Media groups struggle to earn from their online businesses
Media groups, especially those who publish newspapers, see the Internet as a double-edged sword. They have done so for quite some time now. On one hand, the Internet has allowed newspapers to expand their reach, and has emphasized the “current” in newspapers’ being purveyors of current events.
On the other hand, newspapers’ online editions have made their content available to readers with access to the Internet, at all times. Readers, including those who were previously willing to pay for their copies of the newspapers’ hardcopy editions, now find they could cut their news-related expenses by relying solely on online reports instead.
Trouble is, while readers have found out that by merely clicking on newspapers’ Web sites, newspaper publishers’ decision to offer their content to the global news-consuming public for free has greatly damaged their bottomlines. Publishers’ initial hope that their online versions would encourage more readers to buy their hardcopy newspapers was not profitably accurate.
Publishers’ belated efforts to generate additional revenue from their online operations have proved futile so far. They have dreamed and wished that their forays into online advertising would bring in money to replace those they have lost from their offline sales and advertising. It did not turn out that way.
No Longer Free Online
The New York Times and Wall Street Journal newspapers have announced their plans to start charging for their online editions. Publisher The Times announced it would require online readers to pay for full access to NYTimes.com starting in early 2011. For its part, News Corp., which already charges for the online edition of the Wall Street Journal, plans to begin charging online readers for accessing its other newspapers.
The question, however, remains whether online readers, who have been accustomed to getting their news for free, would be willing to pay for online content. In other words, consumers have been so used to (and are feeling entitled to) free online news. Would they now pay for online news? Or would they just go somewhere else where content remains available for free?
Buying Without Seeing
Loyal fans of Apple went online on March 12 to be among the first to order iPad tablet computers before its official shipping in the U.S. on April 3. The other IT manufacturers must be wishing they had followers who are as loyal as those of Apple. Imagine, these pro-Mac consumers are buying a tablet computer that they have not seen yet.
They are acting out of their love for Mac products and complete trust in the words of Steve Jobs and company.
Crazy. But that just shows the extent of Apple’s marketing success, and the strength of its position in the market.







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