US newspaper group moves toward 'paywalls'

July 27, 2012
McClatchy Co., one of the largest US newspapers group, said Friday it would begin moving toward paywalls for its news websites in response to the industry's economic woes.

McClatchy Co., one of the largest US newspapers group, said Friday it would begin moving toward paywalls for its news websites in response to the industry's economic woes.

The publisher of 30 dailies including The , Fort Worth Star-Telegram and Kansas City Star said it would begin "metered" Web access in five of its markets starting in the third quarter.

"We will offer readers a combined print and package that will include access to Web, certain mobile and replica editions for a relatively small increase to print home-delivery rates," McClatchy president and chief executive Pat Talamantes said in a statement.

"We'll also offer online-only digital subscriptions to users after they read a certain number of pages. Once the first wave is launched, we intend to expand this model to our other markets beginning in the fourth quarter of this year."

With newspapers under pressure from declining print circulation and advertising, publishers are struggling to get revenues from websites, which have been mostly free.

The began charging in March 2011 for full access to NYTimes.com and it launched a subscription-only website for the in October.

Gannett, the largest US newspaper chain, has also begun moving toward charging for online access at some of its dailies, along with MediaNews Group Inc.

McClatchy said it earned a profit of $26.9 million in the past quarter. Revenues fell 4.8 percent to $299.3 million, with drops in circulation and print advertising offset in part by growth in digital ads.

Explore further: New York Times net profit dips 26 percent

Related Stories

New York Times net profit dips 26 percent

February 3, 2011

The New York Times Co. on Thursday reported a 26-percent drop in quarterly net profit as an increase in digital advertising revenue failed to make up for what it lost in print ads and circulation.

NYTimes.com to start charging readers 'shortly'

March 2, 2011

The New York Times said Wednesday that it is in the "final testing phase" of its plan to charge readers for full access to the newspaper's website and will start doing so soon.

Over 100,000 paid subscribers for NYTimes.com

April 21, 2011

The New York Times Co. released its first figures on Thursday since it began charging for full access to NYTimes.com, saying it has signed up more than 100,000 paid subscribers in three weeks.

NY Times profit soars on asset sales

April 19, 2012

The New York Times Co. said Thursday that first-quarter profit jumped sevenfold, boosted largely by the sale of its regional newspapers and shares in a New England sports group.

Write-off contributes to NY Times losses

July 26, 2012

The New York Times Co. posted a loss of $88.1 million in the previous quarter on Thursday, as a write-off in the value of website About.com wiped out gains from increased online subscriptions.

Recommended for you

Robo-whiskers mimic animals exploring their surroundings

August 4, 2015

Many mammals, including seals and rats, rely on their whiskers to sense their way through dark environments. Inspired by these animals, scientists working at the University of Illinois at Urbana-Champaign and Illinois' Advanced ...

2 comments

Adjust slider to filter visible comments by rank

Display comments: newest first

Shootist
not rated yet Jul 27, 2012
And they'll move away when nobody visits.
gopher65
not rated yet Jul 28, 2012
Eventually online ad rates will increase. As print newspapers slowly go out of business or switch to online distribution models, and as TV shows see increasing timeshifted viewing (both online viewing and DVR viewing), ad models will *have* to change.

The reason for this change won't be external pressure, but rather internal pressure. Companies will still want to advertise, and if they can't do so via traditional means, they'll slowly bid up the price of online advertising (and product placement as well, likely).

Once that happens "free" ad-supported newspapers, radio, and television will slowly begin appearing online. In small numbers at first -- until the tipping point is finally reached. Then there will be an avalanche of ad-supported high quality content available online.

It's inevitable.

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.