US: Wall Street Journal plans on keeping subscriptions and adding free coverage

Posted by Carolyn Lo on March 13, 2008 at 4:06 PM

Gordon McLeod, Chief Executive and President of the Wall Street Journal Digital Network, affirms that WSJ.com will continue its subscription model instead of an ad-funded online model due to the apparent recession in the United States' economy.

McLeod is concerned that WSJ.com would not be able to survive on revenue from display ads alone, especially since they would need a 12-fold traffic growth if they go completely free in order to compensate its subscription revenue losses. However, McLeod wants to gain a wider audience by offering some free content and increasing coverage on politics and sports.

"We are happy to exchange control for growth," he said. "We have evolved so far from a single pay website. There is a bigger resurgence now [by traditional media companies] catching up to technology companies. What is happening now is the old guys... Have realized the value in brand and are working out how to get it out here."

Source: Guardian.co.uk