When Long Island local newspaper Newsday decided to put its Web site behind a pay wall earlier this year, it seemed like an obvious conclusion that there would be less people visiting the site. If you start charging for a previously free item, your consumer-base is going to drop.
If this seems like common sense to most people, Newsday.com did everything in its power to convince the media that the 34 percent dip in its traffic once it enacted a pay wall was due to anything but the obvious $5 a week premium charge.
So why all the denial? Newsday.com still keeps advertising on its Web site, which creates two potential revenue streams for the publisher. Unfortunately, without readers swiping their cards for the site, Newsday‘s advertisers aren’t getting what they paid for in potential consumers.