What's news?

Got my grabby hands on a copy of a really good UK magazine called Wired. There is an article on Murdoch's new business model which has got everyone talking. He explains that, "the current days of internet are over" and we are moving away from a free online content model. Introducing a weekly subscription package of various news and magazine titles within a weekly micropayments system of $1.99. Current research has shown that with the introduction of subscriptions packages 85%-95% of traffic was the same as before. Publishers don't lose traffic when you give away a proportion of free content to medium users. 10% of heavy user subscribe to get more information, while medium users keep the traffic moving. It's interesting to see if consumers will start paying for something that we have been getting for free. The free business model is not financially profitable as ad banners still work like traditional media models.