It’s coming. Advertising revenue has enabled news to be virtually free for 100 years. In the digital age there will be a price tag. David Kaplan of PaidContent.org:
WSJ readers on Blackberry and iPhone will be charged $2 per week, with print and online subscribers having to pay $1 per week.
Quoting News Corp.‘s Rupert Murdoch on the future of news and digital devices:
More people will be buying their newspapers on portable, flexible devices instead of crushed trees. It won’t be soon, it could take 20 years. But there will be no paper, no printing plants, no unions. It will be a great future.
So, why are newspapers and magazines in financial trouble? Advertising has shifted to online, but not sufficiently to cover the high cost of traditional media publication and production. In other words, costs are too high; online ad revenue is not sufficient to turn a profit.