A November 2009 Forrester Research report suggests that 80 percent of Americans won’t pay for online newspaper or magazine subscriptions. Your thoughts?
Among the things I’ve seen in the last year, that was the single dumbest analysis I’ve read. First of all it uses the term ‘pay wall,’ which I think is a 2007 term. We don’t use it. It implies you just put a wall up and you lose all your ad revenue. The numbers in that were completely wrong. It’s as if this guy’s living on another planet.
So this idea that only about 20 percent of Americans will pay for some form of online subscriptions seems wrong to you?
That’s the best news I’ve ever heard, because our model says The New York Times and every other publication you can think of will do fabulously if only 10 percent pay. Only 20 percent will pay, that’s like saying, ‘I have an idea to sell BMWs, but unfortunately only 20 percent of Americans will buy one.’ It’s absurd.
Does that mean that in a couple of years you see everyone paying for some online news content?
Yes, steadily more of it.