Should newspapers raise their purchase price?

BUCHAREST, Romania - Jan. 6, 2014 - PRLog -- However, in The Guardian, Frédéric Filloux argues that the best way newspapers can make money, which they desperately need is to increase their price. He gives exemple from a study, in witch a number of newspapers increased their prices in recent years and have felt increases in revenue because of this. While some of these examples are not very convincing, they tend to suggest that demand for newspapers is not as elastic as we thought.

In America, 1,380 daily newspapers in 450 countries, have begun to demand a tax for news. As raw materials will be more expensive, but also the print subscription, more and more online news sites will decide to charge a tax to allow visitors to read the news. Together with other new income streams, they will rebalance the media industry, which since its inception has been dependent on advertising.

It seems like everyone who is loyal to a newspaper now, will pay a little bit more to read further news from his favorite newspaper. Newspapers are losing more readers if they pass to digital version then raising their price, it is clear from the study by Frédéric Filloux, and prices have not reached a level that readers will not be willing to pay. So , some newspapers can still raise the prices and increase their revenues.

It remains to be seen whether these prices can have a profound impact on revenue of the whole media industry. Although known newspapers, such as the Wall Street Journal and New York Times have been successful, others , such as the Globe, have failed so easy to convince people to pay.

However, as an expert in the industry, Ken Doctor, points out that newspapers have always acted with double income streams, earn money from both advertising and from subscribers. As the internet has stopped massive income from advertising, newspapers and magazines have been forced to look elsewhere for money.

One thing not mentioned in the study of Frédéric Filloux is the impact that these price increases have on advertising revenue. Any revenue from increased prices will offset any loss of advertising agencies? It would be interesting to know, given that advertising will likely continue to have an important role for printed newspapers, but for online newspapers.

It is also interesting to find out how the printed newspapers will resist, as the younger generation are turning to online newspapers. It will reach a point where price increases will not be profitable ?

It would be interesting to find out the answer to these questions.
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