Reuters blogger Felix Salmon argues that The Financial Times‘ strategy of charging for Web access while practically giving away its print paper isn’t working — the paper continues to lose print subscribers and its unique visitors online aren’t growing as fast as others.
Salmon writes, “The FT’s paywall is structured very aggressively — you have to register after reading just one article per month, and then unless you subscribe you’re cut off after 10 articles per month. That’s good at maximizing short-term cashflow, but it clearly hurts growth: the FT doesn’t release numbers for unique visitors, but both Quantcast and Compete show FT uniques falling significantly over the past year, and actually being overtaken by Business Insider. What I said back in 2007 was that the FT was removing itself from the conversation; that’s exactly what seems to have happened.
“I don’t doubt for a minute that the FT’s CPMs are very high. But they’re getting there the wrong way, by minimizing the Ms (the number of pageviews) rather than maximizing the Cs (total ad revenues). Eventually, the FT is going to be such a niche product, compared to other business and finance publications, that global B2B advertisers simply won’t see the point in buying it any more. What it should be doing is becoming so big and important outside the UK that major advertisers feel the need to buy it even if they have no desire at all to reach the UK audience. But it’s nowhere near that point yet, and it doesn’t seem to be getting there, either.
“And if the FT isn’t serving advertisers well, it’s not doing so well for readers, either. Paywalls should always be completely invisible to subscribers, but the FT’s fails miserably on that front: subscribers keep on running into that wall on a regular basis, especially when they try to visit ft.com from their mobile device, or when they try to follow a link sent to them by a non-subscriber.”
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