If you’re an owner of content, you are faced with the rock-and-a-hard-place discussed below: content is plentiful and plenty of it is free, so how are you going to make money?
Yes, you can make your content the absolute best in class, and you will find a fraction of your audience that will pay because your content is just so damn good, but on a grand scale you can’t really add value to content. You need to come at the problem from the other side and add value to the consumer.
Social media, the tools we have now to learn about people, and the new way we build relationships between people and brands- these are the ways you’ll make each and every consumer more valuable. Display ads are nowhere – they’re a megaphone to an undifferentiated and indifferent world. But if you tell me you can reach Northwest dads in their 50s who rock climb and recently quit smoking (which you easily can, by mining plentifully available data) – and if you are a modern brand that’s built direct and personal relationships with those consumers- suddenly you’ve added value to those consumers, who, in turn, add value to you.

Great piece by Felix Salmon in his Reuters blog, which jumps off from News Corp and its proposed paywall and includes a quote from Group M characterizing non-paying readers of online news as “useless tourists”. Salmon says (I couldn’t possibly phrase it better):

Millions of people are willing to pay for a physical object — a newspaper — but are not willing to pay to read that same newspaper online. It doesn’t make sense that those millions of people are hugely desirable readers when they’re reading a physical newspaper, and hugely desirable readers if they pay to read content online, but are just “useless tourists” if they don’t pay to read content online.

Here we go again with the challenge we’ve faced since “content wants to be free” and “content is king” both came into being: how do you make the consumer of free content valuable?
Seems to me you’d better find a different means of valuation. If you can’t value the consumer by ad dollars because they’re not worth enough to advertisers, and you can’t value the consumer by the subscription dollars you so dearly WISH they’d pay…guess what?

It is up to you to make your consumer – your customer- your audience -more valuable.
More on that next post.