so are two very different things.



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Paying for content...
By ksuWildcat on 9/18/2009 10:54:32 AM , Rating: 2
Paying for content might work for some things like "insider" reports on investing or sports, but it isn't going to work for traditional news which can come from any number of sources.




RE: Paying for content...
By kattanna on 9/18/2009 12:15:33 PM , Rating: 2
agreed. and most free "news" sites aren't even worth that much, IMO.


RE: Paying for content...
By Suntan on 9/18/2009 3:17:34 PM , Rating: 2
I would say it wouldn't really hold up for a lot of "specialized" niche areas either.

For anyone with a subscription to the WSJ, feel free to post an article, written at any time, and I bet someone can find an article that tells a similar story and was released close to the same time frame on a free website.

-Suntan


RE: Paying for content...
By Alexstarfire on 9/21/2009 2:18:55 AM , Rating: 2
I think for certain things you're not paying so much for the news, but for the credibility of the news. Doesn't do much good to find a financial "report" if someone just made up the numbers after all.


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