A letter from the National Business Review's publisher

Dear Reader,

The National Business Review is introducing a new paid Subscriber Only Content service to augment its regular news service.

These selected, top stories will be aimed at providing you quality, original, useful material you will not read anywhere else. And they will be relevant to you as a time-poor business person. They will add a new quality dimension to business reporting in New Zealand.

We will be offering you an introductory subscription rate for access to this exclusive content for $89 (normal rate $149). This will allow you automatic access to all Subscriber Only Content for the next six months. The cost is a little more than 80c a day and I promise you it will be one investment you won’t regret.

I expect about 20 per cent of our web news to be Subscriber Only Content. The exact ratio will vary as we will be using the category for only the best news stories, scoops and commentary pieces that we post on any one day. Besides the serious issues of the moment the content will include large doses of satire and goings on uncovered by our nosey Private Bin reporters.

As you know, there has been endless discussion for a number of years about the crazy model adopted by newspapers in most parts of the free world in which they pay the enormous costs of running professional newsrooms only to give their content away free – while at the same time slashing newsroom numbers to save money as circulation and advertising revenues fall.

And to add to the madness it has been the aggregators that have profited the most from the supply of that free news copy. Worse still the model has spawned a huge band of amateur, untrained, unqualified bloggers who have swarmed over the internet pouring out columns of unsubstantiated “facts” and hysterical opinion.

Most of these “citizen journalists” don’t have access to decision makers and are infamous for their biased and inaccurate reporting on almost any subject under the sun (while invariably criticising professional news coverage whose original material they depend on to base their diatribes).

It is only a matter of time before the model collapses. The alternative is newsrooms decimated to the point of processing public relations handouts or unedited government propaganda from their fully staffed team of spin doctors.

Overseas the Wall Street Journal and The Australian Financial Review have successfully instigated subscriber paid policies for premium content and legendary publisher Rupert Murdoch has promised the days of the internet’s “free lunch” news service from his newspapers is about to end.

Our move to Subscriber Only Content has been driven by our belief that laying off journalists as a cost-cutting tactic is a route to oblivion for newspapers. I know there have been previous attempts by New Zealand publishers to charge for their news and these have failed and left them so far scared to attempt new initiatives.

What we will be introducing will not make the mistake of providing journalism as usual and charging for it. We know that we will have to provide a consistently superior news service and I believe you will quickly see we are up to the challenge.

We are at a tipping point in The Great New Journalism Adventure. I hope you will join us in creating a bit of history and subscribe.

Best wishes

Barry Colman
PUBLISHER
bcolman@nbr.co.nz

P.S. Thanks for taking the time to read this. Old journos like me always over write. We get a bit carried away. When I started out pages were on paper and had an end to them. And thanks too for visiting our home page. Please tell your friends how good it is.

Comments

paying!!!

I'll pay when you get real stories that make a difference in the business world. Not just hashed stories that have no base.
What story has the NBR lifted the lid on in the last 12 months that has made a difference??

Deja vu?

Barry, didn't you already try this model way back in the late 1990s?

Did it work then?

While I applaud you for your desire to avoid staff cuts, I think your approach is very simplistic and short-sighted. Instead of taking the "easy" way by being a follower and employing a method that has already proven (in the case of NBR) *NOT* to work, why not think outside the square and become a leader?

There *ARE* ways to make news publishing work online -- hell I did it with 7am.com way-back at the same time you were losing money with the original NBR by adopting this flawed model.

As for bloggers leaching your content -- you really are being quite myopic there.

Remember the key aspect of the internet: leverage!

The reason 7am.com went from nothing in 1997 to having a greater reach than the news websites of BBC, CNNfn, FoxNews, Washington Times, and even *PlayBoy* by 1999 was very simple and still applies today -- albeit with a twist.

Here's a clue -- your traditional readership may no longer be the biggest source of revenue available to you.

There are many exciting and profitable new online publishing models just waiting to be adopted. Whoever is willing to break away from last century's ad-funded/subscription model first (and do it properly) will reap very rich rewards.

Don't be a lame follower of other people's strategies, be an innovative trend-setter and show others how to do it.

ps: my door is always open if you want a chat.

And how does one do this?

I would be prepared to give this a go for $89 for 6 months BUT TRY AS I MIGHT I CANNOT FIND ANYWHERE ON THE WEBSITE THAT LETS ME DO SO. I am offered print subsciption or digital replica - neither of which matches Barry's proposal. Am I missing something (apart from the blocked conent)?

Pay?

Thanks...............but no thanks

Lose more than you will gain

As a subscriber to your print edition for over 10 years I am seriously contemplating dropping my subscription. I agree with Aardvark above, that the path you are taking is a rocky one indeed.

I have ardently supported the NBR brand with advertising my company in it frequently and reading the daily emails. This is a blatant mechanism to screw over your loyal supporters. Why not provide the online stories as complimentary to subscribers??? Hight have been a good idea! Too late now.

There must be a better way and we do expect more from you. Try harder.

And Now for Something Completely New...

Love it! 'In order to provide you with a better service, we're going to charge you for something you currently get for free...' Oh well, back to smh.com.au, nzherald.co.nz, goodreturns, interest.co.nz for my morning catch-up.

Big mistake

I wont be subscribing, the simple reason is I have a news bookmark with 10 newspaper websites with free content and the stories you publish will eventually appear on one of these sites, Also as an interested property person I find Bob deys website a lot more informative on the subject. A quick google search finds the stories you what me to subscribe to are available on http://newsriver.co.nz/.

oh dear

Thoughts? As someone who has bene involved in online revenue models for a decade or me I think you are misisng the point here. Sure your revenues will increase in the short term but your readership base will decline very quickly indeed. Suddenly those long-term revenue projections don't look as good, do they.

Shame, but as others have said NBR doesn't offer something that can't be found elsewhere.

Pay?

For what? News I can get for free anywhere else, good luck LMAO. It is so rare that there is a story on here that isnt on Stuff, NZ Herald, Business Day, or Bob Dey.

Good luck Barry

How many companies in these difficult trading conditions will be willing to spend money to subscribe to news stories? Most have already cut newspaper and magazine subscriptions.
So…all the best Barry, as my colleagues, friends and family are all off to free news sites.

User Pays

Barry,
There is no indication today that the 'subscriber only' content is worth $89. Since we are unable to access it, how do we know that it is oinin to be ' a consistently superior news service' .
A one month subscribed trial period is teh way to introduce a 'new product', whihc may only be the old dressed up in 'drag'.

AND as for yhour paragrahs reading :-
Worse still the model has spawned a huge band of amateur, untrained, unqualified bloggers who have swarmed over the internet pouring out columns of unsubstantiated “facts” and hysterical opinion.

Most of these “citizen journalists” don’t have access to decision makers and are infamous for their biased and inaccurate reporting on almost any subject under the sun (while invariably criticising professional news coverage whose original material they depend on to base their diatribes).

This is the very sort of drivel that has brought newsmedia editors into disrepute, and is largely responsible for the demise of the 'Daily newspaper circulation'.

Some of the most inaccurate, and certainly most politically biased reporting I have read has been from your 'proffessional trained reporters'.
Sensationalisim is not the same as reporting facts.

Most bloggers make intelligent comment. The fact that it may not suit the ideology of the editorial p[olicy does not make it ill-informed. Remember Barry, we actually live out in the real world, and are the movers and shakers of commerce; the ones who are trying to create employment, and in many cases succeding despite the sensationalist politically biased reporting which is so common today, both in new papers and on TV.

This move by NBR may well be the 'nail in the coffin'

What a Joke

Good luck with your 'pay per peep' plan .... I will stick to the free content sites thanks Barry

So what

Happy to continue with my other free online news services without NBR - only use it to ensure that one of my dozen or so online news feeds gets the news to me quickest - NBR seldom does.

I don't buy into your arguments at all - this is simply a revenue shortfall issue and you're annoyed that you have to pay people when others don't. Get off your high horses, start delivering high quality news that leads the market and I might consider renewing my hard copy subscription.

But up until yesterday, your online service looked like you were the the aggregation site!

Suzzane Paul

She's your first piece of news offered paid subscribers only.

You classify her news as information us "time-poor" businessmen must have?

Goodness - based on that 1 article alone I can the value of the paid content will also be filled with xmas stocking articles.

Labelling the Subscriber Only stories.

Please label your Subscriber Only stories in the RSS feed so I don't bother clicking on them. Better yet, create a feed that doesn't even include them.

I think these should be free for print subscribers. I really don't see how this is worth $89.

Get

Go get stuffed Barry. This website has nothing to offer over any other business news site.

Suzanne Paul and paid content

Funny how at least two of the items in the 'Most Popular' side bar are paid content, there must have been a lot of sign-ups already..... I think not.
This model is flawed - it annoys your readers then they leave.

Suzanne Paul

Barry, if I want to read about Suzanne Paul i can buy the tabloids. I am astounded that you see this as being worthy of your first 'subscription' story.

Anyway, suggest you monitor the change in both your paid print subscriptions and online followers of NBR over the next month or so - a school child can tell you that it ain;t going to make pretty reading!

Still, as one of those 'time-poor' business-men you talk about, thanks for saving me 15 mins a day that I used to spending on the NBR email updates.

This could be the end of the NBR, ah well. Nice while it lasted but you are not providing a real USP to justify the charges online. Suzanne paul eh......

Everybody's free

My guess is the ex CEO at Fairfax & RWC87 winning captain has had a word in your ear & thats why your running with it.

However It doesnt work for the Fin Rev (afr.com) site. You just copy the headline into google & most times its on some other site.

It hasnrt worked for them & it didnt work for the WSJ.

Anyway in Aus people just buy the Fin Rev 6 days a week for $3 or most cafes have a fresh copy daily.

One company who will be happy is Media Monitors. For business clients why bother paying and logging in when they will just forward any stuff you need to your inbox

Subscription

Hmmmm - stories we need? - would these be the same stories that your journos tell me they are increasingly lifting straight from press releases because they dont have the time or the resources to produce "proper" stories due to the 4 stories a day regieme you have implemented in order to create the impression of Lotsa hot fresh content online??

Quality NOT quantity please....

Are Existing Subscribers Valued?

Obviously not! Not only have you decided to introduce a subscription charge but there was hardly any notification of it's introduction.

I don't see any value in the subscription charge. I've previously read the NBR emails to keep up to date with what is happening, but will now rely on other free services. No point in receiving the NBR service if you can't read half of it.

I feel aggrieved that our organisation pays for multiple print subsciptions each week, and are now expected to pay on-line subscriptions as well. I would have thought the on-line service could be free for those already providing you with significant revenue.

We won't be paying any on-line subscriptions, and will review our print subscriptions.

Out of touch with digital meida

My concern for your new subscription service is that it may only earn you the grand total of 80 cents per day from one single subscription.

That’s the true cost of providing every internet user on the planet exclusive access to your subscription only service, albeit with a 10-15 minute delay.

Good luck but no Thanks

I'm nasty leaching blogger

As one of those horrible bloggers who leach off the content of the NBR's hard work, I've published a column on the topic of NBR's step backwards today.

Oh dear.

I'm sure that the average NBR reader will be smart enough to work out where to find it.

Thanks but no thanks...

I'm going to pass on the subscription and perhaps on your site overall Barry until you have another think about this over a cup of tea.

Cheerio Bazzer - NBR has

Cheerio Bazzer - NBR has just been taken off my site list.

By the way your comments about the role of bloggers are excremental - I have lost count of the number of poorly researched and clearly biased pieces turned out here by your so-called professional journos. The truth IS out there - but relatively little is available mainstream sites anymore.

Pay, no way

Hey guys get real.

If you have to have subscriber content then get the links off the free pages.

I have just bought a years subscription to the printed weekly, one thing I noticed straight away was how thin it had become. Don;t come back with "quality rather than quantity"

I enjoy reading the FREE content and commenting, but if the web pages clutter up or less free material is available to view for less time then I'll probably pay less attention to the site.

As Anonymous at 09:02 am says, Barry and Team need to come up with new and better value propositions not just clipping the ticket.

Take heed NBR, you are on a slippery slope.

Find another way to generate revenue from the web site, or your content. I for one would expect as a subscriber to the printed paper to get access to a "subscriber section" on the web.

The next fireworks display may not be on a float celebrating the family wedding, but the fall out from an ill conceived revenue capturing exercise.

Innovative model

This does not seem to be an innovative step at all.

The NBR seemed to be heading towards quite an interesting model, which had more and more reader feedback, and interesting content.

The $149/six months is a regressive step. This is very steep for content, and does not seem to cater for those interested in reading a little of the content. There are far more innovative models that could have been taken, especially as the NBR was becoming a good forum for feedback. (For me a micropayment (e.g. 2c per page) would have been much more palatable.)

Good luck - but this could be the start of a death spiral. BTW - the NBR is not the WSJ....

NBR Commet?

will be interesting to see if NBR bother to comment on this story in their next online bulletin. Firstly, if it not at the top of the 'most popular' stories then we will know that the NBR are just being misleading.

More importantly, anyone with a basic knowledge of the online world would realise that this would be a 'hot topic. Surprised that no-one for the NBR has tried to defend their position. Shows either arrogance and / or indifference - either way the NBR is doing a good job of trashing trashing all the hard work and good will they have gained form their online product.,

Page Views

Interesting how views of pages that are locked (subscriber only) count towards highest view counts. Does that mean that most people have decided to pay?

Aardvark

I'll say one thing for you Bruce S - you've certainly got the "self-promotion by sounding like you are an expert on everything" model sorted. But how much money does it actually bring in? I'm betting Barry drives a nicer car.

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