Singapore – News publications under Singapore Press Holdings (SPH) will retain their paid-subscription business model despite receiving Government funding, said Mr Khaw Boon Wan, the incoming chairman of SPH Media Trust.
The retention of the current business model will push newsrooms to answer “a higher call” to quality journalism and press them to produce quality content, said Mr Khaw, who accepted the position of chairman of SPH’s new not-for-profit media entity.
“I have strong views about pricing and subscription because if the objective is just to chase eyeballs (readership), then the easiest is to make it free… What is the objective? The objective is — you want quality journalism, quality content,” said Mr Khaw on Wednesday (May 12) during his first town hall meeting with the newsrooms at SPH News Centre in Toa Payoh North.
He noted how if the news is free, “people just take it,” and wondered if people actually read it. “Or do they just read one line and then throw it away?”
“(There is) nothing like content that is so compelling that, yes, I am willing to pay (for it) … as in my case for Financial Times or (The) Economist,” he said.
Mr Khaw was responding to TODAY’s question on why readers would have to pay for the news when the upcoming company limited by guarantee would already be funded by taxpayers.
SPH announced on May 6 that it was restructuring its media business, subject to shareholders’ approval, due to the ongoing challenge of falling advertising revenue.
The new entity will be called SPH Media Trust, with Mr Patrick Daniel, 66, former deputy chief executive officer of SPH, as the interim CEO.
Mr Khaw, who agreed to be the chairman, retired from politics in 2020 after 19 years in service and last served as Coordinating Minister for Infrastructure and Minister for Transport.
Mr Khaw explained that the subscription-based business model would place “higher pressure” on newsrooms to see if they are “doing the right thing that the customers find valuable”, reported TODAY.
However, he acknowledged that price must meet quality, noting it was “both a science and an art”.
“If you insist on a paid product, and your product is just an ordinary breaking news (platform) without much analysis and insight, then why should people pay to buy your product?” he asked.
“It is not just (as) simple (as putting) up a toll gate, (charge it at) so many dollars, and that’s it,” he added.
He noted that the paid model would ensure readers receive content with deeper analysis and original insights not available from competitors.
To achieve such content, news outlets would need to attract talent, paying competitive wages./TISG
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