New York, NY  – Long Island’s Newsday newspaper is prepared to be the first newspaper in the region to restrict online access to subscribers only, charging readers $5 per week to read the newspaper online.   This strategy is not a new concept in the industry as newspaper companies worldwide have always considered this option, but most realize the effects it will on their online business.

In just 5 days, the site will be closed to ‘freeloaders’ getting their news for free.  At least, that is one of the theories that circulate within print media board rooms.   The problem is the decline of  newspapers in America and the hostile takeover of the news by the internet.     Many news agencies have openly embraced this new media delivery system by adjusting accordingly, but in the word  of print media, daily subscriptions drives the business and the old guard can’t seem to break that mold no matter how hard they try.

Faced with declining advertisement revenues, the paper undoubtedly is trying to right their finances by bolstering subscriptions which they hope in turn will pump up advertising revenues.   On paper, this theory works, but in reality, advertisers know what’s going on.   They are spending their advertising budgets elsewhere.  

Newspaper advertising has been on the decline for a decade and no amount of susbscription laundering is going to revert the process.     As somebody with over 15 years in the newspaper and new media industry, here’s what is going to happen.

Newsday’s website will be blackedout in 5 days to non-subscribers.  Very few people will pay to view news they can get for free elsewhere on the internet and an proportionately small amount of people on Long Island who do not get the paper will get a subscription.    They don’t subscribe now because they don’t like newspapers, be it for the environmental impact they have, recycling issues or the clutter they create in your house.

After a few weeks or months of realizing this move is full of fail, Newsday will slowly open up excerpts to the public, then followed by a return to free and open news.   By that time, most online followers will have moved on to their competition and likely won’t return.  It will also open up the opportunity for local competitors to seize the day and take over Newsday’s online market share.

In any event, it will be a black eye for Newsday.   They should have done their research before making this decision.  It has never worked for any newspaper.   Just ask the New York Times.