Globe And Mail Paywall: Newspaper To Charge Readers For Online Content

CP  |  Posted: Updated: 05/10/2012 9:51 pm

TORONTO - The Globe and Mail will soon move to an online pay-per-view model, the newspaper told employees Thursday as it also asked them to take unpaid leave in moves that will help the newspaper improve its bottom line.

Phillip Crawley said Thursday the newspaper has decided that beginning in the fall, premium content will be shielded behind a paywall.

"I think there is a broader general move towards charging for content," Crawley said.

"It doesn't mean that everything is sealed off because it's a metered paywall, it means that if you go beyond a certain number of stories you want to access you end up paying something for the privilege of doing that."

Crawley said the paper had already planned to put Report on Business content behind a paywall this fall, but "as we've looked further into this, we think it's right just to take the plunge."

The Globe spent the past year studying similar strategies at papers like London's Financial Times, The Wall Street Journal and The New York Times.

In Canada, Postmedia (TSX:PNC.A) began experimenting with a "metered'' or paywall model at some of its papers last year and is rolling the model out to the rest of the papers in its chain. And Torstar (TSX:TS.B), owner of the Toronto Star newspaper, has already begun charging readers for online articles from its Hamilton Spectator daily.

The Globe and Mail is still working out the details on pricing structures and Crawley wouldn't give any further indication as to how the system will work. The Times allows readers to access 10 stories per month before paying, but print subscribers get access to all articles at no additional cost.

"Clearly the traditional revenue model is changing. Over the last 10 years we've seen a lot more digital revenue from ad sales but we haven't done a great deal on the subscription side, so this is an area that is still relatively untapped for us," Crawley.

"At the same time, we've got to look at the existing costs of the business. As some of the traditional sources of revenue decline we need to look at where our resources are and make some shifts."

In another move that comes as the news industry continues to cut costs to offset declining revenue, management told employees at a town hall meeting Thursday that it is seeking volunteers to take any number of weeks of temporary leave over the slow summer months.

"That's something we're just trying to do to manage the business better this year," Crawley said.

"Our new fiscal year starts on September the 1st, we hope by then we see an improvement in market conditions and the people who have been on temporary leave will come back to us and be working flat out."

Crawley said the paper is targeting the equivalent of 80 employees, or 10 per cent of its workforce, under the program. If the target is not reached, he adds, management will consider alternatives such as involuntary temporary leave.

"We're not talking about permanent layoffs," he said.

Sue Andrew, unit chair at the Southern Ontario Newspaper Guild, said volunteers have a one-week window to apply and will be able to choose how much time they take.

The union is working with management to determine how to best mitigate the impact on employees.

Andrew said the union is relieved that the management is so far not asking for permanent staff reductions.

"We're supportive of any efforts it takes to avoid layoffs."

In the decades since the advent of the Internet, newspapers have witnessed a hollowing out of the industry as a result of declining revenues.

But Crawley thinks readers are ready to pay for the type of value-added content — including columnists, video and other "specialist" content — it plans to charge for. Breaking, or "commodity" news, and wire service stories would not likely be behind the paywall.

"We believe the loyalty that we've got and the quality of the content will persuade them that this is something that they are happy to pay for."

The Globe and Mail is part owner of The Canadian Press, the national wire service.

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Filed by Christian Cotroneo  | 
 
 
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10:35 AM on 05/13/2012
What a whiny, snivelling, entitled group we seem to have here. Don't any of you pay attention? The Internet is becoming more and more monetized. This stuff is not produced for free. No online content will remain completely free for much longer. Do you people really believe that everything should be free? Do you work for nothing?
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BCPATRIOT
British Columbia
08:22 PM on 05/11/2012
The Globe & Mail bye we sure won't miss you.

The Huffington Post, National Post, Toronto Star, Vancouver Sun just to mention a few are 100% better then the G & M.

Don't let the door hit you in your $$$ on your way out.
HUFFPOST SUPER USER
Kenneth T Tellis
06:16 PM on 05/11/2012
Thank God I do not read the Globe & Mail, so I am not worrying how much they charge for their Internet info. I think about it in a very different way, because the Globe & Mail would have to pay me to read their inane drivel. I read most newspapers, but choose the National Post, and most U.S. news media for my info. Beside that I am not a LEFTIST!
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HUFFPOST SUPER USER
Doctor Nick
Hi, everybody!
04:59 PM on 05/11/2012
Bye G&M, I just can't give you money in good conscience after the editorial drift to the right over the last decade. I still like your news and lifestyle sections, but there are adequate substitutes. I wish we had a high-brow left-leaning paper in Canada like The Guardian, Le Monde, or (arguably) the New York Times because I don't love the Star, but at least I don't feel like I'm supporting Harper's re-election campaign when I give them money.
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HUFFPOST SUPER USER
greysells2
grey cells matter
04:54 PM on 05/11/2012
I don't need G&M content to be well informed. So I won't pay and, therefore, the G&M loses all chances of influencing me and all the others like me through their stories and advertisising. Customers that are lost are very hard to win back. I used to read the G&M everyday and now I read it only when I'm in a hotel or on a plane. That's all. Good luck, G&M.
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04:15 PM on 05/11/2012
if the G&M doesn't want me reading their news no problem, I'll go else where, starting now.
03:41 PM on 05/11/2012
So, behind the paywall, will there be actual journalists that don't plagiarize? Will there be an independent point of view or we still have Wente and Rah Rah Harper?
01:00 PM on 05/11/2012
Will they charge to look at " Watchlist "? I notice it is no longer updated the same evening as the TSE closes but the next day.
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HUFFPOST SUPER USER
arkymorgan
Nobody knows the trouble I've been...
12:33 PM on 05/11/2012
And yet another story showing that traditional business-people just do not 'get' the internet...

Globe and Mail: you deserve to fail.
12:13 PM on 05/11/2012
That'll be the time I quit going to their website. There's so many websites out there where the exact same stories can be found so there's no need to pay for them.
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HUFFPOST SUPER USER
cityprole
old,sly, crafty,arty, leftie
11:28 AM on 05/11/2012
LOL!! Quit reading it awhile ago, got to be so right wing I lost all interest... ..just like the BC Ferries, charge more and have fewer and fewer readers/riders..
11:13 AM on 05/11/2012
My local news paper does the same thing. I see no problem with it.
They have a free version that covers top stories. They also have a paid for subscription that
covers the whole news paper.
I myself still enjoy reading the hard-copy that comes to my door in the morning.
It is the little peace that I take for myself before starting my stressful day.
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Opus Fideo
Atheist. Social Democrat. Canadian.
10:40 AM on 05/11/2012
Lol well that's the last time I ever read their sh!tty newspaper.

Readership is going to drop significantly
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HUFFPOST SUPER USER
Scoville Scale
Canadian Contrarian
07:27 AM on 05/11/2012
I'm a news junkie.
Can't get enough.
But... I used to read the NYT online. I don't anymore.
I will never pay for content.
If your website isn't profitable, or it's too much of a drain, do the honourable thing and just shut 'er down.
yer
Stop the Alberta Taliban
03:01 AM on 05/11/2012
Maybe if it hadn't sold out to Harpergeddon 3 times in a row and lost all credibility it might still have subscribers. They left and the shill is now wondering where all the income went. So be it. G'bye Harper PR machine, we will not pay for Harper tweets and senate seat begging essays