MARY PESKIN | Eager to know what paid content strategies are being launched in other organizations? We checked in with a few dozen newspaper Web sites to find out how they're faring behind online pay walls. Starting today, we'll begin profiling paid content initiatives. You can download the complete list of Paid Content Profiles. We hope you will join in the conversation and add to the list.
Our ongoing research into online revenue strategies shows that many news organizations are considering charging for content online, and they're exploring a number of different pay models.
Since this is the height of football season, our first profile is a niche sports site, TideSportsExtra, launched in August in Tuscaloosa, Ala. Doug Ray, executive editor of the New York Times Co.-owned Tuscaloosa News, recognized the insatiable appetite among University of Alabama football fans for news, features, interaction, and just about anything to do with the Crimson Tide as his best opportunity to persuade readers to register and pay for online content.
He reasoned that avid football fans would follow Cecil Hurt, "who is our lead columnist and regarded as something of an oracle among those who follow the team. He is easily the most respected authority among columnists who cover UA sports."
"We did almost no research on launching TideSportsExtra , but we have a pretty good handle on what readers want," said Ray. "We've been at this a while, both in print and with our [free-access]TideSports.com site. That said, we are in the process of developing a survey for TSE subscribers to determine satisfaction and perception of value."
At $59.95 per year or $10 per month, subscribers get access to new content -- an expanded offering of more highly produced video, including several videocasts, and a recruitment blog. Ray said that their pricing strategy is in line with competitors and similar fan sites elsewhere. Subscribers "also have access to a forum discussion that is more focused and civil because people are paying to come to it," said Ray. "Like most free-access forums, the discussion on TS often devolves into silliness and worse. We have moved Hurt's columns and his weekly videocast behind the pay wall. You only get Cecil's columns if you pay -- either for the print edition or for TSE."
Only a couple of months into the effort, Ray thinks they are on track with expectations. "We have about 350 paid subscribers so far, and it's continuing to grow slowly. About 80 percent of subscribers are joining for a year. We cycled our first cohort of monthly subscribers, and 80 percent of them renewed. That's a good indication of reader response."
That number of subscribers seems small when you consider that UA's Bryant-Denny Stadium holds more than 92,000 football fans. "We are learning more about marketing," Ray said. "We've relied primarily, so far, on selling this through newspaper house ads and TS. That isn't going to do it." The real opportunity for the online membership is Crimson Tide fans all over the country. Less than 5 percent of the potential market for TSE lives in the Tuscaloosa area, said Ray. "We're using some behavior-marketing ads through Yahoo and more marketing at home games."
The fact that the Crimson Tide football team is currently undefeated and ranked No. 1 in two national polls doesn't hurt. Ray hopes to build quickly to 500 core members to establish a solid foundation for forum discussions and the momentum to grow audience. Ray said TSE "needs to have a positive financial impact on our operations." He thinks it will within the first year. "We also hope to gain valuable experience on launching pay models and experimenting with everything from pricing to audience expectations. Another success will involve establishing perceived value for content."
If you're a daily newspaper executive interested in participating in the API/ITZBelden survey of online revenue initiatives, please contact me.
