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TUESDAY, FEBRUARY 9, 2010
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OFF THE GRID

Does Information Want to Be Paid For?

Apr 17, 09 | 8:54 AM   byMichael Wolff
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The old news media believes that all of the stuff it’s been giving away for free for a decade or more it ought now get the reader to shell out for. My friends Steve Brill and Gordon Crovitz (Gordon is on Newser’s advisory board), with long-time cable executive Leo Hindery, are starting something called Journalism Online (a terrible name), which hopes to be an iTunes-like store for, well, journalism.

Here’s a brief recap of how publishers originally came to give away their store: The early and fierce Internet mantra on the part of the digital elite was about information wanting to be free. Sharing was the Internet’s singular function. So from the get go, traditional publishers found themselves not only competing with free information, but also wanting to be cool digital guys themselves, and, as well, to get as many “hits” as possible—free, therefore, became everybody’s approach. This was okay until publishers figured out they couldn’t make in online advertising what they used to make in old-fashioned advertising and that the Internet was destroying their profitable businesses.

Hence, the big panic.

The proposition now is that there will be “official” content produced by “official” journalists that will be paid for, existing like an island amid the sea of Internet content, which will be free. The idea is that the former is so evidently more valuable than the latter consumers will line up with their credit cards.

This suggests a future world of bootlegged newspaper articles (presuming anybody in the coming years even wants newspaper articles), and, as well, a new competitive divide. Were MSNBC to put up a paid wall, that would be to CNN’s huge benefit. (The New York Times, presently a free site, makes about three times as much as the Wall Street Journal’s paid site.)

But the larger issue is about confronting people with real questions of value. What is a New York Times story worth on the open market? If you have to pay for it, do you begin to evaluate it differently? Is the Times really that special? If you have to pay for a Times article, do you then realize it doesn’t do the things you’d expect it to do—sheesh, that you still have to read it? (You want me to pay and then expect me to do the work?) Indeed, aren’t you asking people to pay for the old version of journalism, while the beta version, with lots of new features (including doing the reading for you), is free (even if it crashes sometimes)?


(AP Image)

Sure, there’s iTunes, which offers music customers technological ease (peer-to-peer networks still require a level of brain surgery) and freedom from prosecution. Still, iTunes sells a few million songs a month, versus billions of illegal downloads.

In other words, if somebody wants to pay, well, why not? But that’s not going to put your kid through college.

More of Newser founder Michael Wolff's articles and commentary can be found at VanityFair.com, where he writes a regular column. He can be emailed at michael@newser.com
23 comments
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Reader66958718
Apr 17, 09 10:14 AM CDT
Michael, Can I ask, what will sites like newser do if all of the newspapers fail? Where will newser get its content? Reply
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AS1280
Apr 17, 09 11:39 AM CDT
Reader, the whole point is that no matter how much informations newspapers put behind walls, there will always be good information for free. Just look at how influential the Huffington Post is, and it's a blog! Blogs and other sources run by the non-elite will always exist, and be cheaper than these so-called "esteemed" papers. Reply
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bacimom
Apr 20, 09 12:41 PM CDT
but who is doing the fact checking? Who is checking sources? Once something is published on the web people take it for gospel whether or not it's a joke, fraud or the real thing. Post "news" only via blog sites and you get only what they want to post, as well as spin and/or bias... and you get no local news.
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ews
Apr 17, 09 12:51 PM CDT
I've never understood the meme "information wants to be free". Does your credit card number, social security number & passport information want to be free? Information doesn't want anything. People want information. And like all our wants we're prone to get as much as we can for as little as can. Then this entire argument seems to dismiss 'traditional', 'esteemed' news sources as somehow irrelevant, or anachronistic. Really? As much as I enjoy the Huffington Post, 90% of it's content is editorializing and op-ed. Do we really need to compare the two? While dead-tree media is definitely going the way of the dodo, to write of the value of it's content seems to be throwing the baby out with the bathwater. Reply
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ahoving
Apr 17, 09 1:21 PM CDT
Has Bill seen PayCheckr.com Reply
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Reader67016329
Apr 17, 09 1:45 PM CDT
so sick of people telling me I get my news online for "free" - I pay hi-speed cable internet $90 month, thats $3 a day, why am I going to pay an extra $1-2 a day (practically double) to buy a couple of newspapers? Oh yeah my MacBook cost 4k, let alone the whole mobile iPhone category. If you get news online at work then your boss pays for it and it comes out of your pay in some way somehow. Reply
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vickj
Apr 17, 09 2:33 PM CDT
You *are* getting it free because you are not paying the people who work to gather the news that you don't pay them for. According to your logic, if you buy a house you should be able to go into any furniture store and take whatever you want. After all, you're making a couple thousand a month in payments. Or... 'I'm paying for a car - why should I have to pay for gas?'. You're paying the cable company for access to the Internet, not for using what's out there. And it's your choice to pay for it - you don't have to. So stop using your choice to pay $90/month and spend $4k on a computer and have an iPhone to rationalize not paying for other people's work...
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morenogabr
Apr 20, 09 8:41 AM CDT
but your paying for internet service, not the news. The news co doesnt recieve that money. Thats like saying I should get a newspaper for free because I paid for the gasoline to get to the store.
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vickj
Apr 17, 09 2:25 PM CDT
The problem is that the whole quote was never used - just the first part. So the context is entirely missing, making the mantra a deception. Here's the whole quote [from Wikipedia, which has sourced footnotes]: "Information Wants To Be Free. Information also wants to be expensive. ... That tension will not go away". This quote has been used to rationalize more BS than a heard of cattle... Reply
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Reader67037831
Apr 17, 09 3:28 PM CDT
I looked at Paycheckr and it left it up to the user and the content owner to decide. Huh? User Centric - what a concept??? Reply
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ahoving
Apr 19, 09 10:57 AM CDT
well, it's always ultimately up to the user to decide to pay at all. but if the user wants to support the site (and help keep it going) maybe letting the user decide HOW to pay would be helpful.
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reality
Apr 18, 09 12:09 AM CDT
I just want to know this: If I'm paying for it will they tell me what I want to hear? Reply
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Reader67245486
Apr 18, 09 6:54 AM CDT
LOL... And will they tell me if I liked what I heard?
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Bob_Dunn
Apr 18, 09 6:47 AM CDT
There is a vast repository of experts on an almost infinite number of topics, expert reporters and expert writers, publishing under their own names on the Internet. These people, tops in their respective fields, produce information and "content" that's just as good, or often better, than that produced by individuals still not laid off at the nation's newspapers. All newspapers are, are general-interest collections of individual reporters/writers. But are we not specialists rather than generalists? Yes, we are specialists. Certain specialties interest us. Others don't. We were stuck with general-interest publications, in which we conducted searches for bits of information relating to subjects in which we were interested. Then the Internet came along and we found we could more efficiently search through vast stores of information. The result? Now we human specialists can get more then our brains can hold about those topics in which we are interested. We have no further need of general-interest publications - although an individual here and there whose work we admire certainly remains worth reading. But if Brill or Business Week think they will get us to start paying for the privilege of the 12 minutes per week we might spend on any of their colleagues' publications, they will find otherwise very soon, to their considerable dismay. It's already been tried, and it already doesn't work. Heck, it doesn't even work for the Wall Street Journal. I know people with five-year-old unpaid "paid" subscriptions that still grant them access. Which means that the Journal finds it more valuable not to call them on it (and continues to charge its online advertisers as if its whole audience were by paid online subscription, which is to say, by charging higher rates). Meanwhile, newspapers by and large aren't getting the same value from their online advertising as from their print advertising because the big retail chains - their bread and butter for lo these many years - have been playing a game of chicken with them. Newspapers haven't been able to convert the big retail chains' ads to online. And publishers are too chicken to demand it. Except in Seattle, where they've no choice. (And then there's the recession, which doesn't help). On top of that, newspapers (and most other web publishers, and almost all ad agencies) have done a horrible job of helping advertisers figure out how to advertise on the web. Most web advertisements are HORRIBLE, and seem to serve mainly to drive away via annoyance the visitors whose eyeballs must be counted to set advertising rates in the first place. Now, how high do you think Brill et al will be able to set ad rates once they've driven off 75% or more of their readers by trying to make them pay for the privilege of showing up on their web sites? Reply
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AS1280
Apr 19, 09 11:18 AM CDT
Spot on, Bob.
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Stanley_Krute
Apr 18, 09 10:53 AM CDT
@ Bob_Dunn: great post. One suggestion: breakit up into paragraphs every few sentences. Most people will not read a huge unbroken block of text. Reply
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bacimom
Apr 20, 09 12:45 PM CDT
that's something else gone...Element's of Style, along with spelling, grammar, usage, oh yeah and local news, not opining.
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NaderPaulKucinichGravel
Apr 18, 09 10:51 PM CDT
Israel-first, dual-national, AIPAC paid, Hypocritical Bloodthirsty Government Propaganda does not sell well. Nor do all the lies. The "Government" has lost the trust of the PEOPLE... ~ nader paul kucinich gravel Reply
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Reader23334130
Apr 18, 09 10:55 PM CDT
God, Michael, you are the internet's biggest cracked record. On and on and on about the end of the New York Times. Methinks you do protest too much - it's almost as if you're getting revenge for some slight, perhaps they didn't give your Murdoch book a good review. Oh, they didn't. Look, from what I see of the responses to your blogs, almost everyone can see the big gaping hole in your argument about how "new" media will replace "old". Except you, apparently. Huffington Post is the future of journalism? Or blogs like yours? Oh dear, oh dear. Reply
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Bob_Dunn
Apr 19, 09 10:00 AM CDT
Sorry, Stanley, the comment section here apparently removes line breaks... Reply
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phil
Apr 20, 09 7:10 AM CDT
It is advertisers that have fallen in love with the internet, not people. Reply
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morenogabr
Apr 20, 09 8:46 AM CDT
actually im in love with the internet
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bacimom
Apr 20, 09 12:46 PM CDT
I hope you are very happy together, but can you wrap your fish in it? Reply
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OFF THE GRID is about why the news is the news. Here are the real motivations of both media and newsmakers. Here's the backstory. This is a look at the inner workings of desperate media, the inner life of the publicity crazed, and the true meaning of the news of the day.

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