Salon.com abandons free content

NEWS Online magazine Salon.com is to start charging readers for content as it aims to reverse six consecutive loss-making years. The charges, effective from yesterday, come just six months after the company first introduced a subscription service, which offered readers advertising free content for a $30 annual fee. Up to 20,000 subscribers registered for that service, but as advertising revenues continue to plummet, Salon readers can now expect to pay for all breaking news and political content. Last week the site introduced a new format of pop-up advertising which made it impossible for readers to access a story without first clicking on the advert, in a bid to boost advertising revenue. However, in a letter to readers yesterday Salon editor David Talbot said that advertising revenues covered less than half of the website's expenses. While the company managed to raise $3.25m in third round funding last month, it has accrued $98m in losses since it began six years ago and is under pressure to deliver a breakeven result within the next two quarters.