New Delhi: Global media firms can counter
effects of advertising slump if they start charging for online
news, a study by The Boston Consulting Group says.
According to the research, consumers are willing to spend
small monthly sums to receive news on their personal computers
and mobile devices.
"The good news is that, contrary to conventional wisdom,
consumers are willing to pay for meaningful content. The bad
news is they are not willing to pay much.
"But cumulatively, these payments could help offset one
to three years of anticipated declines in advertising
revenue," BCG senior partner (global media sector leader) John
Rose said.
The survey found that consumers are more likely to pay
for online news provided by newspapers than by other media,
such as television stations, websites, or online portals, the
study revealed.
In addition, consumers were more likely to pay for
certain types of content, specifically news that is unique,
such as local news, with 67 per cent overall respondents
being interested and about 72 per cent of US respondents.
Moreover, specialised coverage was also considered by 63
per cent overall respondents which can be paid for along with
timely (such as a continual news alert service) coverage.
Besides, the news which can be conveniently accessible on
a device of choice also found favour with respondents.
Bureau Report
First Published: Wednesday, November 18, 2009, 18:32