It will go down to competition, some smart editor will run free "e" news paper and the other ones will perish as no one will subscribe!

But how will I light my light my BBQ?

Oh the horror!

Gizmo said...

I cant believe the news stories coming out that newspapers (or whatever new form it takes)will have to be subscription based to cover costs.... isn't that what advertising does?

Shhh - it's called double dipping and works well only if sheeple don't notice that's what you are doing.

its hilarious that any company thinks people will "subscribe" and pay for a newspaper. i already think the $2.75 i pay to have my sunday paper delivered is too much and the poor bloke throwing it to me is prob paying more than that in fuel to get it here.... most of it is crap in there anyway.

The problem is this:

News content is available free by many channels - TV, Radio and of course the internet. This is having a negative impact on newspaper sales - why buy a paper for a couple of bucks when you can read all the news at your desk or on your phone (on the train) for free. The internet has changed the way we consume media, particularly with the advent of the smart phone - and even more so for Generation Y - my 18yo daughter has never read a newspaper, let alone purchased one!

Newspaper sales = readership. Readership = advertising rates. Advertising rates = profitability.

The cost base of newspaper production is huge - the cover price does not go anywhere near covering the cost of production and distribution.

The cost base for digital media is still high, but a fraction of the cost of newspapers. The problem is the advertising model for most news sites is not particularly profitable.

Media companies are hoping that consumers are willing to pay a nominal subscription fee to access premium content - thus providing another revenue stream in addition to advertising.

Gizmo said...

GPA said...



Newspaper sales = readership. Readership = advertising rates. Advertising rates = profitability.

So Radio and TV don't sell any tangible items how do they determine their advertising rates.... Why wouldn't the same way work for Internet based outlets?
Or is it newspaper people are so fixated on a physical thing?

Give the forests half a chance. Stop buying newspapers and magazines.

busterwa said...

Think she should purchase some tv stations as-well. I cant wait to be a "waveslave" and watch laura bingle and flip burgers.

Busta, I didnt need to see that video to remind me of my old job!

GPA said...

Gizmo said...

GPA said...



Newspaper sales = readership. Readership = advertising rates. Advertising rates = profitability.

So Radio and TV don't sell any tangible items how do they determine their advertising rates.... Why wouldn't the same way work for Internet based outlets?
Or is it newspaper people are so fixated on a physical thing?

Market surveys determining listener/viewer numbers... ie which (radio/TV) shows on which channel are most popular. The most popular shows eg The Voice can command a higher advertising rate per 30sec ad slot. It's all about the number of eyeballs (and ears for radio) in front of the adverts...

The internet based media sites do operate on a similar model - advertising rates are determined by Unique Browser and Page Impression stats that show how many 'eyeballs' view and click through each ad banner...

I.e. the viewers are the media's product, not the shows or articles. They sell viewers to advertisers. Same thing at supermarkets. Not many people actually know this. Just sayin'.

P.S. ABC anyone? Best and free. And to counter some other thread abuot government inefficiencies and that they should be run like a business the ABC and all its local radio stations, web sites, tv shows, a true plethora, is all run on a fraction of a single commercial station.