Japan's The Nikkei prepares to erect paywall

Posted by Maria Conde on March 18, 2010 at 1:41 PM

Nikkei Inc., the Japanese newspaper publisher of Japan's five largest newspapers, has announced it will launch a paid digital edition for its business daily, the Nihon Keizai Shimbun (known as The Nikkei), on March 23.

Access to the publisher's previous newspaper website, Nikkei Net was free of charge. However, after March 23, access to part of the content of the new website will be limited to paid subscribers only, The Asahi Shimbun reports.

Nikkei President Tsuneo Kita said in a news conference that the company is approaching "this project from a different concept than the conventional perception that information on the Net is free of charge."

The Japanese publisher, which also owns TV Tokyo and Nikkei CNBC, is hoping 300,000 users will sign up for the digital edition of The Nikkei within the first weeks of its launch. This newspaper already has one of the largest circulations in the world, with over 3,000,000 copies daily.

The monthly subscription will cost 4,000 yen or $44.30. For those who already have a print subscription, the digital edition will cost 1,000 yen.

Kita also revealed at the news conference that he believed it is unrealistic to expect any further growth in print newspapers, according to information on the Japan Newspaper Publishers & Editors Association's website. Kita also added that it has now become "indispensable for newspapers to generate new revenues in the digital business field," and that this electronic newspaper will help generate revenue alongside print newspapers.

Japanese newspapers have been experiencing the same difficulties their western counterparts have in the last couple of years. Three large Japanese newspapers dropped their evening editions in the last year, and just last month, The Kitanippon Shimbun stopped printing its evening edition.

Nikkei Inc. joins a host of newspaper publishers making the move towards paid content this year. Rupert Murdoch has promised to erect a paywall around most of his News Corp newspapers, including his Wapping-based newspapers, by this summer. The New York Times announced early this year that it would be making its online content available for a fee starting in 2011.

While some newspapers struggle behind paywalls, financial newspapers have had better luck with erecting paywalls. It is quite possible that The Nikkei, just as the Financial Times, will have an easier time luring its customers to pay up for a digital edition for the audience they target -- mostly investors, bankers, brokers, and all of those with an interest in finance -- are more willing to pay for their content.

Sources: The Asahi Shimbun, Japan Newspaper Publishers & Editors Association, Mondo Times, Nikkei Inc.