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Cablevision To Charge For Access To Newsday
Tries to buck the trend of free, ad-supported news content...
by Karl Bode Friday 27-Feb-2009 tags: business · cable · Cablevision
Apparently fearing the fate of newspapers such as the Rocky Mountain News, Cablevision has decided to buck the trend of free news content and start charging Newsday readers for online content. The cable provider purchased the paper last May for $650 million, and apparently wants to make the news content a value-addded service to their cable customers. Given the immense availability of free (and often superior) content the plan will likely raise more eyebrows than revenues. Cablevision's relationship with Newsday has had a rocky start, with some dispute over Newsday's editorializing on the New York Knicks, which Cablevision also owns.

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Anonymous
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1 edit

What??

People hate to register (for free) to get news! Pay for it? Don't think so.

Romney2012
Defeat Obama 2012-Chg we can believe in
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Re: What??

said by Anonymous:

People hate to register (for free) to get news! Pay for it? Don't think so.
Even if, like they claim, that the site will be more than just an electronic version of the newspaper, in today's world people just aren't going to pay for it. The best they can hope for is that people will still want the local news and will buy and subscribe to their paper editions instead.
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dadkins
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Re: What??

Too many better news sources - even local, that people with any Google(or Yahoo) skills can find.
Pay for this?

I think someone dropped $650mil into the dumpster.
--
Think outside the Fox... Opera

james

join:2001-02-26
CWCville USA
said by Romney2012:

in today's world people just aren't going to pay for it.
It's a good thing people become reporters to help society and do a service to mankind, rather than to become rich! Just like how musicians and authors are in it for the artistic expression and not to make money for the rest of their lives off of something that took them 10 minutes to think up.
Oh wait, both journalists and artists have become perverted corporate shadows of their former selves. Maybe they should get real jobs to help support their HOBBIES. You know, like the rest of us do.

Jafo232
You Can't Spell Democrat Without Rat.
Premium
join:2002-10-17
Boonville, NY

Re: What??

As I remember, the NYT tried this too.. It is funny though to see people who still think they are in the 20th century. They think that without their expensive printing presses and overpaid staff that the world will not be able to get any news. Clearly they have not logged on to the tube driven Internet lately..
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captnhook

join:2001-02-20
NY
LOL to call the reporters at Newsday "journalists" is a real stretch of the imagination.

Newsday has been in a state of decline for years doing a slow death spiral while morphing into a National Inquirer wannabe rag.

inferno

join:2008-07-06

Cablevision = RETARDS

Well.... I will just go to another website to read the news... Newsday isn't that great anyway, but why the hell would they want us paying to read the news while there are thousands of other websites to visit?

Know what site I like? Drudgereport.com

Jeffrey
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Re: Cablevision = RETARDS

A number of years ago when they made News 12 online only viewable to CV subscribers, I said "ok, whatever. don't need you, plenty of other free stuff out there." I haven't looked back. I'm even with CV service now, and I don't even watch News 12.

Newsday is good, but so is »news.google.com
bgraham

join:2001-03-15
Smithtown, NY

I Don't Think So.

I don't pay to read anything on line.

This is as dumb as our mortgage company who told me that if we use online bill paying it would cost $5.

kamm

join:2001-02-14
Brooklyn, NY

R.i.P. Newsday

Well, this is what happens when stupid, clueless beancounters and retarded, greedy cablecorps get into businesses they have zero clue about - the end result will be a dead Newsday, I'm telling you.

Mactron
el Camino Real
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Re: R.i.P. Newsday

This idea = Fail.

LMAO

kamm

join:2001-02-14
Brooklyn, NY

Re: R.i.P. Newsday

Excuse me...?

dadkins
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Re: R.i.P. Newsday

said by kamm:

Excuse me...?
Looks like he is agreeing with you...
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Jason Levine
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"Fail" is a meme that seems to be popular recently. It basically describes a stupid decision or action that fails in a spectacular way. »failblog.org/ has a bunch of photo examples.

AVD
Respice, Adspice, Prospice
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Re: R.i.P. Newsday

whats a meme?

jmn1207
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Ashburn, VA

Re: R.i.P. Newsday

said by AVD:

whats a meme?
A neologism. Does that help, or was that a fail?

tschmidt
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Newspaper Biz model and Net Neutrality

Newspapers are caught up in a difficult position. I don't have problem paying a subscription fee to paper I have a relationship with but am turned off by "pay as you read" or even having to register to read like NYT.

Not having to to use dead trees to deliver information dramatically reduces cost but unfortunately Internet ad rates are very low compared to print.

That issue aside does anyone have concerns about Cablevision's relationship with a newspaper? Do we really want first-mile gatekeepers to have business relationship with content providers?

/tom

BF69
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Camden, TN

Re: Newspaper Biz model and Net Neutrality

said by tschmidt:

Newspapers are caught up in a difficult position. I don't have problem paying a subscription fee to paper I have a relationship with but am turned off by "pay as you read" or even having to register to read like NYT.

Not having to to use dead trees to deliver information dramatically reduces cost but unfortunately Internet ad rates are very low compared to print.
the cost of putting an online paper compared to pirnitng say 1,000,000 copies is night and day. So the fact that they don't get as much per ad shoudn't make a difference. here's an idea make the paper version more scarce so more people go online then you can charge more for your online ads.

Like it or not the old ways are going away these industries better get with the program or they'll become extinct.

kind of like the oil companies spending years and billions of $ fighting alternative fuels instead of embracing them and becoming the LEADERS of developing them. Wait too long and you're a follower and not a leader if you exist at all.

james

join:2001-02-26
CWCville USA
said by tschmidt:

Not having to to use dead trees to deliver information dramatically reduces cost but unfortunately Internet ad rates are very low compared to print.
Uh, how about not having to own and run printing presses, how about not having to pay people to maintain those, how about not having to pay people to deliver the papers? What about the fact that an online newspaper has a worldwide audience, and thus more potential audience.

The cost to distribute things online is a fraction of a percent of the real world alternative, especially when you're talking about worldwide distribution.

tschmidt
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Re: Newspaper Biz model and Net Neutrality

said by james:

The cost to distribute things online is a fraction of a percent of the real world alternative,
True but one still needs reporter to cover the stories. I don't know enough about the newspaper biz to know how costs break out.

»www.economist.com/blogs/freeexch···mics.cfm

/tom

james

join:2001-02-26
CWCville USA

Re: Newspaper Biz model and Net Neutrality

said by tschmidt:

True but one still needs reporter to cover the stories.
The problem is that these days, almost every article I read is pulled from a wire service and nothing is actually contributed by the website I'm reading the article from, except for abit of spin or selective reporting. IE; I recall a Canadian newspaper was caught changing an AP report that said X civilians were killed in Gaza to X militants were killed in Gaza.

jmn1207
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Ashburn, VA
I don't really see much investigating going on. All of the advertisers pay for these news conglomerates, which are mostly divisions of a much larger media organization. If they want an exclusive story or interview, they have to follow certain rules and formats that will appease these advertisers or they risk losing all of their money. If you want an Obama interview, they give you a list of questions to ask, when to ask them, how to ask them, where the lights should be, where the cameras should point, who can be there when it takes place, and on and on.

That's entertainment, but it's no longer the news. Most of the real journalism is done by people that have distanced themselves from these quasi-corrupt news giants.

RARPSL

join:1999-12-08
Suffern, NY
said by james:

said by tschmidt:

Not having to to use dead trees to deliver information dramatically reduces cost but unfortunately Internet ad rates are very low compared to print.
Uh, how about not having to own and run printing presses, how about not having to pay people to maintain those, how about not having to pay people to deliver the papers? What about the fact that an online newspaper has a worldwide audience, and thus more potential audience.

The cost to distribute things online is a fraction of a percent of the real world alternative, especially when you're talking about worldwide distribution.
There is also the issue that the cost of the newspaper is in two parts - Fixed and Variable. The Fixed cost is everything to do with producing and distributing the paper (the items you mention). The Variable Cost, is that of creating a copy. Thus if you print 1,000,000 copies, the cost is F + 1,000,000 V. This figure includes those copies that you print/distribute but do not actually sell.

With online versions, the Fixed Cost is the cost of making up the HTML, uploading it, and running the Servers and connections. The Variable Cost is that involved with serving a copy (there is no cost for unserved copies).

Since the Online Fixed Cost is much less than the Paper Version's Fixed Cost and the Online Variable Cost is MUCH less than that of printing a copy (with only the needed copy count being for the Online Version with no unneeded copies being created and the cost per copy being minor) the Online Option is much cheaper. The problem is that unless you charge something for online access, the full burden must be carried by the Ads (unlike with the Paper/Online option where the Paper Copy cost subsidizes the Free Online access and the Archive of Old Articles pays for itself).

Transmaster
Don't Blame Me I Voted For Bill and Opus

join:2001-06-20
Cheyenne, WY

Oh this is hillarious

Charge for content you can't give away The model for on line news reporting is already there it is called the DrudgeReport. (»www.drudgereport.com/) The main street press has looked down their collective noses at Matt Drudge. But apparently whatever he is doing works look at the stats for his site. If you are person wishing to place an ad where it will be seen by the most people are you going to spend your money on the likes of the now defunct Rocky Mountain News with circulation of about 200,000 or The Drudge Report. With stats like you see below it's a no brainer

VISITS TO DRUDGE 2/27/09

024,270,501 IN PAST 24 HOURS
732,606,641 IN PAST 31 DAYS
7,661,247,588 IN PAST YEAR
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spewak
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Re: Oh this is hillarious

said by Transmaster:

The model for on line news reporting is already there it is called the DrudgeReport. (»www.drudgereport.com/)
NOT!
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kamm

join:2001-02-14
Brooklyn, NY

2 edits
said by Transmaster:

Charge for content you can't give away The model for on line news reporting is already there it is called the DrudgeReport. (»www.drudgereport.com/) The main street press has looked down their collective noses at Matt Drudge.
Because DR is nothing but a retarded, badlly written, right-wing lying factory with no design and shitty staff, producing lot of BS and flat-out lies.

I don't care about DR but let's not make it into an example, shall we?

But apparently whatever he is doing works look at the stats for his site. If you are person wishing to place an ad where it will be seen by the most people are you going to spend your money on the likes of the now defunct Rocky Mountain News with circulation of about 200,000 or The Drudge Report.
Well, DR had less hits than any bigger liberal or center outlets (HuffPo, Daily Kos etc) so indeed, it's a no brainer why it cannot make money anywhere close to them.

Generally speaking tho I fully agree with you, ad-supported free content is here and won't go anywhere soon - whoever locks it down will lose audience en masse immediately.

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said by bicker:

Waaaa waaaa waaaa. You just want what you want and don't care to factor in what is right or true. Your perspectives are un-American, and deserve far more ridicule than I'm prepared to pile on them.

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Re: Oh this is hillarious

said by kamm:

Because DR is nothing but a retarded, badlly written, right-wing lying factory with no design and shitty staff, producing lot of BS and flat-out lies.
Are you sure you aren't thinking of Fox News?

Transmaster
Don't Blame Me I Voted For Bill and Opus

join:2001-06-20
Cheyenne, WY
Kamm you have not looked at the content. The Drudge Report is a news Digest, Matt's staff scan the internet for news items to place on the site. There is very little that originates from Matt Drudges staff. There are links on the page to just about every English language newpaper and news service on the planet. The point is he is making money.
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I am quite sure now that often, very often, in matters concerning religion and politics a man's reasoning powers are not above the monkey's.
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james

join:2001-02-26
CWCville USA
said by Transmaster:

If you are person wishing to place an ad where it will be seen by the most people are you going to spend your money on the likes of the now defunct Rocky Mountain News with circulation of about 200,000 or The Drudge Report.
Here is the problem:
If I own a small store in a small town, advertising to a worldwide audience is a waste of money for the most part (depending upon what services I offer). What good is an ad for Joes Diner in Hicksville Alabama that 1 million people see, when only 2 of them live in your town. Compare that to an ad that only 100 people see, but all of them live in your town.

It's a good argument for targeted ads though, the type that can tell what city you live in.

jmn1207
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Re: Oh this is hillarious

Small store in a small town? Keep that to yourself or Walmart might hear you.

M A R S
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Long Island
What about a Diner in Hicksville, right here on Long Island.
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Transmaster
Don't Blame Me I Voted For Bill and Opus

join:2001-06-20
Cheyenne, WY
Oh for sure a small town business buying ad space on the Net would be a waste of money. If you have an internet store on the other hand.....

Money Grabber

@verizon.net

uh oh

Don't give Karl any ideas.
majortom1029

join:2006-10-19
Lindenhurst, NY
kudos:1

hmm

Actually i hope they do this. newsdays comments are full of out of town people bashing long islanders and spouting off things that are just plain untrue.

If this means only long islanders actually viewing the site and making newsday better i am all for it.

Where do you think all the long island news comes from?

NYR 56
Premium
join:2000-12-05
Smithtown, NY

Re: hmm

majortom is right. Although I'm not happy to see Newsday charge for their online version (I read it on my phone), they are the best news outlet for Long Island news. I'm not sure why everyone is saying all they do is copy the AP, they actually do a LOT of reporting on their own. It's definitely my favorite news outlet.

People who have never seen a Newsday paper need to stop assuming about it when they don't even live in the state. Quite frankly I'm not sure why you all even care.

james

join:2001-02-26
CWCville USA

The funny thing

The funny thing is that news these days seems to be 50% AP news, rehashed and re-worded, 40% taken from bloggers and other websites, and 10% fluff/local news.

Remember the days when news reporters actually did their own work? Nowadays they're just pompous plagiarists.
tmc8080

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Brooklyn, NY
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call them out on this one..

People for the most part DO NOT BUY a newspaper.. many newspapers are or going bankrupt as we speak. The news media in general have sold their souls to big corporate interest groups so at least 75% (most would argue more) of what you get is biased in favor of those interests.

Keep in mind very few of the jounalists who had a backbone back when there was more breathing room between the owners of media companies and their staff who still have their jobs today aren't doing the kind of news they used to do. And... that includes (sniff, sniff) Lou Dobbs of CNN....
Since when does he EVER have something critial to say about his OWN backyard as opposed to the world's politics? Quite rarely.. who wants to be on the unemployment line these days when it's so crowded.

Cablevision will have a hard time monetizing Newsday.. as it is, I thought they were using it for a nice tax writeoff.. sadly at some point it just won't be worth the load.. so expect some layoffs at the company real soon (q4 2009, or 2010). Why? Because when you don't sell that many papers (circulation) then you simply fold-- or you hire children to write stories for $10/hour with no benefits.
RadioDoc
58ef2c0
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Re: call them out on this one..

Indeed. If I remember right they've already written down the value of Newsday by 2/3, which resulted in $280 million of their Q4 loss.
bobny1

join:2004-09-10
Bronx, NY

Smart move!!

Now they can go to Congress and ask for money
iq100

join:2002-02-06
Cold Spring Harbor, NY

Re: Smart move!!

said by bobny1:

Now they can go to Congress and ask for money
They may be smarter than we think:
The government is running out of paper to print.
Maybe this is about selling paper to the government?
Also, the government has run out of ink, and Newsday has a lot of unused ink.
Also Cablevision, in order to compete with Verizon, needs a fiber supply.
Any company that can arrange stringing wires across our backyards, and public lands, and not pay fair value for such lease rights cannot be that dumb.

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