At Techdirt, Mike Masnick uses small, easily understood words to explain why your local newspaper is cutting its own financial throat by implementing a paywall:
For many years, while some journalists (and newspaper execs) have been insisting that a paywall is “the answer” for the declining news business, we’ve been pointing out how fundamentally stupid paywalls are for the news. Without going into all of the arguments again, the short version is this: the business of newspapers has never really been “the news business” (no matter how much they insist otherwise). It’s always been the community and attention business. And in the past they were able to command such attention and build a community around news because they didn’t have much competition. But the competitive landscape for community and attention has changed (massively) thanks to the internet. And putting up a paywall makes it worse. In most cases, it’s limiting the ability of these newspapers to build communities or get attention, and actively pushing people away.
And, yes, sure, people will point to the NY Times, the Wall Street Journal and the Financial Times as proof that “paywalls work.” But earth to basically every other publication: you’re not one of those publications. The paywalls there only work because of the unique content they have, and even then they don’t work as well as most people think.
Not surprisingly, more and more newspapers that bet on paywalls are discovering that they don’t really work that well and were a waste of time and effort — and may have driven away even more readers.
In my case, I look at various newspapers for links to share with my tiny audience of regular readers. Once upon a time, I’d frequently link to the two big Minnesota newspapers, the Minneapolis Star Tribune and the St. Paul Pioneer Press, mostly because I was reading their sports pages for information about my favourite football team, but fairly often when they carried other news of interest, I’d share the link with my readers. When the Star Tribune implemented a paywall, I pretty much stopped going there (they allow 10 free articles per month, and even if I only read the odd Jim Souhan column, I’d already be beyond my limit). Given the thriving fan community for the Vikings, I barely miss the mainstream coverage (but I suspect they miss me and the thousands of other out-of-state visitors they used to get in the pre-paywall days).