Will Millennials Pay For News?

By Kevin Koczwara: “Kevin Koczwara is a freelance journalist and blogger. Currently he writes two blogs and pays for his writing efforts by substitute teaching during the day time. He graduated in May of 2009 from The University of Massachusetts Amherst with a degree in journalism. While at UMass he was an editor for the daily student run newspaper, The Daily Collegian. He is a movie lover, news junkie, self-proclaimed nerd and soccer enthusiasts. He is currently working on a novel (but aren’t we all?) and if he isn’t writing or reading you can find him on the soccer field.”

The New York Times announced yesterday that they would begin charging for online content in 2011. The Times will allow each reader a set number of reads on nytimes.com per month. When a reader reaches their limit they will have to pay a flat rate price. The Times is calling this method of charging its readers a “metered system.” No worry for subscribers to the paper, they don’t have to pay the online fee.

This is a major breakthrough in the struggling world of newspapers. Newspapers are on edge as they adapt to create revenue from the Internet and maintain readers. Editors have been searching for a new model to bring in revenue but have been shy about changing the model because no one has taken the first step and lead the way, so far.

The New York Times has been a world-wide leader in news and reporting and now it is trying to set the industry standards on the Internet.

The Times Corporation is trying to recoup the company’s losses in ad revenue by charging for content online because the company just isn’t making enough money to keep all their news sources up and running.

Janet L. Robinson, president and CEO of the New York Times Company, commented on the restructuring of their online content by saying in the company’s press release that the “process of rethinking our business model has also been driven by our desire to achieve additional revenue diversity that will make us less susceptible to the inevitable economic cycles.”

The New York Times was the most read newspaper online in 2008 and probably was the most read in 2009. Now the newspaper is trying to become a trendsetter in the world of Internet newspapers. They are trying to be the first to start charging their readership for online content that was once free. The Wall Street Journal has been charging for a long time now and it works for them. But The Wall Street Journal has a very specific readership, a niche market (a very large niche) that is willing to pay for their news—after all it is news that regards their money most of the time.

The New York Times has taken the first step in this trial and error process of charging readers for something that was once free, but will it work?  And what are some things they should take into consideration?

How Will The Millennial Generation Take to This New Model?

As a personal “news junkie” I see this new model being a struggle. But our generation and the next one to come will have to learn that everything isn’t free. We are the generation that has created ways around paying for things and I am sure people will find ways around The New York Times payment method. But with all of the Internet watchdogs out there, will we want to spend the time to create a loophole around this system? Will it be in our best interest to defeat the New York Times?

I don’t think so. We need news and information in our lives. Newspapers are struggling right now and need to find a new model and we need them too figure this out quickly.. We need The Times, The Wall Street Journal, The Washington Post and other newspapers alive and well—breaking open stories and scandals. And the best way for them to survive is by us paying for their news.   Newspapers can’t afford to pay top-level journalists and editors if they keep giving away their news for free. And we can only accept the best when it comes to our news.

If no one else adopts The New York Times model of paying for news, then Generation Y will find other places to get news from, just as it finds ways to get free music and movies, no matter how many roadblocks exist. But if the model sticks and other important news operations go the same route, then we will have to adapt, to finally start paying for what we want. We won’t like this. We will find ways around the roadblocks, but in the end we will have to pay for our news and information.

Maybe this will change the types of news we seek out. Instead of following sensational stories like the “Tiger Zoo” (term coined by Bill Simmons) we will have to follow politics, the economy and wars overseas.

In the end, we will have to start paying for our news and with that comes more responsibility and better judgment on what we are willing to pay for.

Kevin Koczwara can be reached at kkoczwar@gmail.com.

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