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With all the recent developments in media consumption on mobile devices, from state of the art e-readers and the sleek iPad to the advent of countless newspaper iPhone apps, it is no wonder technology has taken center stage among news companies.

Mercedes Bunz from Media Guardian spoke to executives from The New York Times and CNN, companies who have built remarkable online presences, about how to keep up with technology companies who usually figure among the biggest sources for news on the Internet.

The "Year of the Paywall" is upon us and in a time where most newspapers seem to be gearing up to build one around their websites - the New York Times and the News Corporation Wapping publications are just a couple of examples - some executives believe there is still room for other revenue models to coexist with paid content.   

The head of digital media at News Corporation, Jonathan Miller, told delegates at the Abu Dhabi Media Summit that "dual revenue streams" are likely to co-exist as media organizations try ways of making money online, according to Guardian.

In Janowo, an 850-person village in north eastern Poland, on a Monday last month, a dozen people - mostly teenagers or over 40s - were gathering in a multi-activity meeting hall. They were listening to Igor Hrywna, a journalist at Gazeta Olsztynska, the dominant newspaper in this "Warmia-Mazury voivodship" (Varmia-Masuria). That day he left his base in the regional capital of Olsztyn to meet this group for the third time in one month. With his assistance, they are learning how to contribute to the recently launched hyperlocal website janowo.wm.pl, covering the 3,000 people "gmina" (commune) centered on Janowo, one of the smallest of the region.

"There are fewer than 120 broadband Internet subscribers today. Our goal by the end of the year is to have at least 6000 unique users", explains Hrywna, who supervises Gazeta Olsztynska's commune portals. "To achieve this, we are organizing two to three hour long training sessions for citizen journalists. I also learn from them!" The training for citizen journalists always begins with the easiest things, like sending pictures with a short description. It includes how to search and browse in the website, how to write, and how to be accurate.

Gazeta Olsztynska's hyperlocal websites like Janowo's are typically 80% filled by local citizens, with user generated content (UGC) mostly on social events. Staff journalists provide the rest, through their assistance and through their own written and edited pieces. "Small communities know what kind of information they need. That is why we base our portals on civil journalism supported by our professional knowledge. The goal is to have the so far marginalized villages really exist in the social cyberspace," comments editor-in-chief Ewa Bartnikowska.

During the Janowo training session, a retired music teacher, Janina Sadowska, who has been a reader of the regional daily for a long time, explained that she was there for two reasons. "First, it is a natural prolongation of my habit of sending readers' comments to the editor. Second, I am at the head of a women's club, and we want to have a presence in our gmina's website."

The young aspiring journalists, between 12 and 18 years old, came from a nearby agricultural school. One of them was filming the reunion with a small camera, planning to post some sequences in the website. Another one, Przemyslaw Ciesielski, 18, explained in clear English: "We don't buy newspapers, but we are interested in news."

For Jarek Tokarczyk, the president of Edytor, Gazeta Olsztynska's publishing house, the involvement of the young in his online projects is critical, because "they already know the Internet, which is accessible at school, even in the most remote villages; through them we can also reach their parents for other publications." Bartnikowska added: "It is very important for us to have roots in print, even though we go at the lowest geographic or smallest community levels only online. This strategy for localism is also only possible if we have social and not only media projects."

Edytor is already managing 35 such hyperlocal websites, as a way to get closer also to small advertisers. In the villages, the biggest companies are often the bakery which employs only eight persons, or the hairdresser with a staff of four. "We want to reach the places where print is not profitable, asking our advertising salespersons to monetize potential markets which have been ignored until now. For this purpose we also train our print representatives to understand the web, setting online revenue goals for each of them," explains Tokarczyk. "We know that the number of Internet users in the country and small towns is going to grow. We have to do it now because tomorrow will be too late." This "deep in localities" strategy is timely with new legislation to be implemented in the coming weeks, for broadband access everywhere in Poland. There are also local governments elections in September, which will boost the interest for hyperlocal news.

Gazeta Olsztynska and its separate edition Dziennik Elblaski, covering an area integrated only ten years ago into the region, have a quasi-monopoly in Varmia-Masuria, one of Poland's 17 voivodships. National daily Gazeta Wyborcza has local editions, but they are read principally in the biggest cities like Olsztyn, where they have a weaker position. In addition to the Internet portals, Edytor controls 21 hyperlocal weekly freesheets, which encompass numerous news areas, social to e-commerce activities. Each has its online version, is available as a supplement of the daily, and corresponds more or less to a county ("powiat").

Janowo, for instance, is attached to the local newsroom based in Nidzica and covering a 35,000 people powiat. Weekly Gazeta Nidzicka's editor-in-chief Jerzy Grala is assisted by four reporters and three sales representatives. The portal nidzica.wm.pl is updated at least twice a day, and links to and sometimes feeds the central newspaper's website gazetaolsztynska.wm.pl. It is enriched by content provided by its communal websites, including janowo.wm.pl, which is updated a few times a week. Grala also posts occasional on his blog grala.wm.pl, which is easily accessible from his newsroom's portal.

There are 25 regional dailies in Poland in total, Edytor being an exception as an independent group. Most others are controlled either by Polskapresse (owned by Germany's Verlagsgruppe Passau) or Media Regionalne (owned by Great Britain's Mecom). The Varmia-Masuria voivodship is one of the less populated, with 1.4 million inhabitants, out of a total population of 38 million in the coutry (plus about 6 millions Poles living abroad). The region has a particularly high unemployment rate, exceeding 19% versus less than 12% on average nationally.

Given this context, Gazeta Olsztynska's intense efforts to develop online activities and "deep localism" are unusual. "We have over 30 equipped multimedia journalists covering the region, who already produce around 600 pieces of different information every month. With the contributions of the mobilized civil journalists, we expect to double within one year the level of 500,000 unique visitors we got last month," explains Bartnikowska.

Edytor is multiplying editorial and marketing projects, both in print and online, including 200 different supplements and freesheets, family service and obituary websites, a schools of excellence campaign (proposing pupils to write about their schools), celebration contests requiring payment via SMS, special publications promoting the natural wonders of the region and its lakes. "The wm.pl suffix that we use online [for "Warmia-Mazury"] is the most important brand here. We want to be a regional Google!" Tokarczyk says.

Another illustration of Edytor's focus on "hyperlocalities" are its Nowe Miasto operations. In this 11000 people town - or large village - about 85 kilometers far from Olsztyn, it publishes weekly Gazeta Nowomiejska, covering a population four times bigger. Its online hyperlocal news endeavours are already one year old, as shown in the "gminas" listed at the bottom of portal nowemiasto.wm.pl. Unlike in Nidzica, the newsroom is not based on a main central square, but its position may be more strategic. Gazeta Nowomiejska is located on a street in front of the church where, for deeply catholic Poland, mass sermons easily hit the headlines and a significant part of social life relates to religious activities. "The priest sometimes promotes our portal during the mass," says chief editor Stanislaw Ulatowski, also a local celebrity as a print journalism veteran.

His deputy, Lukasz Paczkowski, is a young online and multimedia reporter and Internet geek, who manages his blog paczkowski.wm.pl, which is also displayed in the front page of Gazeta Nowomiejska's portal. "We start updating the website before 10 am, when most people open their computer, until 8.30pm", he says. His partnership with Ulatowski also illustrates the complementary cross-promotion between the platforms. "The photo galleries encourage user generated content" comments Paczkowski. "Our online correspondents are very helpful, because our staff cannot be everywhere in the county, and they are more likely to create communes' portals. Then we print the most newsworthy pieces in the weekly."

To extend his team's expertise, Tokarczyk has built a partnership with the promoters of the C3 concept ("Complete Community Connection"), Chuck Peters and Steve Buttry in the United States (the former is the CEO of Iowa's Gazette Communications, and the latter just left this paper to be the director of community engagement at a high-profile, Washington DC based digital start-up). In spite of being based in a remote region of central Europe, Edytor is being very pro-active in looking for ideas directly provided by the world's top experts in its fields of coverage.

Along with the hyperlocal websites, the Gazeta Olsztynska team has also launched numerous thematic portals about students, community centers, and even an "ethnic" group recently. Website ukraincy.wm.pl is dedicated to the 60,000 strong Ukrainian community, made of descendents or survivors of the group displaced by force to this part of Poland in 1947. It is benefitting from and promoting the revival of their language and religion (Greek Orthodox). "Our aim is to have half of the community visit the portal at least once a month by the end of this year. It will be 100% UGC, and fun," says Hrywna, who is also Polish-Ukrainian.

The headquarters of Agora, Poland's biggest media concern, in a southern district of Warsaw, have huge windows as a façade, and inside, terraces on every floor. The whole configuration seems to facilitate contact between the different editorial units housed in this imposing building. They are numerous and varied, from flagship daily Gazeta Wyborcza to freesheet Metro, from talk-news radio Tok FM to countless Internet portals and the administrative departments. Their members or contributors don't need to go to the basement, to the cafeteria, to see people from other platforms or professional cultures. The in-house newsstand and bookstore, which sell not only the group's productions, also remind them they are not alone in the industry.

Agora, which also has a strong presence in magazine, book and DVD publishing, in music-film production and in outdoor advertising, has more than half of its 3,150-odd employees based in this "horizontal skyscraper". The architecture building that is longer than it is tall, with stretching, low wall corridors, may reflect the interaction between separate units. Ironically however, it also contradicts the term "vertical", often heard in this four-storey building and applied to some of the integrated online activities.

"We are in all media platforms except television," says Grzegorz Piechota, the special projects editor for Gazeta Wyborcza, Poland's leading quality newspaper.  "For a decade, we have been particularly active in extending our expertise in Internet, finding synergies between online and print operations. Agora is in everything except porn, instant messaging and mapping!"

The group, whose operations are essentially Polish, counts more than 80 portals (more than Germany's Axel Springer for example, another media titan but at a world level). Agora's main portal gazeta.pl, fed by an independent newsroom integrated with radio Tok FM, is complemented by webradio tuba.fm and many other stand-alone verticals. These cover all sorts of issues, including sport, business, education, recruitment and real-estate. Most of them are leaders in their niche, and their combined audience is sixth right after Google, Polish equivalents of Facebook (nasza-klasa.pl) and E-bay (allegro.pl), and the two leaders onet.pl and Wirtualna Polska. Nearly two thirds of Poland's 17 million Internet users regularly visit gazeta.pl and its affiliated portals. Wyborcza.pl, the flagship daily's e-edition, attracts three million users and brought in  24% of the daily's advertising revenues in 2009.

Agora has been particularly proactive in looking for synergies and complementary activities made possible by the Internet. The group has implemented a multi-brand strategy which is adjusted according to the fields covered. Gazeta Wyborcza, for instance, is fully integrated only in areas that make it more appropriate, with the verticals sport.pl (launched in 2006) or wyborcza.biz (created last year).

This business portal was editorially independent from the daily when it started, in order to be more flexible than print journalists, who were considered "too serious and slow". It was filled with gossips on economic players, which was a mistake, Agora's executives admitted. "It was not the right way to attract a loyal audience. The people we target, let's say graduate readers in their 30s, with minimum 1,000 euros monthly income, have no time and are in search of serious news," explains Leszek Olszanski, the head of wyborcza.pl. "Advertisers also want to reach them through non-trivial material, which is why we work with seasoned print editors. We realized there are complementary abilities between online rapidity on one hand, and thoughtful coverage of an industry on the other."

Thanks to this integration, top economic columnists of Gazeta Wyborcza now write more. They allegedly enjoy having more space for their texts, and having the possibility to work on breaking news in real-time. The portal benefits from the credibility conferred by the paper, which in turn has become more analytical rather than news-driven. "We try to wait for the print edition for exclusivities, if possible. These scoops can be accompanied in the website's pages by teasers before, and follow-ups after," Olszanski notes.

Wyborcza.biz  has become a strong brand, along with its associated portal money.pl. Financial institutions, in particular, compete to be advertised in their pages. This year, the online revenues of the economic section should represent 50% of print earnings. Like the in-house newsstand, the sales forces also market ads for other business sites. It is in Agora's philosophy to tap into all potential income sources - not only news driven - and on the cooperative character of the Internet. "On the Net, you do business with your competitors. There is a business reason to build networks to cover them, and our expertise also includes sales to advertisers," Piechota explained.

Agora does not only play with complementarities rooted on its traditional print activities. The 50-person team managed by Pawel Stremski, as gazeta.pl/Tok FM's chief editor, is half web and half radio. Last January his unit added another website to Agora's e-basket, with the launch of tok-fm.pl, which is not a webradio (a station by the same name, broadcast in Poland's nine main cities, was already accessible on the webradio portal tuba.fm). Agora did not create another website for the sake of it, but saw Tok FM's recognized brand as an opportunity for Internet too. "The same team fills gazeta.pl for a mass market audience, and tok-fm.pl for politics and business with some entertainment content. People can follow a major hearing by a politician live, in a video coverage on tok-fm.pl, and get a summary in the other portals," Stremski says.

The website's beta version was successful in having radio journalists send in their notes, according to its promoters. Conscious of brand impact, these reporters see it as a more dynamic, immediate way to publish their stories. Gazeta Wyborcza's central newsroom is not a tok-fm.pl contributor, but its local editors are. They are based in 20 bureaus out of Warsaw, and can publish their non-print productions in the new portal. They receive no extra pay for these contributions, but they have an incentive: there is an award each month for the best exclusive story.

"We have to be fast, entertaining and multimedia, finding the way to be different," Stremski says. "There is room for good profitable journalism in Internet. By going multimedia, you get more informers, your story is not stuck on page 6, even though the credibility conferred by print remains essential."

Another advantage of creating tok-fm.pl is that in Poland's competitive media environment, newspapers not belonging to Agora are less reluctant to refer to Tok FM as a source, rather than Gazeta Wyborcza. Having many brands gives more possibilities to be quoted for scoops, and to be profitable too. "We cannot expect to make money with every website. A lifestyle or a local news website is more likely to be cost-effective from the start than a general news portal," Stremski notes.

Agora's online operations have gone even more vertical in the past months, with the majority takeover of AdTaily. This start-up company based in Krakow provides a widget-based system for advertising monetization of Internet services (including those offered by the group's platforms which at the moment house about 130,000 bloggers). "AdTaily developed a universal tool that can be used for cooperation with external customers," commented Tomasz Jozefacki, Agora's director of Internet operations. "Currently its system is used by 80% of our online media."

In other words, the group is taking advantage of the blogosphere's innovations and income potentials, including e-commerce for web entrepreneurs who want to monetize their social media. "Agora realized that to be online, you need to acquire the bright guys who are in the business, and can help you to be more efficient in new platforms. Our expertise is not just about gathering news; we have to think wide," Piechota says.

AdTaily is based on the assumption that anybody can be an advertiser. It has developed a self-service ad tool designed for niche blogs, giving advertisers the opportunity to reach narrowly-targeted audiences. Its promoters insist that their system allows 70% of the ad revenues to go directly to the bloggers, with an easy to understand flat fee, unlike Google's  AdSense. "It is a great instrument for hyperlocal news websites, covering towns or districts with around 10,000 residents, where they can advertise the local shoe shops," says Jakub Krzych, one of the start-up's co-founders. "It would not make sense for Agora to buy a website on white boots or on a Krakow district. But through AdTaily, it can indirectly get some revenue streams from very specialized news websites."

Will Agora be successful with its online activism and verticalism? The group is at least trying to be as active as possible in new media platforms, and in a way that is not too costly. The investment in AdTaily also reveals that it does not believe in the online pay walls envisaged by Rupert Murdoch or the New York Times, as most contents are being commoditized. Its multi-brand strategy invites the editorial units to fill the empty spots that appear on the Net. "The publishing business used to be easy!" Piechota joked.

While newspapers struggle to turn a profit from their websites, an encouraging finding from the Columbia Journalism Review has good news for media websites: 60% of larger magazine websites are profitable, MediaGuardian reports.

The survey and report Magazines and Their Web Sites, conducted by Victor Navasky, chairman of the CJR, and Evan Lerner, Editor of SeedMagazine.com, is the first effort of its kind to document and clarify what advantages and strategies 665 consumer magazines utilize on their websites.

The final report revealed that more than half of consumer magazines that receive over 1.5 million visitors per month are more profitable. Advertising, as expected, accounts for the largest revenue source for 83% of the magazines which answered the question.

The Trinity Mirror will not implement a broad paywall strategy on its websites, according to Sly Bailey, chief executive of the newspaper group.

Bailey discussed the group's stance on charging for online access to content with MediaGuardian, confirming there are no plans to install a broad paywall. The group favors charging for more specific online services and products instead.

"We certainly don't believe throwing up a paywall is the right strategy," said Bailey. "It won't be possible for general content, I can't see why people would pay for high quality content when it's free elsewhere...the BBC is an obvious one here."

Newspapers are still the most used and valued local news destinations, and online is no exception, according to a new study from comScore and the Newspaper Association of America. Newspaper Web sites are the "most used and valued sites for consumers seeking credible and trustworthy local content and advertising online," the survey found.

About 57 percent of the more than 3,000 respondents said local newspaper sites are their top online sources for local information - more than the totals for all other media. The percentage is higher for those with a college education (60 percent) and households with higher incomes (63 percent).

For more on this story please see our sister publication www.sfnblog.com

Matt Kelly, director of digital content for Trinity Mirror Group, has led a project to create standalone websites for niche groups of Mirror readers. Mirrorfootball.co.uk's success has been because of its unique offering, and its subsequent appeal to advertisers, Kelly stressed in an interview.




To hear more from Matt about mirrorfootball.co.uk, register here for the WEF Editors Webinar to be held tomorrow, Tuesday 23 February at 2pm GMT.

Journalism Online's e-commerce service for publishers, Press+, has begun to release more details about the online payment system that allows publishers to implement a variety of payment methods for their digital content, according to eMedia Vitals.

Gordon Crovitz, a Journalism Online co-founder and a former publisher of the Wall Street Journal, spoke to eMedia Vitals about the company's progress and about the online payment form that early adopters are leaning towards: a metered, segmented option.

All reporters at the Journal-Register Co. (JRC) will get video cameras, under an ambitious plan to bring the newspaper into the digital age, the company's 3,100 employees have been told. The company's new CEO John Paton has also told staff that they now work for a 'media company', not a 'newspaper company'. Appropriately enough, he announced the news in a seven-minute slideshow, emailed companywide, the New Haven Independent reports.

"We're not looking to make any cuts," Paton told the Independent. "We need to improve [local coverage]. We don't need to make it worse." The company, which runs 19 daily and 150 other newspapers, including the flagship New Haven Register, filed for bankruptcy last February.

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News applications for iPhone have met an undeniable success with French readers, but the task of monetising this through selling content, services and advertising still remains, according to Les Echos.

The director of electronic editions for Libération, Ludovic Blecher, said that the iPhone had revolutionised the consumption of news on mobile platforms. The Libération iPhone app was launched in the autumn, as was that of Le Figaro, and they have been downloaded 400,000 and 600,000 times respectively. "Around 30,000 people open it every day," Blecher said. Figures for Le Monde are even higher: it launched its app in November 2008 and has just reached 1.3 million unique downloads, attracting between 200,000 and 250,000 hits a day.

Australian public broadcaster the ABC has launched a new digital initiative called ABC Open to feature user-generated content on existing ABC local websites.

The initiative aims to develop the digital skills of local communities to tell their own stories. The reports produced through the project will be published on the broadcaster's local websites and other sites, and may also be distributed on radio, television or mobile platforms.

More than 50 editors and producers, based in local radio offices around the country, will be charged with helping communities design and develop media-rich local stories.

The Intelligencer Journal-Lancaster New Era intends to start using Journalism Online's payment system in the next few months, reported the New York Times. The software system will be called Press+ and GlobalPost and the Fayetteville Observer are also interested, said the NYT.

Journalism Online has also sent a memo to its affiliated publishers (reproduced by paidContent) in which it informs them that the company is "just weeks away" from having the technology ready for use, and that multiple publishers are currently integrating the software. 

The Associated Press (AP) and Yahoo have renewed an agreement for AP stories, photos and videos to appear on the Yahoo website, it was widely reported. This is in contrast to the AP's negotiations with Google and Microsoft, which have not yet concluded. New AP content has not been hosted on Google News since December 24.

Neither party has offered details of the agreement, so it is unclear whether they have achieved their financial objectives. The deal had previously been expected to set a higher price for AP's stories and impose tighter restrictions on them.

The AP has previously argued that agreements providing relatively inexpensive access to a broad range of its content only devalue its news offerings. The New York Times reported that the AP was asking news websites for more money, but that aggregators have been arguing that news content is less valuable than it used to be because advertising is down.

The past few years has seen the explosive growth of social networking sites Twitter and Facebook, and a dramatic downturn in advertising revenue that has set about ravaging the newspaper industry. PoynterOnline has now reported new enterprises between the two industries however, which could prove profitable for both.  

Few news outlets are without their own Twitter account these days, using the site's micro-blogging capabilities as a means to distribute stories and attract a wider audience. The Austin American-Statesman is using theirs to sell tweets to local business, which can advertise their enterprises on the newspaper's Twitter account.

The Guardian website has done it again - the newspaper's website has just announced it has achieved its second record-breaking month in a row with nearly 37 million unique users for December, according to its website.

This surpassed its November record by 3.32%, according to figures released today by the Audit Bureau of Circulations Electronic.

Newspaper publisher McClatchy is going to try out charging for content online, Editor and Publisher reports.

Chief Executive Gary Pruitt said that McClatchy will trial a pay model on one of its newspaper websites, suggesting that a number of articles could be available for free before the reader hits a paywall.

The Amaury group, responsible for both Le Parisien and L'Equipe, has given its publications a face life this week, with all 48 pages of the former appearing in colour for the first time on Tuesday, and divided into five new sections: Fact of the day, News, Local News, Sports and Leisure.

L'Equipe is set to integrate three new pages into its design, the first appearing today, the second in Thursday's edition and the third in Friday's, as a response to reader surveys. From March the publication will introduce a motoring section, which will appear every Monday- intended to deal with the production of cars as opposed to buying and selling.

A new non-profit news website has launched in Connecticut today, Poynter Online reports, with the dual aims of reporting the news and providing its readers access to resources that are hard to find online.

The Connecticut Mirror bills itself as "an independent source of news and information about our state's government, politics and public policy". It comes in time for an important state budget and an election year.

Editor Michael Regan writes that the Guide to Politics and Government his site offers provides "the most comprehensive information available any where on the state's elected officials".

The Financial Times (FT) will launch a new mobile app for Blackberry in the first half of this year, and an app for Android is in the works, managing director of FT.com Rob Grimshaw told Journalism.co.uk.

The FT recently launched a series of travel guide iPhone apps. And the paper already has an iPhone app, which has been downloaded 200,000 times, but has rejected charging for the app. "The fact is you only get one hit from that and then after that the revenue stream dries up," Grimshaw said. "We thought it would be much more sensible and favourable to make it part of the subscription model."

The subscription model has been successful for the paper, which now makes more from content revenue than from advertising.

New York Times executives Janet L. Robinson, president and chief executive of the company, and Martin A. Nisenholtz, senior vice president for digital operations, have answered readers' questions about the upcoming paywall. It was announced on Wednesday that the US's premier general-interest paper was to launch a metered payment system in early 2011.

The paper seems to be taking the crucial issue of ease of use seriously, with the executives stressing that "we are determined to make subscribing as smooth and easy as possible" and they hope that the infrastructure of NYTimes.com will "provide our Web users with an uncomplicated, frictionless experience."

The BBC will not try to compete with local publishers, according to director of BBC news Helen Boaden, MediaWeek reported.
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Speaking at the Oxford Media Convention, Boaden said that BBC websites would not become more localised in the future.

Yesterday, following months of deliberation, the New York Times announced that it was to go forward with charging online, with a plan to implement a metre system in 2011. It is the biggest publisher yet to lay out paywall plans, and the move is undoubtedly highly significant for the newspaper industry as it struggles with a failing business model. Will this save the New York Times? Could it signal the end for free online content?

Similar to that used by the Financial Times, a metered payment system would allow readers to access a certain number of articles free per month, and then request payment for more: a flat fee for unlimited access. Print subscribers will continue to have free access, even those who subscribe to just the Sunday paper. An online subscription will also cover access via smartphones. The first click free from search engines, which is used by the Wall Street Journal, will also apply. More details such as pricing have been released yet, and the publisher's statement said that the next year will be used to build "a new online infrastructure designed to provide consumers with a frictionless experience across multiple platforms."

A metered system rather than a more fixed paywall has the advantage of not alienating the casual reader who can still visit the site free on occasion, and not angering journalists by blocking off specific articles (an issue with the Times' previous attempt at charging online, TimesSelect). "It allows NYTimes.com to remain a vibrant part of the search-driven Web," reads the Times memo sent to staff by executives Arthur Sulzberger and Janet Robinson, published by Poynter.

It does have potential flaws, however. Before the NYT's announcement, Reuters writer Felix Salmon criticized the way that the FT's flat fee system does not actually work like a metre: suggesting that instead the New York Times should implement a payment process under which readers are charged depending on how much content they consume. And presumably those who are determined not to pay will find ways around the paywall, using multiple accounts, for example.

The Financial Times welcomed the New York Times' decision, according to the Guardian, with CEO John Ridding saying "We welcome the New York Times' new online business model, which is similar to the FT's. We believe in the value of quality journalism and we are pleased that others feel the same way." The FT recently announced that for the first time, its content revenue was greater than its advertising revenue in 2009, after raised cover prices and more online subscribers signing on.

The FT now has 121,000 subscribers. Going by the pricing on the FT's website, it seems that they pay between €186 and €363 per year (depending on whether they choose a standard or premium subscription). Working on the assumption that about half of subscribers pay for each (and that the FT is not counting joint print-online subscribers in this figure), that would mean that the paper could be bringing in something in the region of €33 million from its paywall in direct revenue from readers. And the Wall Street Journal, which offers a different kind of paywall, has an estimated one million paying online subscribers.

This figure is encouragingly high, but how much encouragement can the NYT take from this? As a general interest paper with the most popular website out of all US papers, the Times has a far bigger pool of potential subscribers. But the FT's specialist financial content is something that more people might see as worth paying for. Indeed for some, it is news that is necessary for their business. And with the FT's main international rival the WSJ also charging, there is not an ubiquity of similar news free on the web.

The New York Times does seem to have a better shot at making charging for online content work than other US general interest newspapers. Its status as the number one national paper is largely unquestioned. It has always made a greater proportion of its revenue from content than most newspapers do, receiving 55-60% of its income from advertising compared to a typical figure of 80-85%. The current price for a print subscription is high, at between $550 and $770 a year, depending on location and offers, but many people are still prepared to pay this: more than 800,000 continue to renew their subscriptions, according to the NYT's David Carr.

Given the paper's financial situation, it is unsurprisingly that the paper is looking at changing its business model. Despite its reputation and high number of website visitors, financial constraints have pushed the New York Times into carrying out lay-offs and pay cuts. Mexican billionaire Carlos Slim came to the publisher's aid last year with a $250 million loan, but if the paper is to continue to produce top-quality journalism, it needs a steady revenue stream.

Poynter writer Rick Edmonds maintains that the NYT's decision to charge "makes business sense." He believes that the Times will not "lose any meaningful number of unique visitors," and agrees with Ken Doctor that paying users represent a significant targeting advertising opportunity. The Times' memo sent to employees said that executives expect that "digital advertising will continue to be the major contributor to our success on the Web."

Slate editor Jack Shafter is critical of the NYT's strategy, judging it "too easy for freeloaders to game their way around it" and "a waste of the gargantuan audience they've attracted." He suggests that looking into improving web advertising would be a better way to go forward. Jeff Jarvis argues on his blog BuzzMachine that the NYT's plan will end up charging "the readers who are worth the most while serving free those who are worth least," which he believes does not make sense. 

With the New York Times on board, efforts to charge online are likely to speed up. Rupert Murdoch's News Corp publications are expected to introduce paid online content in coming months, and there is an increasing sentiment that it just doesn't make sense to give away content that should be seen as valuable. Not everybody agrees, however, and over at the UK paper with the most popular website, Guardian editor Alan Rusbridger has said that his publication will remain free online. Others will undoubtedly stick to a similar course and provide free alternatives, making it harder for those who do charge. Which business model will eventually prove more successful? 

On January 12 last year GlobalPost was launched, a new international news service focused on getting the context behind the headlines, hoping to combat diminishing foreign reporting in the US. Its number of foreign correspondents is second only to the Associated Press and they are expected to provide both text and visual reports.

A year on, and the news outlet has made considerable progress in terms of covering a wide range of international stories, establishing a significant audience, and implementing a successful business model. The Editors Weblog spoke to President, CEO and co-founder Philip Balboni about his first year at the helm of this project.

Balboni was clear that he considered GlobalPost's first year a success. "It has been an extraordinary year, it has exceeded any reasonable expectations that I could have had when I started out on this journey," he said.

"To a large degree, the stories on GlobalPost are ones that you would be unlikely to find elsewhere," said Balboni. As one of GlobalPost's aims was to fill the gaps in the reporting of traditional outlets, this must be satisfying.  The news outlet has also remained true to its original stipulations: its reporting has broad geographic diversity, and consists of a wide range of types of stories and topics.

And much of this reporting has had the potential for considerable impact. Balboni highlighted a recent story on how the Taliban have been taking a cut of funds supplied by the Indiana National Guard to local Afghan contractors for development projects in Afghanistan's Khost province. The issue of the Taliban skimming American aid in Afghanistan is one to which GlobalPost has dedicated much coverage over the past few months.

Such investigative pieces are accompanied by more entertaining reporting, such as an article from Paris about how the French are rediscovering the joy of wearing berets. Correspondents also write ample blog entries.

GlobalPost adopted a relatively unique correspondent model, hiring country-based, part-time reporters who could produce one article a week. The compensation level - a monthly salary plus shares - has proven "very successful" and working for GlobalPost seems to be a popular job: the news service now has correspondents in more than fifty countries and "we have far more people who would want to work for us than we could possibly hire."

The correspondents work with regional editors based in Boston and Balboni said that so far this system has been functioning "with a remarkable degree of smoothness."

Building an audience from scratch

Developing an audience is "really more important than anything else," said Balboni. "We could have the most spectacular content in the world but if you can't build an audience for it then you can't succeed, right?"

The news outlet's highest-traffic month this year was November, when more than 750,000 people visited the site. This exceeded Balboni's goal of 600,000, set before the launch. In addition, "we are retaining more than 50% of all the visitors," he said.

The target for 2010 is to top one million unique visitors, and Balboni mentioned the company's "very sophisticated marketing strategy" aimed at audience building.

Prize partnerships

Building a brand on the web with no support from legacy media has been a considerable challenge, and GlobalPost's partnerships with other high profile brands have been very helpful in doing this, and "particularly important in the validation of GlobalPost as a brand," Balboni said. Such partnerships have helped present the outlet's content as authoritative, and often "raising our visibility is more important than any compensation we might achieve." From the beginning, GlobalPost has sought to present itself as a complement rather than a competitor to newswires and newspapers.

The partnership formed with CBS in September, for example, is a syndication deal, with CBS paying GlobalPost for help with foreign reporting. But having a broadcast news partner was also something that Balboni and his team considered a high priority in terms of brand-boosting, and such a deal "certainly goes beyond" purely syndication. He sees the recent partnership with PBS NewsHour as a "significant achievement" and mentioned that GlobalPost has upped its video production so that it might have the chance to forge other broadcast partnership. 

Compensation is obviously an important consideration, however, and syndication is one of GlobalPost's major revenue streams, the other two being advertising and subscriptions. Currently, advertising comprises about 70% of GlobalPost's income, but Balboni hopes that over time this share will fall to around 50%, with syndication and membership rising to make up the other half.

Passport to premium services

The most unusual of these revenue streams is the subscription, or membership, scheme called Passport. For $99 a year (discounted to $50 for students, academics or seniors), readers can have access to conference calls with GlobalPost reporters, the chance to suggest stories, global and country briefs and newsletters. There is also the option to commission custom research projects, something Balboni said he was "very excited about." One client, for example, has ordered a series of ten reports for the coming year. "It takes careful shepherding but it's very interesting and I think it could scale up to be a meaningful part of our Passport financial strategy," he said.

"I am very bullish on the membership aspect," Balboni said, "I think it's the hardest one but if you want to point to one thing that could be a potential salvation for quality journalism then it's that." He always wanted to encourage a subscription or membership scheme, but explained that as a new little-known media brand it would have been foolish to put up a paywall immediately.
 
Passport does not offer pure paid online content, rather additional editorial services. "My hope and my expectation is that GlobalPost will remain free and open to all but we need to find more effective ways to get all of the people who are most engaged to help support our mission," he said, specifying that GlobalPost was likely to continue to ask for, rather than to require, reader contributions. He does think, however, that it would be "entirely fair" for a news organisation to demand payment.

So far, Passport has 450 - 500 members: "just not enough," according to Balboni. He hopes to increase this by making "a strategic shift in how we market our membership" and by using some new technology starting this spring that will help the membership base and subsequent revenue to grow. Currently, visitors to the GlobalPost site can read about Passport but there is no chance to test it out first and they have to "take a leap of faith" if they want to subscribe, Balboni said.

From a purely financial standpoint, 2009 was "a decent year," especially given the global economic recession. Balboni specified that the $1 million revenue figure that was reported in November was not accurate, but described the amount as "consequential." The company's original business plan projected profitability in 2012, and Balboni thinks this is still likely.

What's next?

GlobalPost seems to have demonstrated that there is an audience for more international news and has set up a structure to cover this that works. As Balboni explained, its challenges now are to build that audience into the millions and (like almost every other news organisation) to shift its business model so that it depends less substantially on advertising.