TheNewspaperToday.com to charge for news

BANGALORE: Living Media publishing group has decided to make readers pay for

its online newspaper, becoming one of the first in the country to take a plunge

into subscription in a weak advertising market.

Readers of "TheNewspaperToday.com," launched a year ago, can get

the news they want through personalized editions by choosing and setting

priorities on headlines, stock tickers and events.

"In the real world, you can't sustain a business just on hype or because

it is a good idea," said Kalli Purie, chief operating officer of the

Internet business of the firm that publishes the popular India Today news

weekly. "In the end it has to make money, otherwise there is no point in

doing it," Purie said in a statement sent to Reuters.

The pay model is part of a move to cater to a niche audience of discerning

readers. The Delhi-based group will charge between Rs 299 and Rs 899 as

subscription fees for six months to two years.

The decision to shift to a pay model comes when global news sites have seen a

record amount of traffic with the appetite for news kindled by September 11

attacks in the United States. However, the attacks also dealt a brutal blow to

the already weak advertising sector, which many global executives have said is

facing one of its worst years. "Advertisers will now get a better quality

of audience, rather than the non-commercially viable audience," Purie said.

TheNewspaperToday.com, which adopted the pay model last week, recorded 60

million page views in October, an eight-fold increase since its launch. The

e-newspaper, which has a team of about 100 people will offer cricket scores,

features from its group publications and multi-media content backed by its Hindi

language television news channel.

Living Media India Ltd., a closely held company, has traditional interests in

printing. Some online sites of the group's magazines already charge for news.

India has a small but fast growing Internet market which is expected to hit 15

million subscribers in about two years from the three million now.

(R) Reuters Limited