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...percent had online-only subscriptions. The remainder received access as part of their home delivery subscriptions, McNulty said. But many readers—including college students on notoriously tight budgets—were not pleased with The Times’ 2005 decision to charge for content. “I read [The Times] every day,” said Chia N. Mustafa ’09. “So I was kind of pissed off—news should be accessible to everyone.” In the year and a half since TimesSelect was first introduced, the newspaper...
Viacom's aim, CEO Philippe Dauman said at an investor conference, was to "show our content in an environment we control." But online audiences gravitate toward neutral platforms that old-line media companies don't control, from Google's search box to Apple's iTunes Music Store--and to YouTube, which already gets more traffic than all the TV-network websites combined, according to research firm Hitwise. "Eventually all of the copyrighted content will be available on virtually all of the sites," Google CEO Eric Schmidt said in an interview on Bloomberg TV. "The growth of YouTube, the growth...
...will YouTube and sites like it ever deliver media companies the sort of return on content that they're accustomed to? Google's big stroke of moneymaking genius was to sell ads linked to its search results and sell them to anybody. With five minutes and a credit card, you can sign up to bid on a search phrase--cream cheese, say--and pay Google only if people actually click through to your site. Google has since extended this advertising network to other sites, so your ads might show up next to a food blogger's post about bagels...
...small advertisers and publishers, Google's automated advertising network is a boon: a new, cost-effective way to connect with one another and with customers. But big media companies had already established connections before Google came along, and so far the amounts of money Google offers content producers are paltry compared with what gets thrown around in traditional media. This is especially true with online video, where nobody has really figured out how to match ads to content. YouTube, which Google purchased for $1.65 billion in October, took in just $15 million in revenue last year--less than the cost...
That said, YouTube's audience is growing fast, and there is a certain inevitability to Schmidt's vision of a world where all content producers succumb to the rules of the Web. Hagel, a veteran at parsing the strategic implications of the Internet for business, thinks established media should be trying to "build relationships with audience members" by recommending content made by others and encouraging participation. He's probably right about this, but lots of purely online companies--among them Yahoo! and, yes, Google--are working on it too. The upshot is that content may increasingly have to stand...