Mark Cuban
attempts to crack one of the most vexing problems facing media companies today - How to effectively sell content online:
So what should you do to sell your online content ?
The first thing you have to do is realize that internet consumers are only fine with paying for content when the following two criteria are met:
1. It is easy to buy.
2. It is easy for any consumer to assign a “perceived value” to the content and you charge less than that amount.
2a. Remind yourself that just because you assign a specific value, doesn’t mean the consumer will. Case in point are newspaper sites. Consumers might adamantly believe that your writers are better than AP writers. They might believe that your site uncovers news that MSNBC.com doesn’t, Unfortunately for you, because it’s all free to this point, they aren’t saying to themselves “wow, the only way I have EVER been able to get this is news is by paying $2.99 a week and now I can get it from Fox for only $ 2 per month. It’s not going to happen. Instead, it will be “I like the NY Post. I love Page Six. But I’m not going to pay to get what I have always gotten online for free. Not going to happen.
So what Fox, and any media conglomerate has to do is find DIGITAL or INCREDIBLY HIGH MARGIN products that have a perceived value to the consumer, that you can bundle with your online content.
Let me give you an example.
You could offer a “Newsjunkies Subscription” that includes:
a. Access to every Newscorp news website from around the world (excluding the wall street journal). From the NYPost to the UK’s Sunday Times, Sun and more.
b. Your choice of any 2 books from our Harpers Collins collection. That’s right. Pick any 2, from our Best Sellers list, or from the special list we have put together specifically for newsjunkies like you. Its your choice if you want them in hardback, paperback or e-book format.
c. A subscription to our news magazine, The Weekly Standard. The choice is yours whether you would like it delivered to your emailbox, printed and mailed to you or both !
d. A $99 credit at a special edition of The Fox Store that we put together exclusively for our News Junkie Subscribers. You can pick from newly released to DVD movies or from our classics. Its up to you !
So to summarize. In addition to Fox websites from around the world, a $ 79 dollar annual value, you get:
2 books from our Harper Collins collection, with a value of up to $79.
a subscription to the Weekly Standard, worth up to $ 64 (in a deal with its new owner)
a special $99 credit at The Fox Store where you can pick from an amazing selection of movies and tv shows.
For a total value of $ 321.
Because our Fox News Junkie Subscribers are critically important to us, we are offering this special package for a limited time only. This amazing package can be yours for the low low price of only…
$ 9.95 per month with a minimum commitment of 15 months !
Read his whole post
here.Labels: Information Age, Mark Cuban, News Corp