The Wire’s David Simon: Newspapers must charge for web content

Valerie | 04 Aug 2009, 13:08


(Getty Images)

Recent calls by the creator of The Wire, David Simon for newspapers to consider charging for access to content to rescue what he as previously described as an “imploding industry” are a timely reminder of the unprecedented challenges facing the newspaper industry.

The Guardian Group has this week warned that a closure of the world’s oldest Sunday newspaper was being actively considered as a solution to turn around heavy losses from falling advertising revenues, whilst last week’s results issued by FT publishing paint a similarly bleak picture, with reports that profits fell 40 percent in the first half of the year.  So could charging for content be the answer to reversing their fortunes?

Speaking to the Independent, Simon acknowledges the inevitability of charging for content and argues that the future of journalism depends on its providers building pay walls and charging a small price for online subscriptions.

His views have invoked the wrath of new media evangelists, who believe free content is the essence of the internet. To critics however who argue “you don’t understand the internet”, he counters: “you don’t understand journalism” and poses the question: “Are newspapers weaker or stronger for having given it away for free?”

Looking at the FT results and despite first appearances as this blog observes, the FT actually turned a profit which “in the current circumstances, with virtually all serious newspapers in Britain and the States losing money, is a remarkable performance.” The fact that digital income now accounts for 20 percent of its revenues, increasing from 14% in 2007 goes some way towards validating the virtues of paid-for content.

With a recent study confirming that consumers are now spending more time with paid content, including subscription based websites, e-books and video games, than they do with ad-supported media, such as newspapers and magazines – the time is ripe for newspapers to make the leap of faith and secure the industry’s survival in the digital age.