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Newsday: It Was Never About Getting Paying Customers
So, well, why make people pay?
by Karl Bode Monday 01-Feb-2010 tags: business · alternatives · cable · content
Last week we noted how Cablevision's decision to pay $600 million for Newsday, then put the paper's website behind a paywall, resulted in a grand total of 35 paying subscribers. While Cablevision uses free access to Cablevision TV/broadband and physical Newsday subscribers as an added bonus, it's still a painfully low number. Techdirt directs our attention to a missive to staff members by Newsday executive Tad Smith, who complains the media isn't being fair and that putting up the paywall wasn't about paying customers:

The way to measure success for newsday.com is not, therefore, to count how many people sign up to pay $260 per year for access to the website. Our objective instead is to grow our target audience's utilization of newsday.com's great content and tools. . . Newsday's web strategy has two parts: 1) to provide Newsday's print subscribers with a rich web experience that goes far beyond what they can get in the newspaper alone, thereby motivating them to remain, return, or choose to subscribe to Newsday; and 2) to provide Cablevision's high-speed Internet customers with reasons to remain with Cablevision, reasons to return to Cablevision, or reasons to choose Cablevision.

Smith complains that the media largely ignored this, but all of the pieces we read clearly spelled out the broader strategy. The problem is, by any metric, Newsday spent $4 million on a site redesign and their viewers are dropping significantly. If there's no interest in actually getting unique paying customers, why put up a paywall? Why not just offer Newsday free solely to Cablevision customers? Meanwhile the "extra value" argument only goes so far. Does anybody really think a customer considering Verizon FiOS stays their hand because of an interest in free access to the Newsday portal?

Perhaps, just perhaps, paywalls just aren't a very good idea, especially if the content you're locking down isn't really all that compelling.

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luckylar

join:2002-01-29
Hixson, TN

BS

Let's face it, it seems these higher-ups acually seem to believe the BS coming from their lips.

r81984
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Re: BS

If everyone in that area that wants to read the paper already buys the physical paper or has cable tv then there really is no one left to go after. 35 people is impressive for a local paper when you already give so much free access.
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whizkid3
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Dolans = Bufoons

Another stupid move by Cablevision. (The only good move they ever had was buying up all the local cable TV companies on Long Island.)

Interestingly enough, if you count Sunday papers at $2 each, and daily at 50 cents, you are saving a whole 50 cents per year by subscribing at $260. On the other hand, Newsday is losing all their on-line add revenue ($$$MILIONS$$$), and just sending their viewers to other on-line newspapers.

Gbcue
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Re: Dolans = Bufoons

said by whizkid3:

Another stupid move by Cablevision. (The only good move they ever had was buying up all the local cable TV companies on Long Island.)

Interestingly enough, if you count Sunday papers at $2 each, and daily at 50 cents, you are saving a whole 50 cents per year by subscribing at $260.
I'm also sure it's considerably less if you have a subscription.
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Camelot One
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Value of your free service....

Thats what it's all about. Now they (Comcast and who ever else strikes a deal to offer it for free to their customers) can say... "Hey look, we are giving you this $260 per year service completely free!"

Otherwise it's as meaningless as BB&T offering me "free" use of Turbotax Online Free as a "reward for being our customer".
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patcat88

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Re: Value of your free service....

said by Camelot One:

Thats what it's all about. Now they (Comcast and who ever else strikes a deal to offer it for free to their customers) can say... "Hey look, we are giving you this $260 per year service completely free!"
Thats a part of it.

Same reason Verizon locked its wifi hotspots to VZ dsl users only (before they were shut down in favor of wifi).

Same reason for DTV's NFL.

Same reason for CV's OOL Wifi and ATT's free wifi with premium DSL tiers.

Same reason as TW and CV's NY1/News12.

Its called "value added" products. Think of it as the "BUT WAIT! theres more!" part of an infomercial.

Nothing wrong with bundling products, but it is a path towards horizontal integration and a monopoly if the government isn't careful.

ThrowDemsOut
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Newsday has way too many free competitors

All the news that Newsday can offer is available at 50000 more web sites because all newspapers today offer nothing but repackaged AP & Reuters stories for 90% of their content. Paywalls won't work unless the majority of sites institute them or AP & Reuters institutes online paywalls.
majortom1029

join:2006-10-19
Lindenhurst, NY
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Re: Newsday has way too many free competitors

But the problem is tht newsday is a local paper and very few sites report on long island events. Also with the ap and reuters starting to charge and lock people out it wont make a difference.
UofMiamiGrad
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Great Neck, NY

Re: Newsday has way too many free competitors

said by majortom1029:

But the problem is tht newsday is a local paper and very few sites report on long island events. Also with the ap and reuters starting to charge and lock people out it wont make a difference.
Least you have the Long Island Press:

»www.longislandpress.com/

AVD
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said by ThrowDemsOut:

All the news that Newsday can offer is available at 50000 more web sites because all newspapers today offer nothing but repackaged AP & Reuters stories for 90% of their content. Paywalls won't work unless the majority of sites institute them or AP & Reuters institutes online paywalls.
Newsday has lots of local content for Ling Island... its almost a niche market.
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bigpapae35

join:2002-10-25
united state
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dolans are fools

how come everything the dolans touch turn to shit?

knicks?
cable service?
now newsday.

I have never seen so much greed.

people have hundreds of other websites to goto for news.

fifty nine

join:2002-09-25
Sussex, NJ
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Re: dolans are fools

said by bigpapae35:

how come everything the dolans touch turn to shit?

knicks?
cable service?
now newsday.

I have never seen so much greed.

people have hundreds of other websites to goto for news.
Wait a minute... before FiOS rolled out, I thought everybody and their brother here was drooling over OOL?

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Re: dolans are fools

said by fifty nine:

said by bigpapae35:

how come everything the dolans touch turn to shit?

knicks?
cable service?
now newsday.

I have never seen so much greed.

people have hundreds of other websites to goto for news.
Wait a minute... before FiOS rolled out, I thought everybody and their brother here was drooling over OOL?
That was when they were the only game in town except for DSL and dialup.
I actually dropped OOL BEFORE Fios came here and got a DSL line from Verizon and IT was faster than the oversubscribed, node saturated OOL that I had.
patcat88

join:2002-04-05
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Re: dolans are fools

Before FIOS came, OOL was 10/1, compare to TWC's 5/384. 1 mbitps upload was a dream. Plus, unlike some cable companies CV rolled out their OOL upgrades to all of their territory, even areas that will NEVER get FIOS, such as ATT Connecticut.

NY Tel
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Re: dolans are fools

said by patcat88:

Before FIOS came, OOL was 10/1, compare to TWC's 5/384. 1 mbitps upload was a dream. Plus, unlike some cable companies CV rolled out their OOL upgrades to all of their territory, even areas that will NEVER get FIOS, such as ATT Connecticut.
What I observed was that for general web surfing, my 3.0 X 768 DSL was way more responsive than my 10 X 1 OOL back in 2006 which was my reason for switching and I did the DSL naked so I went from 44.95 a month (at the time) to 29.99 with Verizon. Was just a personal observation and preference.

fifty nine

join:2002-09-25
Sussex, NJ
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5/384??? My TWC was 1.5/256!

5Mbit only came afterwards, and shortly before I left TWC territory.

LIloyalist

@optonline.net

website horror

The Newsday website is a navigation horror. When you contact them about it - they don't want to listen to the problems you are having and just send you pre-written propaganda. Just forgetting the lackluster content and horrific editing and lack of basic spell checking, just trying to bring up an article or topic is a time consuming job that I have gone to other sources for that offer easier access.

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laugh of the day

said by news article :
Last week we noted how Cablevision's decision to pay $600 million for Newsday, then put the paper's website behind a paywall, resulted in a grand total of 35 paying subscribers.
No matter how many times I read that, I laugh. You can probably get 35 paying customers to watch dust accumulate.
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wwdubbia

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kudos

Kudos to the web development firm who scored this deal.
PX Eliezer
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What a shame

It is really unfortunate because Newsday was a fine newspaper for 50 years.

Newsday was founded by Alicia Patterson, daughter of the founder of the NY Daily News.

With each successive change in corporate ownership, Newsday suffered, and the Dolans are the worst.

----------------------------

Long Island suffers from this, because Newsday covers/covered local news that is totally ignored by New York City TV and radio stations.

Nassau and Suffolk counties have almost 3 million people, yet no major TV station of their own.....
patcat88

join:2002-04-05
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Re: What a shame

said by PX Eliezer:

----------------------------

Long Island suffers from this, because Newsday covers/covered local news that is totally ignored by New York City TV and radio stations.

Nassau and Suffolk counties have almost 3 million people, yet no major TV station of their own.....
Channel 55 ?

EricGT

@optonline.net

Re: What a shame

said by patcat88:

Channel 55 ?
When I tune to channel 55, I get MTV2.

I don't think this is a LI TV station.

JaM4150
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Re: What a shame

OTA channel 55 a.ka. WLNY.Probably channel 10 on the CV system.
PX Eliezer
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said by patcat88:

said by PX Eliezer:

----------------------------

Nassau and Suffolk counties have almost 3 million people, yet no major TV station of their own.....
Channel 55 ?

I said major station.

That station looks like junk food and in any event is not a major network affiliate. And they only seem to have a half hour of news per 24 hours.
NyNexit

join:2009-11-01
Huntington, NY

Re: What a shame

yeah lets not forget those re-runs of Matlock and Columbo oh and last years run of wheel of fortune and Oprah. That station is a joke.

bent
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Adapt or perish

The first issue here and with every other print paper in the world is that they are used to being able to charge subscribers for the privilege of seeing ads. The internet destroys that model and the papers unwilling to adapt to the new reality will perish.

The second issue is a lack of compelling content. I use Google News as a sort of newsstand. I peruse the headlines and if something catches my attention, I click. If all your newssite is doing is regurgitating Reuters and AP content, you probably aren't going to get the chance to show me an ad. Bring back actual journalism and you might get some clicks.
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