It’s the biggest worry for any newspaper proprietor out there. Actual paper sales are on a downward trajectory while traffic to their websites is flying upwards – but how can they make a viable business model out if?

A quick look at the numbers underlines this mounting difficulty. For example, digital revenue comprised less then 10% of Trinity Mirror’s regional revenue in 2008 and although newspaper sites are amassing huge numbers (MailOnline had 29.4 million global unique users in June), domestic advertisers are reluctant to pay for a largely overseas audience. On the flip side print ad revenue is falling fast – Associated Newspaper saw revenue fall 15% yoy in Q2. So something needs to be done and fast.

Last week, Rupert Murdoch declared that News Corp newspaper sites would soon begin charging for online access. The likely model is going to be charging for premium subscriptions to the Wall Street Journal while The Sunday Times in London is planning a stand-alone website.

Some rivals have been quick to dismiss the idea as there are so many free online news sites such as the BBC so why would consumers pay for it? However, Murdoch believes we will pay for celebrity news, major scoops and exclusive content.

So the key to success would seem to be having that content people are willing to charge for – and this focus on high quality, opinionated content and scoops could be the shot in the arm for under pressure (and sometimes understaffed) newsdesks. While the system of charging needs to be made as simple as possible with clear entry points and ‘walled-garden’ systems.

Murdoch won’t be the first to try – The FT have done it with some success while The New York Times had to rapidly u-turn on its first attempt at a charging system.  Critically though, he will be the biggest to try and there’s no doubt the rest of the industry will sit up and watch with interest.

Lest we forget he’s led the field before in proving people will pay for unique content – twenty years ago Sky was launched off the back of sport and movies.

By Dominic Curran on August 17th, 2009

Tags: Branded content, Communications, Default, Media