Tag Archives: matthew parris

Will The Times’s paywall work? It’s the question that’s been asked ever since Rupert Murdoch’s News International announced its intention to place The Times and The Sunday Times websites behind a paywall, blocking any user not prepared to pay a subscription for access.

Last week saw publication of early unofficial statistics which were extrapolated at length in The Guardian and suggest The Times’s website now attracts somewhere between 84,800 and 195,700 daily unique users – compared with c.1.2 million daily unique users pre-paywall.

It’s stating the obvious to point out that’s a huge drop: after all, the point of the exercise is to make money from the few, not be free to the masses. So far, it’s understood there are 15,000 paying users – though whether that figure includes those who signed up for cheap one-month trial offers is not certain – in addition to 12,500 iPad users.

Assuming The Times can retain all those paying customers (which is a big assumption), it’s estimated the paywall could attract revenues of £1-2m a year. I’ve not yet seen, though, a reliable figure showing what the cost in lost advertising revenue associated with a fall in online circulation will total – which make it difficult as yet to work out if News International will generate an immediate net profit from the paywall. That, after all, would be Mr Murdoch’s ultimate response to the naysayers.

What I don’t understand is why News International decided to go all out for the paywall at The Times without at least first testing the market by adopting a ‘freemium’ model, making basic content available free, but charging for premium content.