Pew Report: Even News Junkies Won’t Pay for Online Content
A new Pew study on the economics of news does not give comfort to news sites planning pay schemes. It also does not give me comfort that we’re wasting precious time futzing over walls when we should be paying attention to the big problems we have – one of which this Pew study points out: dreadful engagement and loyalty – and should be looking at other ways to give and gain value in our relationships with the public. The Pew data:
Over all, the evidence suggests the outlook is difficult both for paywalls and for online display advertising. While most people have not been asked to pay for content, even among the most avid news consumers online, only about one in five at this point say they would be willing to pay, and this does not include less voracious news consumers. At the same time, the vast majority of those online, 8 out of 10, say they basically ignore online ads.
In short, a good deal must change, the data suggests, before the digital age will begin to sustain itself.
About 71% of internet users, or 53% of all American adults, get news online today, a number that has held relatively steady in recent years.
Most of these online news consumers graze across multiple sites without having a primary one that they rely on. Only 35% of online news consumers have a favorite site.
To put it another way, 65% of online news consumers do not have a site that is so important to them that it stands out in their minds above all other sites they visit.
The users who do have a favorite site are pretty faithful. Some 65% of them check in with that favorite site at least once a day.
Yet even among these most loyal news consumers, only a minority (19%) said they would be willing to pay for news online, including those who already do so and those who would be willing to if asked.
Instead, a large majority – 82% – of those with a favorite site said they would find somewhere else to get the news.
Because so few online news consumers even have a favorite site this translates to only 7% of all people who get news online having a favorite online news source that they say they would pay for.
This is a sign of just how much initial difficulty the movement toward pay walls could have.
In sum, there appears to be only a very small cohort of voracious news consumers who have to have their news from a particular site, even if they have to pay for it. The vast majority of online news consumers, though, seem willing to browse for news from many sites, do not have a favorite online news source, and even if they do, are not willing to pay for that site’s content.
This is not to say that resistance might breakdown over time. . . .
All these findings speak to the natural disadvantage of news content: Most news is covered by more than one organization and people do not place enough value on the difference between the various reports. In other words, if a user had to pay for a New York Times article on Haiti, evidence suggests that he or she would just look for another source that could provide the basic information. The nuances of depth or breadth in the pay story may not be valued enough to induce payment over a free alternative.
Thus, if the news industry is going to make headway with pay-walls, they are going to have to break through what for now appears to be continuing reluctance, even among its most avid consumers.
First posted here at Buzzmachine.com
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