A new memo from Steven Swartz, the president of Hearst Newspapers, outlines some significant changes in store for the chain. For one, it's going to start charging for some Web content --- although it seems local management will determine where to draw the line between free and premium material.

There is a belief that this firewall will effectively drive up ad rates. Lower traffic will mean fewer available spots for advertising, which in turn will create some scarcity, which should yield more demand and better fees.

Hearst plans to increase its Web staffing, offer self-serve advertising for small businesses, provide access to third-party printing and ad platforms, and develop electronic readers for its content.

Swartz's memo to staff comes in the middle of the chain's 100-day initiative to rework its operations.  Earlier this week, Cablevision announced that its subsidiary Newsday would be discontinuing its free service online and shifting its content into a local news site under its cable operation for subscribers.

 


Comments

Groo

Sat, 28 Feb 2009 14:48:59

Only part of that that isn't insano is the expanding of web staff and offering self-serve ads... though both of those should have been happening years ago. Rather than reducing traffic to create ad scarcity, they should increase it, and make primo spots more expensive - thereby bringing in every possible cent.

 

Kirk LaPointe

Sat, 28 Feb 2009 17:31:24

It's counterintuitive to believe scarcity can be created this way and revenue can increase. It'll be interesting to watch.

 



Leave a Reply

DA25E68FDEC14EAFA7B2A27D26C48058