Wednesday, August 12, 2009

Martin Belam illustrates the economics of pay walls

The relationship between scarcity and Price is a standard economic principle and can be related to the charging for online news.

Martin Belam seeks to illustrate this principle to demonstrate why Rupert Murdoch's paywall won't work and provides this image where newspapers from the UK, US, Australia, Germany, Hong Kong and India are all covering the same story.



And concludes that

when we think about asking the market to pay for newspaper content online, I think we have to look honestly at that content, and ask, what have we got that is unique and desired by consumers?

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