We questioned some of the leaders in the Indian digital publishing industry whether it is the time Indian online publishers strated looking at having a paywall or a content subscription model as a serious stream of revenue? This is what they had to say:

Kalli Purie, COO, India Today Group Digital

I don’t think paywalls or content subscription models as envisaged earlier as micropayments on the web can become a serious source of revenue for publishers of news content.

They may work for specialised contents like our special surveys done by Business Today and India Today.

But more importantly micropayments and subscription services can become a serious source of revenue for digital publishers on mobile -- largely because on mobile, the micropayment is seamless and the content is customised. We generate significant revenues from our digital content on mobile.

Also the digital edition of our magazines available on iPad, Kindle and host of other tablets and e-readers are becoming an important source of revenue. This is likely to grow to significant levels. The surprising thing about revenues from our digital editions is that a lot of it is coming from India even though the magazine is priced in dollars and higher than the local print edition

Maya Hari, Director and Head, Conde Nast India Digital

A paywall for content in the traditional sense of an online site has worked in select cases for publishers catering to premium audiences. Given today’s reality, we find that consumers are more willing to pay for content via mobile and tablet apps. Whether that is the digital version of a magazine or whether it is a native digital app with a cover price for download, monetizing content via apps is potentially a strong revenue source for publishers.

 

S N Bhaduri, Country Manager, Consumer Media Group, Reuters India

Subscription model can only work if the content is exclusive and this timely knowledge can give a tangible benefit to the consumer.

 

Sanjay Trehan, Head - MSN India

Today the online medium is much more than a source of information; it is the new digital playground.  It is emerging as an ‘entertainment hub’ and a popular destination for serious content research and creation. And the smartest and most respected online publishers are already using user generated content to engage with their consumers. Technology is also enabling powerful interfaces to give consumers the most interactive and personal experience.

As India’s leading consumer website, MSN India is a complete & single destination for all consumer needs be it news, entertainment, social networking or email. We believe in co-opting the consumers in content creation for greater consumer participation and involvement so as to move beyond a one-way interaction. MSN has a crisp, new user interface that is smartly integrated with Social networking sites such as Facebook and Twitter.

This opens up a lot of avenues from the perspective of online publishing and the entire industry will go digital in coming 10 years, and in India too, akin to the West, we will see a huge shift. According to Neilson, online video is most broadly watched among online consumers in China and Indonesia, where consumers are 26 per cent more likely to use video. India stands at number 3.

However, as new and richer content formats emerge there needs to be net value added for end audiences, and the content needs to be differentiated. A fine example is The New York Times which announced plans to charge the most frequent users of its website for access. While erecting a paywall, The New York Times has ensured that the consumer understands the value of such content and is ready to pay a premium for it.  Hence the New York Times readers get unlimited access to articles and blog posts, as well as video, slide shows and other multimedia features — on the Web site, mobile site, and through smartphone and tablet apps under a subscription based model. Interesting and differentiated features by The New York Times like a snapshot of 36 hours in the life of the world,  covering the last 24 hours and on what the next 12 hours  will be, is a good lesson for online publishers looking at adopting a subscription based model.

In short enriching, engaging and differentiated content will be the biggest pull for consumers who are right now more open to free articles which are abundant and easily accessible on the internet.