A Wall Street Journal story on how ConsumerReports.org, the subscription-only Web site for Consumer Reports magazine, has signed up its one-millionth subscriber -- a milestone for any website and a validation that subscription models work. Only about 15% of its online subscribers also subscribe to the print version of Consumer Reports. The site, which employs 30 people, took in $25 million in revenue last year of which half covered its expenses.
Subscriptions have grown sharply, rising from 690,000 subscribers last November. A year's subscription to the site (www.consumerreports.org) costs $24. For users who also subscribe to its magazine, the Web site costs $19 a year.
"I like to think that we've shown that information has value," said Joel Gurin, executive vice president at Consumers Union. "Consumers are willing to pay for credible information."
Charging for content has become a more popular option for Web sites -- especially as the online advertising market has dried up. RealOne, from RealNetworks Inc., has 750,000 subscribers who pay for access to audio and video clips from content partners like Major League Baseball, CNN, FoxSports and others.
The Wall Street Journal Online, published by Dow Jones & Co., said it had 664,000 subscribers as of Sept. 30, up 9% from a year earlier. Pearson PLC's Financial Times recently began charging fees for some of its content. Other online publishers who have expanded into premium content include iVillage Inc., TheStreet.com Inc. and Salon Media Group Inc.