Paid content: Real scarcity versus artificial scarcity

Mathew Ingram at the Nieman Journalism Lab has an excellent post looking at the issues of paid content in general and micro-payments in particular. It’s a really useful post because he rounds up quite a number of posts and points of view on the subject. One thing really leapt out at me. Mathew writes:

Does that mean newspapers can’t make any money? Not at all. I think Mike Masnick has done a great job of pointing out how a media business can make money even if it gives content away for free — his company Techdirt does it, plenty of musicians and artists do it. And they do it by using the free content to promote the aspects of their business that have *real* scarcity rather than artificial scarcity.

After the Great Recession, news organisations are all seeking news sources of revenue and a more diversified revenue base so that we’re not as dependent on one highly recession-sensitive revenue stream, advertising.

As we look for new revenue streams, journalists need to get real about what adds value and need to be brutally honest about real scarcity. Currently, too much of the paid content discussion is obsessing over the societal value of journalism and not about rebuilding a revenue bundle that supports the socially valuable work that we do. Non-niche news has always been subsidised by other content and revenue streams. It is not dirty and it doesn’t devalue the social mission of journalism to think in terms of what other services and products we will need to develop to support that social mission. I’m more than happy for lifestyle news and food blogs to pay for investigations and bread-and-butter daily journalism. In many ways, it’s the simple recognition that our audiences are interested in many things, not just hard news.

Last week, speaking at the Norwegian Online News Association annual meeting, one of the points made by my fellow panelists was that news organisations have created a lot of innovative editorial projects but not many innovative commercial products. There are a lot of opportunities for news organisations to develop niche news and information products, but we best move quickly. Niche sites and services have already set up a dominant presence in many key content verticals. We also best move quickly on developing mobile apps, desktop apps and other tools to distribute our content and allow for easy recommendation. Steve Outing, for one, sees a lot of possibilities in mobile news and information services. What possibilities do you see to help pay for the social mission of journalism?

links for 2009-09-22

  • Kevin: "Blogs are often criticized for helping to kill print media. Last week, though, the prominent political blogger Andrew Sullivan used his forum on to tell readers to subscribe to the print edition of the magazine. … It worked. Within two days after last Monday’s post, Mr. Sullivan’s appeal pulled in 75 percent of the subscriptions that the Web site draws in a typical month, the magazine’s publisher, Jay Lauf, said."