David kaplan, Paid content.org
As online advertising revenues are expected to slow to little more than a trickle this year, Hearst is the latest newspaper company trying to figure out how much of its content it can put behind a pay wall. Earlier this week during the Q4 earnings call, a Cablevision (NYSE: CVC) exec touched on plans to make Long Island’s Newsday.com a complement to its pay TV services, while a few weeks ago, NYT mused in a Q&A with readers that the paper would try to find a way to charge readers for more of its online content.
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Inescapable conclusions: A memo obtained by WSJ and attributed to Steven Swartz, the president of Hearst newspapers, lays out the issues confronting the company: “One inescapable conclusion of our study is that our cost base is significantly out of line with the revenue available in our business today. It is equally inescapable that during good times our industry developed business practices that were at best inefficient.