EXCLUSIVE: News Digital Media bosses Richard Freudenstein and John Allan have embarked on an agency roadshow to sell the merits of The Australian's freemium model, which is to launch at the end of October.
Key media agencies and holding companies have told AdNews that Freudenstein, the chief executive of The Australian and News Digital Media, and Allan, the newspaper’s chief operating officer, have engaged in one-to-one talks with their key buyers and members of the management teams in recent weeks.
Originally, News Digital Media provisionally pencilled in September as the start date for the paywall, but the launch has been pushed back to the end of October.
News Digital Media director of corporate affairs, Stephen Browning, declined to comment on the agency roadshow but said "we are on track to introduce digital subscription packages in October".
Freudenstein is informing buyers that News Digital has identified three key audience segments: 'Migrated Customers', who consume “all things digital”, 'Migrating', consumers moving from print to online. The third audience segment is 'Migrated', The Australian's “most profitable audience”, buyers are being advised.
The “Migrated” audience segment are those who already pay for the The Australian's iPad app, which rolled out into the market last year. Freudenstein and Allan are also offering buyers two advertising packages, as they look to tie down launch advertisers.
The Australian will unveil a number of subscription packages, covering print and digital. A full digital subscription giving access to The Australian’s entire website, iPad and Android apps, and m-site will cost $2.95 per week. New six day print subscribers will also receive a full digital subscription, and pay $7.95 a week. A full digital subscription plus The Weekend Australian print edition is priced at $4.50 a week.
One media buyer said the pricing model "made sense".
"News Corporation's scale has enabled the company to experiment in other parts of the world [ed - The Wall Street Journal and The Times], and apply those learnings to its Australian operation," he said.
"The New York Times is the model now considered to be of choice, where users see genuine value in print as well as through online, mobile and tablet access."
A separate media buyer said: "We all support the challenge publishers are facing. It will be interesting to see how consumers react when the free lunch is over. There's a willingness among consumers to pay for content, but it's a question of tolerance levels for consumers and advertisers."
The Australian will become the first News Limited-owned masthead to charge readers for journalism on its websites, with the Daily Telegraph and The Herald Sun set to follow next year.
Have something to say? Send us your comments using the form below or contact the writer at darrendavidson@yaffa.com.au
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.