Tuesday, March 22, 2011

Paywalls and leaks — are they desirable?

The Nieman Labs note that the new New York Times paywall, already live in Canada, can, in current incarnation, be cracked with just four lines of Javascript. And, it says, beyond that, that some "leakiness" in a paywall, if the media company knows how to manage it, can actually be a good thing.

The story approaches the issue in part from a cost-benefit analysis. It notes that there are a couple of classes of people who are simply determined not to pay for content in such situations. Those who have the skill, or who get the information from someone else who has the skill, will work around the paywall easily enough. As long as they're looking at ads, the story says, and maybe clocking an occasional one, then the NYT is still ahead, rather than spending more money to tighten the paywall.

OOPS.

Just one problem with that analysis.

Those same people, in general, are already blocking ads on their computers. I can't believe Nieman was either that dumb or that naive.

And, beyond THAT, the reason WHY for paywalls is to generate revenue not only from falling Internet ad rates, but, because savvy online news readers are already blocking ads, and savvy online newspaper IT staff know that.

That said, from there, we can honestly discuss whether a "straight" paywall, a "freemium" system, or a metered system like that of the NYT is the best thing for a daily newspaper vs. a "weekly" (in hardcopy) magazine, etc.

But, this idea that a fair amount of "leakage" will actually help on the ad side? Stupid.

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