Rupert Murdoch has been making a lot of noise lately about charging for the right to view content on his web sites. He seems to get quite a bit of publicity from his tirades, which I guess is a good thing for him – after all, he has to make some money to pay for Myspace.
But while the media is discussing whether his scheme to charge for access will work or only hurt his media empire, most of the discussion is missing the point, because they assume we are all strict followers of copyright laws, and if we happen on a bit of news which came from one of Murdoch’s papers we would stop reading it, or immediately write him a check and get a subscription.
If Murdoch was to block completely the Sun (in the UK), the New York Post, and as far as I am concerned the Wall Street Journal, he would be doing the public a favor. Ditto for his TV and Satellite services. But that is beside the point. If we assume that his content is worth paying for, say $100 a year, what is to stop someone in Belize, Isle of Man, or another country where copyright enforcement is a bit lax, from shelling out said $100, then offer them for $1 a year to subscribers? This should be a pretty good business proposition for the pirate, AND for his subscribers, too.
Which is why I doubt pay walls would work. I suspect that even the Wall Street Journal, which is mentioned as a site that ’successfully’ charges for membership, is only prospering because the people who read it don’t really pay for it – they charge it to their employer – banks, hedge funds, etc.
I think that there is a need for new income distribution, which compensates content providers for their expenses and lets them make a profit. Pay walls, however, are not going to work – they will make more money to third party illegal aggregators than to the news media. But that is a subject for another blog.