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Computer industry

Technology Companies Offer Solutions to Help Publishers Charge for Online News

Strategic Insights

— 1 min read

As the newspaper industry struggles to make a profit from its online presence, major technology companies have stepped in to provide solutions for charging readers for news. The Newspaper Association of America (NAA) initiated a process to explore ways to seamlessly charge readers for online news, resulting in 11 proposals from technology companies. These proposals aim to address the complex issue of getting publishers to adopt a paid model, rather than relying on advertising revenue, which is dwindling.

Key Takeaways:

  • IBM, Microsoft, Oracle, and Google have responded to the NAA's request for proposals on ways to charge readers for online news, offering solutions to build the infrastructure for charging readers.
  • Google's proposal, in particular, is notable as the company plans to offer news organizations a version of its Google Checkout system, allowing readers to sign in and pay for media from various sources without having to re-enter their information.
  • Tiny startups, such as CircLabs, are also developing innovative solutions, including an application that would feed news from different sources into a bar across the top of Web browsers, offering targeted advertising and the option of charging.
  • The competition for Journalism Online, a startup led by Court TV founder Steven Brill and former Wall Street Journal publisher Gordon Crovitz, may be heating up, as new proposals are being submitted.
  • Despite the availability of tools, publishers are hesitant to charge readers due to concerns about scaring off online ad dollars.
  • Some publishers are exploring alternative options, such as charging a small fee per article or adopting a metered approach that would allow free access to a certain number of page views.

Statistics:

  • 11 proposals have been submitted to the NAA for solutions to help publishers charge readers for online news.
  • Google's proposal aims to provide news organizations with a version of its Google Checkout system.
  • CircLabs is developing an application with just a team of four people and has received seed money from The Associated Press.

Sources:

  • Newspaper Association of America (NAA)
  • Google Inc.
  • IBM Corp.
  • Microsoft Corp.
  • Oracle Corp.
  • CircLabs
  • Journalism Online
  • Alan Mutter (industry consultant and blogger)
  • Harvard University's Nieman Journalism Lab

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