ACMA: ABC and BBC may hamper Murdoch’s paid content model
A new report from the government’s ‘s media industry watchdog is sceptical about whether newspaper owners will be able to make similar profits online in the face of competition from non-commercial news providers such as the ABC and BBC.
The report from the Australian Communications and Media Authority – Changing business models in the Australian communications and media sectors: Challenges and response strategies – highlights the decline of newspaper readership.
Although it flags up the commercial possibilities of paid news applications such as iPad apps, ACMA questions whether consumers are willing to pay. It said: “In 2010, Rupert Murdoch announced that the introduction of the Apple iPad would also assist in the pay-per-view model, saying it was a device that would assist in the development of pay walls. Commentators have also highlighted that the strength of an application-only based news distribution model is that it will potentially enable greater control of the publication and distribution of news and other content.”
But the ACMA report goes on to say:
“The future success of any user pays strategy for online news content is heavily dependent on consumers’ willingness to pay for online news formerly accessed for free and mass adoption of these services. However, on the basis of available evidence relating to Australia, the majority of adult internet users have not demonstrated a willingness to date to pay to access news online.
“While this may change if free online news content is restricted, the likelihood of such a development occurring needs to be considered in the context of major global news players, such as the BBC’s global news service and domestic national and regional news providers such as the ABC within Australia, remaining committed to the provision of free access to online news services and the expansion of those services to take into account emerging digital platforms and consumer devices.”
The report also points to the decline of readership of newspapers and rise of the use of the web as a source of news by those who are online:
Source: Roy Morgan/ ACMA
And it also highlights the multiple sources of online news content including overseas-based sites such as the BBC.
Source: ACMA/ Nielsen online. Data for June 2010
Those who argue that the issue of paid content should be treated with an open mind, point out that what people answer in a survey about their intentions would not necessarily be replicated once a product has been launched and marketed.
A spokesman for Murdoch’s News Ltd told Mumbrella: “Our research suggests that if we deliver relevant content in a time and manner that is convenient to people’s lifestyles, then they will be willing to pay. The fact that many thousands of people are subscribing to our newspaper iPad apps, when all the content – and more – is currently available for free on the same device, supports this view.”
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large.
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Went to place an “in memorium” notice in our local Murdoch the other day – the only paper in town.
The cost was 80% up on last year.
Yes. It is in Australia’s best interests that Rupert continues turning the profits due to him as a virtual monopoly.
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>”the majority of adult internet users have not demonstrated a willingness to date to pay to access news online.”
And that is quite apart from the fact whether they would be prepared to pay to access Murdoch-created news online.
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The Australian is certainly not the only newspaper that offers subscriptions to its online service, I can think of several Australian trade newspapers that have adapted/developed rather successful user pay models for online content in conjunction with their traditional print newspaper distribution.
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And by Australian I mean The Australian Financial Review 😛
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The day Murdoch paywalls his australian publications, the sooner the better.
The Australian, haven’t read such self interest trite.The Daily Terrorgraph, says it all really.
Bring it on, you Dirty Digger.
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The problem with the News Limited is that offers absolutely nothing unique in the online space. Each of the ‘mastheads’ are nothing more than ABC content + gossip sites + a smattering of right wing nonsense e.g. Andrew Bolt.
And when push comes to shove users WILL find alternatives if they have to pay for it.
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May hamper?
I used to read The Times in London – I deleted it from my favourites the day it went paid because it wasn’t THAT good.
I don’t understand why News did a separate site for The Sunday Times – I never visited it.
The BBC’s site, iPhone and iPad app is free, really good, and gives me all I need about UK news.
Unless Murdoch can pursuade the UK government to force the BBC to charge for content (unlikely as everyone already pays a licence fee) then his UK paywalls are unlikely to make much profit.
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I wish the ABC would clean up its act. It’s getting difficult to tell the difference between it and the biased, trashy commercial media. Whatever happened the ABC Charter requiring it to provide a quality, politically-neutral alternative to the commercials? Did the Howard-stacked Board throw it in the incinerator?
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