Wait, Wasn't A Paywall Supposed To Boost Ad Revenue?

from the that's-what-we-were-told dept

One of the claims we regularly hear from supporters of online newspaper paywalls is that even if it decreases page views, it can actually increase ad revenue, because the publisher has a lot more information about the audience and can sell that for more — and, in theory, the audience is more loyal and engaged. We still haven’t seen that in practice, of course. And it’s worth pointing out that Cablevision, who put up a disastrously ill-conceived paywall for the newspaper Newsday, is now reporting that ad revenues continue to decline pretty substantially. To be fair, some will point out that Cablevision doesn’t care that much, and is really just trying to use Newsday to stop people from dumping their cable TV/broadband offerings. That may be true — and the same report does note that Cablevision added both TV and internet subscribers — but it’s worth pointing out for other news publications who make the claim about how paywalls can boost ad revenue.

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Companies: cablevision, newsday

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Comments on “Wait, Wasn't A Paywall Supposed To Boost Ad Revenue?”

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11 Comments
DSchmelingsays:

Re:

I dunno, I like Schrodinger’s Cat. And sometimes I’m really curious as to what it has to do with some woman’s chicken… Maybe if you put the chicken in the room with a cat locked up… Yeah, and a bit of radioactive wonderfulness that if it decays unleashes the cat upon the chicken… Hmmm, Schrodinger’s Cat eats Strange Woman’s Chicken, it’s got awesome written all over it!

Anonymoussays:

Honestly the only reason I haven’t signed up to a Newsday or a Times is because of all the extra nonsense that clutters up their portal. I mean honestly? I don’t care about some piddling civil war or third-world hunger or this year’s elections – they just get in the way of all amazing free ipods and laptops that I can win, or the internet virus scanner!

Advertising Revenue and Schrodinger's Cat

I think that there is a correlation problem.

Advertising revenue is declining for a lot media irrespective of whether a pay-wall exists or does not exist. So the question becomes: How can the loss of adverting revenue be attributed to the pay-wall?

I’m confused as to the relevance of Schrodinger’s Cat to the chicken. With Schrodinger’s Cat, the cat’s state (existence) is undetermined and does not become established until examined.

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