Monthly Price of Economics Times Newspaper Text

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I am securing news paper through a local service provider in banjara hills, road no4 area, hyderabad 2. I notice that price quoted on et that states that cost of the paper is rs 4 along with times of india. This rate is superscribed on the paper i get which states that this price is applicable for home delivery in hyderabad along with times of india 4. The paper distributor collect rs 210 monthly for both papers as against rs 120 per month that is supposed to be charged as per the economic times top portion states.

This is nothing but a cheating not befitting to the stature of any news paper more so for a prestigious publication office like times of india group. In early july, rupert murdochs news corporation placed its two london based quality dailies, the times and sunday times, behind a paywall, charging £1 for 24 hours access, or £2 a week after an introductory £1 for the first month. At the same time, news corp also forbad the uks audit bureau of circulations from reporting site traffic. That situation has now been partially reversed, with news reporting some of its own numbers: they claim 105,0 total transactions for digital content between july and october. The number of users is smaller, as there can be more than one transaction per user. News corp notes that about half of those transactions were one offs, meaning only about 50,0 transactions in those four months were by people with any commitment to the site longer than a single day.

Because that 50k number includes not just web site transactions, but kindle and ipad sales as well, web subscribers are, at best, in the low tens of thousands. However, we dont know how small the digital subscriber number is, for two reasons. First, the better the kindle and ipad numbers are, the worse the web numbers are. Second, news did not report, for example, whether a loyal reader from july to october would count as a single transaction or several consecutive transactions. If ipad sales are good, and loyal users create multiple transactions, then monthly web subscribers could be under 10,0. The other figure news reported is that something like 100,0 print subscribers have requested web access. Combining digital only and print subscribers, and comparing them with comscores pre paywall estimate of roughly six million unique readers worldwide.

Note that this reduction cant be measured by before and after traffic, as the home pages are outside the paywall, so people who refuse to pay still show up as visitors. Because the print subscribers outnumber digital only users, most of the remaining 3% pay nothing for the site. Subscription to the paper is now a better draw for website use than any case news has been able to make for paid access.

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After the introductory £1 a month offer, the annualized rate rises from £12 to £104. This will cause additional users to bail out, but we have no way of guessing how many. As with every aspect of the times paywall, interpretation of these numbers varies widely. There are people arguing that these numbers are good news robert andrews at paidcontent sees hope in the times now having recurring user revenues. There are people arguing that they are bad news mike masnick at techdirt believes those revenues are unlikely to offset new customer acquition costs and the loss of advertising. What is remarkable though, what seems to need more explaining than newss strategy itself, is why anyone regards this particular paywall as news at all.

The paywall problem isnt particularly complex, either in economic or technological terms. General interest papers struggle to make paywalls work because its hard to raise prices in a commodity market. If you own the only cow for 50 miles, you can charge usurious rates, because no one can undercut you. If you own only one of a hundred such cows, though, then everyone can undercut you, so you cant charge such rates.

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In a competitive environment like that, milk becomes a commodity, something whose price is set by the market as a whole. Owning a newspaper used to be like owning the only cow, especially for regional papers. Even in urban markets, there was enough segmentationthe business paper, the tabloid, the alternative weeklyand high enough costs to keep competition at bay. Any given newspaper competes with a few other newspapers, but any newspaper website compete with all other websites. As nicholas carr pointed out during the 2009 pirate kidnapping, google news found 11,264 different sources for the story, all equally accessible. The web puts newspapers in competition with radio and tv stations, magazines, and new entrants, both professional and amateur. The potential disruptive effects of the internet on newspapers have been observable since clarinet in 1989.

The disadvantages are that they reduce readership, increase customer acquistion and retention costs, and eliminate ad revenue from user forwarded content. Its no different from other pay for access plans, whether the ny times timesselect or the harligen texas valley morning star. News corp has produced no innovation in content, delivery, or payment, and the idea of 90%+ loss of audience was already a rule of thumb over a decade ago. Over the last fifteen years, many newspaper people have assumed continuity with the analog business model, which is to say they assumed that readers could eventually be persuaded or forced pay for digital editions. This in turn suggested that the failure of any given paywall was no evidence of anything other than the need to try again. What is new about the times paywallwhat may in fact make it a watershedisnt strategy or implementation. Whats new is that it has launched as people in the news business are re thinking assumed continuity.