“The advertising model is in jeopardy.”
That’s what media strategist Nancy Wang of Mignon Media concluded during a webinar on online revenue attended by Newspaper Association of America members this afternoon.
A participant asked Wang why companies should bother implementing one of many revenue models her firm suggests for newspaper publishers. The model in question is a hybrid paid/free model (80 percent free content). “Isn’t there a risk of losing traffic in exchange for subscription revenue?” asked the participant (I’m paraphrasing).
Wang was blunt. “The advertising model is in danger unless we figure out on the first try exactly how we can prevent the advertising from going down quickly.” She stressed paper publishers must experiment.
The company has more info on their revenue models listed here.