Financial Times questions online business model

Posted by Jean Yves Chainon on February 5, 2007 at 1:11 PM

Most newspapers’ online editions give user free access to their content, relying strictly on advertising to generate online revenue. Among the notable exceptions are The Wall Street Journal and the Financial Times (FT), but the latter is considering reform.

FT.com traditionally provides a limited selection of free full-length articles, and requires a $110 annual subscription for any more in-depth features. These last few days though, FT.com has granted free access to the majority of the website.

Only columns, commentary pieces and some feature stories have remained restricted.

While this type of temporary promotion is a good tool to pull in new subscribers, the FT’s latest open access seems like it’s more of an experiment than a promotion.

It’s part of a project to test "different approaches relating to the access and usage of FT.com," said Lucy Ellison, spokeswoman for the FT.

Just as Nicholas Ascheim, director of entertainment, video and audio at The New York Times, recently questioned the TimesSelect model, the FT could soon revise its online business model.

Newspapers are still struggling to find the most profitable mix of subscription, exclusive features, advertising and free access.

While the FT will probably keep a subscription model, it could widen its selection of free content.

Source: Forbes.com