Free Information

The largest internet service provider, American Online, and its highly influencial partner's Time Warner are cutting back on there output of free online magazine's. Citing slipping sale's and the claim from some of their stockholder's that they are not doing enough to try and attract new customer's. They are making dozen's of their highest-profile and lucrative magazine's(including People and Entertainment Weekly) have subscribtion fee's for the online format, and free for AOL subscriber's, in an attempt to create more customer's for their affiliate AOL. This decision comes as a result of AOL losing money for the first time ever last quarter. Proving that the problem of how to make free information profitable effects even the largest business' in this sector.

While many of the Large E-zine's and major multi-media conglomerates are struggling with their Web publications, the online magazine companies that are surving during this down period are those that are small, niche-based, and highy focused. These smaller companies are seeking those who are dissatisfied with the major mainstream news sources, such as CNN and MSNBC, and looking for an alternive on the Web. The Web-based companies that entered the market strictly as an online publication are being hit the hardest, but even well established companies have been faltering in their electronic publications. While the audience continues to grow for online news at established national news organizations, including BusinessWeek Online, just about everybody is still struggling with the question of how to make any money off the business model.

Making Money on the Web

Problem of Free Information

AOL

Finding a Niche

Making it Work

References