The Hearst Corporation announced it was going to charge for its digital content. They publish 16 newspapers which include the Seattle Post-Intelligencer and the Houston Chronicle.
This will certainly kill the PI off for good which is already struggling.
I really don’t need to repeat myself on why I think this won’t work. Ready my prior post “Stop the madness, now” if you want get the details.
2009 projections for online revenue are grim. Most forecasters are saying only an 8-9% increase in online sales, which is drastically different than the 40-50% increases the past couple of years, which are still really low and cannot support most newsrooms. Especially large metros with unions.
The really sad part here is Hearst’s online business is going to drop like a lead balloon. Readers are going to get their news elsewhere. An easy thing to do in large markets. Sure, the PI and the Chronicle will say they have “unique” news, but the average reader won’t care about that. They will settle for the same story with a not so unique twist at the local free web site your TV station is doing (they are really the sleeping giants if you ask me).
I do applaud Hearst for looking into e-readers like Kindle. I really think in the next couple of years e-readers will replace home delivery. This would be a huge cost savings to newspapers. Just running the presses can be as much as 70% of a newspaper’s operating costs. Newprint alone is over $700/ton. Think about the additional savings in transportation costs as well.
If you are reading this and you do not work at a newspaper tell me what you think. Would you pay for online access to you local newspaper?