Telegraph institutes paywall overseas

Is the paper abdicating US growth in favour of a quick buck?

The Guardian's Josh Halliday reports that the Telegraph has launched a paywall for online readers based outside of the UK:

Telegraph.co.uk is moving to a metered paywall model similar to the New York Times on Thursday after years of planning. The new payment system was introduced at 12.00 GMT according to an internal email seen by MediaGuardian.

The site will remain free for UK users, but overseas visitors will be asked to pay £1.99 for a month's access after viewing the site 20 times.

The move has been in the pipeline at Telegraph Media Group for more than two years. It has been hit by continued delays and has been hampered by the departure of several key executives.

62 per cent of the Telegraph's readership is from overseas, so there is a considerable amount at stake here. Nonetheless, the move feels like an abdication of sorts for the paper, which remains one of the most consistently profitable in the UK.

In charging the £2 a month to international readers, the paper is attempting to monetize its large overseas base; but the fact that that paywall is not going up domestically makes it apparent that the leadership fear falling prey to the same fate as the Times, which has struggled to stay relevant in the national conversation when it can only be read by subscribers.

If the Telegraph is treating its overseas readership as a fixed quantity, that decision makes sense; and anecdotal evidence suggests that the paper is especially popular amongst expatriates, who will already have that relationship before they enter the paywall.

Nonetheless, the strategy is in stark contrast to papers like the Guardian and Mail, which treat their overseas readership as a potential source of significant growth. The Guardian takes the exact opposite approach to the Telegraph, charging for UK tablet readers while offering the same content up for free in the US, while the Mail has piling resources into its US branch, and has made a name for itself providing the sort of celebrity content which US newspapers have little expertise in.

If there is a precursor for what the Telegraph is doing, it's the Independent, which also started to charge US users a small paywall after they read more than 20 articles a month.

Unfortunately, the Independent's move wasn't particularly successful. PaidContent's Robert Andrews writes:

While Independent.co.uk’s domestic UK audience has jumped by 75 percent during the period, its Rest-Of-World traffic (dominated by the US) has grown by just 5.5 percent.

Leonard acknowledges overseas audiences “don’t necessarily stick”, but “advertising has flourished for us in North America so we’d like that to continue”.

“So we’re creating new reasons to engage with us,” Leonard tells Journalism.co.uk. “If we were the New York Times, and had a real following, particularly a subscription-based audience, I think we might have a different view on that.”

If the Telegraph gets it right, they could have a nice little income; but even the best case scenario is that they have sacrificed the chance of growing their future audience for a payday now. That may still be a prudent move; but it's also the safe one.

A notable Telegraph cover. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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The 11 things we know after the Brexit plan debate

Labour may just have fallen into a trap. 

On Wednesday, both Labour and Tory MPs filed out of the Commons together to back a motion calling on the Prime Minister to commit to publish the government’s Brexit plan before Article 50 is triggered in March 2017. 

The motion was proposed by Labour, but the government agreed to back it after inserting its own amendment calling on MPs to “respect the wishes of the United Kingdom” and adhere to the original timetable. 

With questions on everything from the customs union to the Northern Irish border, it is clear that the Brexit minister David Davis will have a busy Christmas. Meanwhile, his declared intention to stay schtum about the meat of Brexit negotiations for now means the nation has been hanging off every titbit of news, including a snapped memo reading “have cake and eat it”. 

So, with confusion abounding, here is what we know from the Brexit plan debate: 

1. The government will set out a Brexit plan before triggering Article 50

The Brexit minister David Davis said that Parliament will get to hear the government’s “strategic plans” ahead of triggering Article 50, but that this will not include anything that will “jeopardise our negotiating position”. 

While this is something of a victory for the Remain MPs and the Opposition, the devil is in the detail. For example, this could still mean anything from a white paper to a brief description released days before the March deadline.

2. Parliament will get a say on converting EU law into UK law

Davis repeated that the Great Repeal Bill, which scraps the European Communities Act 1972, will be presented to the Commons during the two-year period following Article 50.

He said: “After that there will be a series of consequential legislative measures, some primary, some secondary, and on every measure the House will have a vote and say.”

In other words, MPs will get to debate how existing EU law is converted to UK law. But, crucially, that isn’t the same as getting to debate the trade negotiations. And the crucial trade-off between access to the single market versus freedom of movement is likely to be decided there. 

3. Parliament is almost sure to get a final vote on the Brexit deal

The European Parliament is expected to vote on the final Brexit deal, which means the government accepts it also needs parliamentary approval. Davis said: “It is inconceivable to me that if the European Parliament has a vote, this House does not.”

Davis also pledged to keep MPs as well-informed as MEPs will be.

However, as shadow Brexit secretary Keir Starmer pointed out to The New Statesman, this could still leave MPs facing the choice of passing a Brexit deal they disagree with or plunging into a post-EU abyss. 

4. The government still plans to trigger Article 50 in March

With German and French elections planned for 2017, Labour MP Geraint Davies asked if there was any point triggering Article 50 before the autumn. 

But Davis said there were 15 elections scheduled during the negotiation process, so such kind of delay was “simply not possible”. 

5. Themed debates are a clue to Brexit priorities

One way to get a measure of the government’s priorities is the themed debates it is holding on various areas covered by EU law, including two already held on workers’ rights and transport.  

Davis mentioned themed debates as a key way his department would be held to account. 

It's not exactly disclosure, but it is one step better than relying on a camera man papping advisers as they walk into No.10 with their notes on show. 

6. The immigration policy is likely to focus on unskilled migrants

At the Tory party conference, Theresa May hinted at a draconian immigration policy that had little time for “citizens of the world”, while Davis said the “clear message” from the Brexit vote was “control immigration”.

He struck a softer tone in the debate, saying: “Free movement of people cannot continue as it is now, but this will not mean pulling up the drawbridge.”

The government would try to win “the global battle for talent”, he added. If the government intends to stick to its migration target and, as this suggests, will keep the criteria for skilled immigrants flexible, the main target for a clampdown is clearly unskilled labour.  

7. The government is still trying to stay in the customs union

Pressed about the customs union by Anna Soubry, the outspoken Tory backbencher, Davis said the government is looking at “several options”. This includes Norway, which is in the single market but not the customs union, and Switzerland, which is in neither but has a customs agreement. 

(For what it's worth, the EU describes this as "a series of bilateral agreements where Switzerland has agreed to take on certain aspects of EU legislation in exchange for accessing the EU's single market". It also notes that Swiss exports to the EU are focused on a few sectors, like chemicals, machinery and, yes, watches.)

8. The government wants the status quo on security

Davis said that on security and law enforcement “our aim is to preserve the current relationship as best we can”. 

He said there is a “clear mutual interest in continued co-operation” and signalled a willingness for the UK to pitch in to ensure Europe is secure across borders. 

One of the big tests for this commitment will be if the government opts into Europol legislation which comes into force next year.

9. The Chancellor is wooing industries

Robin Walker, the under-secretary for Brexit, said Philip Hammond and Brexit ministers were meeting organisations in the City, and had also met representatives from the aerospace, energy, farming, chemicals, car manufacturing and tourism industries. 

However, Labour has already attacked the government for playing favourites with its secretive Nissan deal. Brexit ministers have a fine line to walk between diplomacy and what looks like a bribe. 

10. Devolved administrations are causing trouble

A meeting with leaders of Scotland, Wales and Northern Ireland ended badly, with the First Minister of Scotland Nicola Sturgeon publicly declaring it “deeply frustrating”. The Scottish government has since ramped up its attempts to block Brexit in the courts. 

Walker took a more conciliatory tone, saying that the PM was “committed to full engagement with the devolved administrations” and said he undertook the task of “listening to the concerns” of their representatives. 

11. Remain MPs may have just voted for a trap

Those MPs backing Remain were divided on whether to back the debate with the government’s amendment, with the Green co-leader Caroline Lucas calling it “the Tories’ trap”.

She argued that it meant signing up to invoking Article 50 by March, and imposing a “tight timetable” and “arbitrary deadline”, all for a vaguely-worded Brexit plan. In the end, Lucas was one of the Remainers who voted against the motion, along with the SNP. 

George agrees – you can read his analysis of the Brexit trap here

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.