At The Guardian, Signs That Free Online News Can Pay

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http://www.bloomberg.com/news/2013-09-27/at-the-guardian-signs-that-free-online-news-can-pay.html


The Guardian Media Group, publisher of The Guardian newspaper, bounced back into the black this year. And it did so without charging any of the publication's 78 million monthly Web readers a penny.

While much of the group's 22.7 million pounds ($36.6 million) in pre-tax profit was generated by other publishing operations, The Guardian saw its digital revenue jump 29 percent last year, outpacing the decline in its print sales and giving the 192-year-old newspaper cause for cheer after years of losses.

As rival U.K. newspapers start charging for content -- in effect giving up on a big chunk of readers in exchange for money from a smaller number of devoted fans -- The Guardian's latest financials provide some hope that a free online news model can be good for business as well as consumers.

It's far from clear whether charging for content offers more sustainable profits than giving it away and earning more from ad sales. If The Guardian, whose first front page featured an ad for a lost dog, can sustain its digital growth, it will offer a strong argument in favor of free news.