Tumblelog by Soup.io
Newer posts are loading.
You are at the newest post.
Click here to check if anything new just came in.

January 13 2012

16:30

January 10 2012

14:00

Piano Media wants national paywalls all over Europe

Liptov, Slovakia

The expansion of Bratislava-based Piano Media into Slovenia is just the beginning of the company’s efforts to bring national paywalls to five European countries by year’s end.

Eight Slovene media outlets have agreed to unite behind a single paywall starting Jan. 16. It’s the cable TV model: Pay a flat monthly fee for unlimited access to everything inside. I caught up with Piano CEO Tomas Bella to hear how it’s going in Slovakia, where the experiment began seven months ago. He’s not yet willing to share subscriber numbers, but he did share observations — mainly, that Slovak readers are not much different from those in the United States or elsewhere.

He said there are different types of readers. The first group “will sign up no matter what you do,” he said. “They just do it in the first week or first weeks. The price can be almost any price. They will pay, and they will pay for a year.” These are people who trust traditional media institutions and are willing to pay to help them survive.

As for everyone else, the barriers to subscribing range from inertia — some people need lots of naggy “here’s what you’re missing” emails — to philosophical opposition. “People were saying, in principle, I will never pay because the Internet should be free,” Bella said. He said he had expected a strong correlation between socioeconomic status and willingness to subscribe, but the divide turned out to be philosophical.

“The number of subscribers is still going up as more and more people are telling us that they were against the concept at first but now they got used to the idea and already feel comfortable with paying,” he said. “Last week I saw one post on Facebook that literally said: ‘You know what, I have woken up one day and realized that I do not know why I was against Piano all the time, and I have paid.’”

For Bella, a former newspaper editor who has tried and failed to get paywalls off the ground, that’s more satisfying than making money. He is out to reset the way people think about the value of news. He said the subscriber numbers were “not so big” at first but that the Slovak paywall generated €40,000 in its first month.

The biggest mistake, Bella said, was trying to charge users for comments. Five of the Slovak publishers wanted a way — any way — to help manage the daily deluge of comments on news articles. But citizens of a former Communist regime don’t want their free speech impinged upon. “This was a very special central European problem,” Bella said. In Slovenia, the paywall will only cover text and video at launch; publishers will be able to add in more kinds of content down the road.

The price for the Slovene package is just under €5 a month, a couple of euros more than in Slovakia. Piano’s market research found that was the most that most Slovenes are willing to pay for news, Bella said.

“It’s still, of course, not as much as publishers would like to have, and it’s still not, I would say, a finite price. But they understood that we need to start at some level of — look at it from the point of view of the reader, not from the point of view of how much the content costs. The research was really very strong. It said that if we go any higher, then we are losing money.”

Pricing for the Slovak paywall, at €2.90 per month, was based more on intuition than research, he said.

The subscription model in Slovenia remains the same: 40 percent of the proceeds goes to the media organization that initially captured the subscriber, 30 percent is distributed to all partners based on how much time the reader spends on their respective sites, the reader’s time spent on their respective sites. So if I sign up for Piano’s paywall at the website of Delo, Slovenia’s national broadsheet, and I spend most of my time at Delo’s website, most of my money goes to Delo. (Tracking time on site has proved to be the most complicated technical challenge, Bella said. That and going after users who avoid the paywall by creating multiple free trials.)

Bella said he hopes to sign up 1 percent of the Slovene population, or about 20,000 people. He said he expects to announce two or three new deals with publishers in Slovakia later this month.

Photo of Liptov, Slovakia by Martin Sojka used under a Creative Commons license.

January 09 2012

14:00

Slovakia’s national ‘pay curtain’ expands to Slovenia

Piano Media, the company that introduced a unified paywall for all major media in Slovakia last year, is expanding to Slovenia.

Nine Slovene publishers and 11 online media sites are participating — a group that includes nearly all of the nation’s major daily newspapers, a car magazine, a sports daily, two regional publications, and even a free city newspaper. A subscription to all of the content will cost €4.89 ($6.21) per month, one euro more expensive than the package in Slovakia. Users can opt to pay weekly (€1.99) or yearly (€48.90), but that’s as complex as the pricing gets.

Publishers get to choose what content goes behind the paywall and what remains free. They can also elect to make users pay for premium features, such as commenting, access to archives, or ad-free browsing.

The Slovak paywall generated more than €40,000 in its debut month of May 2011, the company said, which was split with publishers 70/30, Apple-style. We playfully dubbed it “the new Iron Curtain” — and the metaphor seems to hold up now, as Piano expects to reach three more European markets by year’s end. The company says it is negotiating with publishers in 11 countries.

Like Slovakia, Slovenia is a relatively small, monolingual country. The company estimates 1.3 million Slovenes, or 65 percent of the population, are online; about half of those read news on the web. And while the Slovene package includes more publishers than in Slovakia (20 vs. 9), it will be interesting to see how a national paywall might work in much larger European countries with more media choices. Would the non-participating media siphon users who don’t want to pay?

When we talked last year, Piano CEO Tomas Bella told me he hoped to change the attitudes of consumers accustomed to years of free riding. The company offered the simplicity of a single login and a single monthly bill. As he told me then: “We don’t think it’s a problem of people refusing to pay — we don’t think it’s a problem of money. It’s a problem of convenience.”

Photo of Slovenia’s Julian Alps by Christian Mehlführer used under a Creative Commons license.

February 11 2011

09:49

Matjaž Medvešek introduction CGS 2011

I am Project Coordinator of  Zavod MISSS affiliated member of TSGN as TechSoup Slovenia.  My professional/personal priorities are: developing our NGO as a social enterprise organisation, networking and support to NGOs,  but also as trainer of youth workers, youth work, counselling. Last few months I work on added value to our regular TSG activities such as atracting new donors for a small market and encourage NGOs  for actively approach to forthcoming social entrepreneurship.


 


 


Zavod MISSS


Contact: Matjaž Medvešek


e-mail: matjaz@misss.org


http://www.misss.si;


 

Older posts are this way If this message doesn't go away, click anywhere on the page to continue loading posts.
Could not load more posts
Maybe Soup is currently being updated? I'll try again automatically in a few seconds...
Just a second, loading more posts...
You've reached the end.

Don't be the product, buy the product!

Schweinderl