Rupert Murdoch &

the News Ltd Pay Wall

Group members•

BACKGROUND

• Who is Rupert Murdoch?

• What is Pay Wall?

What is PayWall?

•DEFINITION:

A website that restricts access to certain content only to paid subscribers.

THE DEBATE TIME

picture from:http://www.sgwritings.com/53969/viewspace_40666.html

OUTLINE•The background information

•The debate of Murdoch’s decision

• The long-term impact of his decision

• Conclusion

SUPPORTERS PERSPECTIVE

Readers should pay for access to stories

Pay-per-view mode

Benefits - readers, - shareholders, - newspaper industry

OPPONENT PERSPECTIVE•Readers should not pay for access to

stories

•Potential Risk: Losing $ Losing power Losing market

Rupert Murdoch &

the News Ltd Pay Wall

“…Readers must be forced to pay for access to stories…”

WEAK ENVIRONMENT

• Economic System Downturn

-- newspaper industry (print and online)

• Digital Technology Attack -- the Internet

• Advertising revenue -- 26% decline in

newspaper industry/ 30% decline in News Corp.

• A dead or dying medium -- 21st century of newspapers

Economic System Downturn

Digital Technology AttackA pay-per-view mode

“Quality journalism is not cheap and an industry that give away its content is simply cannibalizing its ability to produce good reporting…we intend to charge for all our news web sites… ” (Murdoch 2009)

PAY-PER-VIEW MODEL• Rupert Murdoch’s new approach -- better and differentiated contents/ a terrific experience

• A business model -- significant revenues

• The Wall Street Journal -- strengthening the relationship with loyal readers

PAY-PER-VIEW MODEL• The good impact:

• Readers

• Shareholders

• Newspaper Industry

What’s inside of the wall?

Rupert Murdoch and News Ltd PayWall

Picture from: http://highwired.co.uk/blog/tag/appe/

POTENTIAL RISKS• Charge — Losing click numbers—losing online

advertisement—losing money

• Charge — Losing click numbers—losing readership—losing power (political/other)

• Charge —Losing click numbers—losing readership—losing market

Characteristics of nowadays audience

• Younger generation—information on computer screen

• So many media choices—lack brand loyalty

• Creating& sharing—passively consuming

A business plan built on the verb “should”? Jeff

Jarvis, 2010

“It’s all about business model”• “There is no exist general business model to copy”

• Try to transpose old business model to new business reality can’t work

• We should find new ideas rather than force readers to pay

Clay Shirky, 2011

THE KEY POINT IN THE DEBATE • Quality journalism is attractive for

readers

picture from : http://www.dalianchuangye.com/2010/10/09/%E3%80%8A%E5%8D%8E%E5%B0%94%E8%A1%97%E6%97%A5%E6%8A%A5%E3%80%8B%E7%A7%91%E6%8A%80%E5%88%9B%E6%96%B0%E5%A5%96%E6%8F%AD%E6%99%93/

What happens in 2011for The Times

source:http://www.economicvoice.com/has-murdochs-flirtation-with-pay-per-view-newspaper-content-worked/50016260#axzz1Mx6ePG3f

THE LONG-TERM IMPACT• To change the publishing culture

picture from: http://www.watblog.com/2009/12/15/online-news-consumption-grows-by-37-in-india-comscore-study/

CONCLUSION

‘This is not the end of journalism’

From Crabb, A 2010, ‘The end of Journalism as we know’

Thank you !