"We're also banking on the fact that more and more companies [in our sector, especially] will be moving
toward a subscription basis, so as that picks up, we'll be in better shape because we're the first with a fully
customizable database application."
Bell Globemedia's now defunct TSNMax.ca featured exclusive reports from TSN and the Globe and Mail
with video, fantasy pools, wireless alerts of news and scores, at a cost of $4.95 per month. Despite a $2
million ad campaign to promote it, the sports Web site simply couldn't attract a substantial pay-for-use
audience. But, some of its popular subscription-based features (namely its fantasy pools), will remain paid
services within TSN.ca, says Steve Hulford, VP, sports products at Bell Globemedia interactive, who
handled the TSNmax.ca migration.
"We threw [TSNMax.ca] out there hoping to learn from it. Our users told us they didn't value, and weren't
willing to pay for premium sports content - it's already so readily available on the Internet. But they said
they did value the games," he says. The fantasy pools and games, which are now part of TSN.ca, will either
be pay-per-use or advertiser-sponsored (free to users) after the site is re-designed and re-launched this
summer.
"You're going to get a smaller audience in a pay environment," adds Hulford. "That's why we're using
TSN.ca, where we're getting inundated with traffic and we can monetize that audience. Sponsors are
attracted to that. And that opportunity could exist in every sector or genre."
Sites must choose wisely what they charge for and what they don't, he says. "The tendency is to make a
whole site for-fee, and sometimes, as we've learned, you need to pick certain features - think about
innovative interactive applications that users will pay for - and from day one charge them for it, so users are
pre-conditioned to pay for them. The rest of the content is there to tease and upsell the user to the pay
services. That allows you to maintain advertising revenue, because you're still getting the audience
numbers."
For its part, Sympatico.ca is constantly datamining to determine what its audience would like to see, and
more importantly, pay for. But John McLarty, GM of Sympatico.ca (English portal), which offers small
games and puzzles as pay-as-you-play services (as well as its domain name registration service), adds the
general interest portal won't likely charge for everything.
"We need to draw visitors with free content, but [if] we could create some niche elements within that big
bucket [the site], then perhaps we have a business model," he says.
The key to the new model's success lies in the publishers' ability to attract specific audiences with premium
content and tie revenue to custom-built applications or services, agrees Marcie Sayiner, senior manager of
research for Ipsos-Reid in Vancouver.
Ipsos-Reid published a report in September that found that consumers aren't overly willing, or likely, to pay
for just any online content. According to the report, only 5% of Canadian Internet users are willing to fork
over a monthly or annual fee to access a news and information site, and only 8% of Canadian Internet users
have paid for online content in the past. But once publishers start to perfect their offers, she says, they will
see an uptick in users, and advertisers.
[c] 2002 Brunico Communications Inc. Reprinted with permission.STRATEGY, STRATEGY
DIRECT + INTERACTIVE, and "The Canadian Marketing Report" are trademarks of Brunico
Communications Inc.
