Half of UK and US readers would pay for online news

by Daniel Farey-Jones, Brand Republic 17-Nov-09, 08:00

LONDON - The latest survey of consumers' attitudes to paying for online content shows that 48% of people in the UK would pay for news online and on mobile devices.

Boston Consulting Group surveyed 5,000 people in the UK, the US, Australia, France, Germany, Italy, Norway and Finland via Research Now's online research service.

The figure is markedly higher than a previous survey by PaidContent UK, in which just 5% of readers said they would pay to continue reading when asked "What would you do if your favourite news site began charging?".

The BCG survey asked "How much per month are you willing to pay to get online news on your PC or mobile?", including zero as one option in the multiple choice answer.

It revealed differences between the UK and US, where 48% would pay, and the Western European countries, where more than 60% would pay.

Amounts people in each country would pay ranged from $3 for the US and Australia, $4 (£2.40) for the UK up to $7 for Italy. The upper limit that UK consumers were prepared to pay was $9 (£5.40).

The two types of news services people were most interested in were local or community specific news and news archives.

Print media owners around the world are considering whether and how to charge readers to access their online content, with the issue becoming more urgent as advertising revenues decline and an increasing number of their peers erect or extend paywalls.

The Spectator and The Economist are among the UK weeklies to have moved in this direction.

In the newspaper world, all eyes are on the progress of Rupert Murdoch's stated aim to charge for all online news content.

But according to the survey there is unlikely to be a pot of gold at the end of the paid online news rainbow.

BCG estimates that were the US newspaper industry to be successful in charging, it would have a "negligible effect" on revenues, though it would raise 2010 operating profits from £3.9bn to £4.6bn.