Publishers must protect right to charge for content, says FT.com chief

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News organisations must protect their right to charge for content online, the managing director of the Financial Times website said today.

Publishers have adopted a ‘free for all’ model for too long, FT.com’s Rob Grimshaw told delegates at the SIIA Global Information Industry Summit. Last October the FT introduced a new registration and subscription model for access to its website based on the number of articles read by a user.

"There seems to be a pervading view that there must be purity in business models on the web. That it must be all paid for, or all free and advertising driven. If we want to move forward on the internet we need to find a way to do the two things together," said Grimshaw.

"There’s a lot of innovation to come on the web, in particular how we price our audiences and our content. The right for us to charge for our content is absolutely key."

Although the new FT access model has led to a higher number of free registered users than paying subscribers, Grimshaw said revenue had been gained from advertising to these non-paying users.

Additional revenue from the site has been derived from subscription-based deals made directly with corporate clients - creating a broader model, Grimshaw added.

"Regardless of what is said in public, when you speak to clients and consumers they are prepared to pay for it [FT.com content]."

Publishers can charge for quality content, which is tailored to the needs of an individual group, he added.