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| Version 2 | Version 3 |
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| News UK chief backs digital paywalls | News UK chief backs digital paywalls |
| (3 months later) | |
| Mike Darcey, the chief executive of Rupert Murdoch's UK publishing operation, believes free websites may get more readers than those behind a digital paywall, but says they do not generate meaningful revenue– and that focusing on building a mountain of users is "only good for the ego". | Mike Darcey, the chief executive of Rupert Murdoch's UK publishing operation, believes free websites may get more readers than those behind a digital paywall, but says they do not generate meaningful revenue– and that focusing on building a mountain of users is "only good for the ego". |
| The head of News UK, the freshly rebranded name for News International, said that giving digital content away free undermines a print business which is still by far and away the engine room of revenues and profits. | The head of News UK, the freshly rebranded name for News International, said that giving digital content away free undermines a print business which is still by far and away the engine room of revenues and profits. |
| "Some people have argued that the problem with a paywall strategy is that you lose reach, while others who maintain a free web presence continue to enjoy large numbers of unique users and page views," he said, speaking at The Times CEO summit at the Institute of Directors on Tuesday. | "Some people have argued that the problem with a paywall strategy is that you lose reach, while others who maintain a free web presence continue to enjoy large numbers of unique users and page views," he said, speaking at The Times CEO summit at the Institute of Directors on Tuesday. |
| "This reach doesn't generate any meaningful revenue, and the pursuit of it undermines the piece of the business that does make money. If your purpose contemplates still being here in five to 10 years' time, then the choice seems clear. It is better to sacrifice reach and preserve sustainable profitability." | "This reach doesn't generate any meaningful revenue, and the pursuit of it undermines the piece of the business that does make money. If your purpose contemplates still being here in five to 10 years' time, then the choice seems clear. It is better to sacrifice reach and preserve sustainable profitability." |
| He said the problem with readers on free news websites is they "flit" and are not as engaged as paying subscribers. | He said the problem with readers on free news websites is they "flit" and are not as engaged as paying subscribers. |
| "When we sacrifice this so-called reach, what have we really lost?" he asked. "A long trail of passing trade, many from overseas, many popping in for only one article, referred by Google or a social media link, not even aware they are on a Times or a Sun website, wholly anonymous. That passing trade was good for the ego, if unique user stats do that for you, but they don't really add to our purpose at all." | "When we sacrifice this so-called reach, what have we really lost?" he asked. "A long trail of passing trade, many from overseas, many popping in for only one article, referred by Google or a social media link, not even aware they are on a Times or a Sun website, wholly anonymous. That passing trade was good for the ego, if unique user stats do that for you, but they don't really add to our purpose at all." |
| Darcey, speaking a day after Murdoch's media empire officially split into separately listed publishing and TV and film businesses, said the paywall strategy for the Times, Sunday Times and soon the Sun will pay off by delivering engaged users. | Darcey, speaking a day after Murdoch's media empire officially split into separately listed publishing and TV and film businesses, said the paywall strategy for the Times, Sunday Times and soon the Sun will pay off by delivering engaged users. |
| He argued that the key insight was looking at total paid sales. The Times has 140,000 digital paid-for subscribers, mainly on tablet, and 395,000 print buyers, a total of just under 535,000 paid subscribers. | He argued that the key insight was looking at total paid sales. The Times has 140,000 digital paid-for subscribers, mainly on tablet, and 395,000 print buyers, a total of just under 535,000 paid subscribers. |
| "The key insight comes from looking at total paid sales, the sum of casual print, plus print subscribers, plus digital subscribers," he said. "And on this basis the Times is ahead of 2010, and there are very few titles that can boast that record in recent years." | "The key insight comes from looking at total paid sales, the sum of casual print, plus print subscribers, plus digital subscribers," he said. "And on this basis the Times is ahead of 2010, and there are very few titles that can boast that record in recent years." |
| According to official figures, December 2010 print circulation for the Times stood at 448,463 and the digital subscriber numbers were 57,000, meaning the Times had a total paid subscription of 505,000. | According to official figures, December 2010 print circulation for the Times stood at 448,463 and the digital subscriber numbers were 57,000, meaning the Times had a total paid subscription of 505,000. |
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