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Newsday Plans to Charge for Web Site

Newsday on Long Island may become the first U.S. metro daily newspaper to jump into the pay fray as a way to sustain the current business model. During a conference call Thursday, Cablevision CEO Tom Rutledge said his company, which owns Newsday and News12, a cable TV network in the New York metro area, will be charging for content on their sites, though he did not specify a time.

"When we purchased Newsday, we were aware of the long-term issues facing the traditional newspaper industry," Rutledge said. "We plan to end the distribution of free web content and make our newsgathering capabilities a service to our customers."

Newsday reportedly lost over $300 million in the fourth quarter last year and, with a well-trafficked web site, pay-for-content may help to offset some of the losses. Currently, the Wall Street Journal is the only U.S. newspaper site that requires a subscription.

Of course, it didn't take long for skeptics to emerge. In his blog, Ken Doctor thinks Newsday may be committing web site suicide:

The average unique visitor on Newsday.com spends four minutes, 25 seconds per month on the site. Ouch. That number can sub for lots of focus groups, price elasticity testing and the like. Newsday's would-be digital audience has voted with its fingertips. That number is up almost one minute from a year earlier, here courtesy of E&P's monthly Nielsen rankings, but still ranks Newsday as having the lowest online engagement of the top 30 newspaper sites.

Confronted with having to pay for a site you may use less than five minutes a month, you think you are going to pay for it? Wrong site. Wrong year. Wrong metro area.

He may have a very valid point. The New York metro area is blanketed by newspaper web sites: The New York Times, Daily News, Post and Star-Ledger, not to mention the Journal. This goes back to the argument that if a paywall has to be erected, the most probable way for it to succeed is having a cooperative among all newspapers.