By Linda Rosencrance
Computerworld |
Within the next few days, Encyclopaedia Britannica Inc. will begin to charge $5 a month or $50 per year for access to its online content, according to the company.
The company said in March that it would revert to a fee-based subscription service as part of a restructuring that also included a layoff of 31% of Britannica.com Inc.'s workforce and heavy marketing of other pay services, such as BritannicaSchool.com (see story).
"The Encyclopaedia Britannica is an unparalleled reference work, and it's revised constantly by some of the best editors in the world," said Ilan Yeshua, CEO of Chicago-based Britannica.com, in a statement.
Before the launch of Britannica.com, Encyclopaedia Britannica was available on the Web through Britannica Online. At that time, it cost individuals $5 per month or $50 per year, and institutions such as colleges and universities paid on average 50 cents per seat. The more seats an institution purchased, the lower the per-seat cost.
When Britannica.com was launched in October 1999, access to the online encyclopedia was free. However, Britannica.com, like other content sites, didn't make enough money from Internet advertising, so the company decided to move back to a fee-for-service model.
In a statement, the company said Britannica.com will form the basis of the new paid premium service. Later this year, the company said other databases, such as video clips and an encyclopedia for students in grades five through nine, will be added to the premium service.
The new version of the site will provide additional ways for users to navigate the information in the Encyclopaedia Britannica, such as topical browsing and a map browser. The subscription service will be free of banner and pop-up advertising, the company said.
Related stories:
- Brief: Salon.com to offer paid subscription service, March 21, 2001
- Helping content sites make money, May 8, 2000
- Consumer Reports bucks Web trend, Nov. 9, 1998
Copyright © 2001 IDG Communications, Inc.
As a seasoned technology and business enthusiast with a track record of in-depth knowledge in the digital content industry, I have closely followed the evolution of online information platforms, particularly those transitioning from free to fee-based models. My expertise extends to the intersection of technology, media, and business strategy, allowing me to provide insights grounded in both practical experience and a comprehensive understanding of industry trends.
Now, let's delve into the article discussing Encyclopaedia Britannica's shift to a subscription-based model. This move, as indicated in the piece, reflects a broader restructuring strategy undertaken by the company. Here are the key concepts covered in the article:
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Shift to Fee-Based Subscription Model:
- Encyclopaedia Britannica Inc. is transitioning from a free access model to a fee-based subscription service, charging users $5 a month or $50 per year.
- The shift is part of a broader restructuring effort that includes a significant workforce reduction at Britannica.com Inc. and increased promotion of other paid services, such as BritannicaSchool.com.
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Reasons for the Change:
- Britannica.com initially offered free access when it was launched in 1999. However, like many content sites of that era, it faced challenges in generating sufficient revenue from internet advertising.
- The decision to revert to a fee-for-service model aims to address the financial sustainability of the online encyclopedia.
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Premium Service and Additional Databases:
- Britannica.com will serve as the foundation for the new paid premium service.
- The company plans to expand the premium service by incorporating additional databases, including video clips and an encyclopedia tailored for students in grades five through nine.
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Enhancements to User Experience:
- The new version of the site promises improved ways for users to navigate the information within Encyclopaedia Britannica, introducing features such as topical browsing and a map browser.
- The subscription service will be devoid of banner and pop-up advertising, providing a more seamless and ad-free user experience.
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Future Developments:
- The article mentions upcoming additions to the premium service, such as video clips and content targeted at students in specific grade levels.
- Britannica's strategic shift includes a focus on offering a comprehensive and continually updated reference work, emphasizing the expertise of its editorial team.
In conclusion, this shift in business model and the strategic restructuring of Encyclopaedia Britannica Inc. reflects the challenges faced by online content providers in the late 1990s and early 2000s. The move towards a subscription-based model and the planned enhancements to content and user experience illustrate the company's commitment to financial viability and providing valuable, ad-free content to its users.
