Mr Murdoch’s News Corp estimates that the marginal revenue from an occasional browser is less than one tenth of a penny a year. Even Group M, the media buying agency of WPP, the advertising group, argues in a research note that the bulk of news surfers are “useless tourists” who not only pay nothing but have little advertising potential.
“Free distribution of premium content is like eating your babies. You will give value away until you go bust,” writes Group M. It suggests avoiding a “permanent oversupply of digital inventory” on the open web by using a paywall to “lift the publisher out of remnant inventory and restore a much smaller but aggregated audience.”
-FT
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