Newsday.com moves to subscriber model
http://www.newsday.com/long-island/nassau/newsday-com-moves-to-subscribe
r-model-1.1539582

Beginning Wednesday, most of Newsday.com  content will only be available
to subscribers of Optimum Online, Newsday, or those willing to pay for
it.

Those who are not customers of Optimum Online or the newspaper - both
owned by Bethpage-based Cablevision Systems Corp. - will have to pay a
$5 weekly fee. However, nonpaying customers will have access to some of
newsday.com's information, including the home page, school closings,
weather, obituaries, classified and entertainment listings. There also
will be some limited access to Newsday stories.

Newsday described the move as one that would create a "pioneering Web
model," combining the newspaper's newsgathering services with
Cablevision's electronic distribution capabilities. About 75 percent of
Long Island households are Newsday home delivery or Cablevision online
customers or both, according to Newsday. Optimum Online customers total
2.5 million in the New York area, the paper said.

"We are excited about this model because in addition to a unique ability
to immediately reach about 75 percent of Long Island households, we
believe the hyper-local approach is right for Long Island," said Debby
Krenek, Newsday managing editor and senior vice president/digital.

The new strategy comes as newspapers have been scrambling to replace the
advertising-based model after years of steep revenue decline. Charging
viewers for online content has been debated in the newspaper industry in
the past few years.

Jack Myers of Jack Myers Media Business Report, a Manhattan-based
economic research firm, said, "In the long term, it's a zero-sum game.
Basically what you are doing is you are shutting off younger audiences
from getting access and becoming fans of your content, so it strikes me
as a pretty short-term protective measure that will be a great case
study for the industry."

However, John Morton, head of the Morton Research Inc., a Silver Spring,
Md.-based media consulting firm, said the current model of free online
content is not a "rational model."

"Despite the false premise that has been floating around for the last 19
years, that information on the Internet wants to be free, [it] is just
not true," Morton said. "People have always been willing to pay for
information they have felt was useful to them."
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