In the CCI 2010 Digital Futures survey, authors Scott Ewing and Julian Thomas report that 71% of respondents would not pay for online news and only 7% would pay the current $1.50 per edition.
You might quibble about the methodology, only 1000 respondents were surveyed and you might also point out that survey intentions don’t necessarily translate into outcomes but the result is still significant. Combined with the decline in TV watching especially marked in the 18-24 age group, the omens are not that great for traditional media players.
Interestingly Australian consumption of online entertainment (since by definition news is not entertainment…) remains fairly static since 2007. This might suggest different consumption models after all digital media is plentiful, relatively cheap and doesn’t necessarily have to be shared over the net. Borrowing friends CD’s or DVD’s or ripped versions are all significant alternatives to paying for them from an online service.
Probably the most significant result for online information and news is its rising credibility. Two thirds of respondents would seek information from the net in the case of a local breaking news story and 73% consider the net to be either an important or very important source of information.
I think the results highlight what is already known or guessed at. High quality media that involves significant creative input is still able to command a price although that is probably under pressure too. Daily consumerable media like news on the other hand is losing its monopoly position over the medium. Paradoxically people still want news but in a highly competitive medium where mind share is contested with other information and entertainment sources, people are less likely to financially rate their occasional news sources as highly as the dead tree versions that fill up the recycling bins.
It also highlights the difficulties startup or alternative news sources are going to have making a buck out of straight news. It suggests to me that the people making money out of providing the network services are in the box seat and possibly it is in their interests to look at funding news as some sort of public service. Then there are those that already have an interest in propagating a particular world view to a mass audience, they are likely to continue to do so using a cheaper delivery model with potentially less credible competition.
Maybe it’s not so bad for Rupert after all…
CCi Digital Futures 2010: The Internet in Australia | CCI.
