Thread: The end of free content on the Web?

Facebook is rolling out a new payments system. Hulu may start charging for videos. And some newspapers want people to pay to read articles online.

Is this the end of free content on the Web?

The business models were heading in this direction, but the economic downturn has perhaps sped it along a bit. That, and the realization that online advertising just isn't going to pay for everything.

Facebook isn't charging its members -- at least not yet -- but the site is working on a system that would sell credits to users, who then can spend those credits on games and other programs on the site, the Financial Times reports.

Outside estimates have guessed that Facebook's 2009 revenue will hit $500 million, the Times says. The new payments system could contribute a third of future revenue. The company still isn't profitable.

Hulu has hooked a loyal user base, and an executive at News Corp. (NWS) said he envisions a system where some of the site's movies and television shows are available only to paying subscribers, according to DailyFinance. The site hasn't officially announced plans to that effect, however.

Some newspapers, including my hometown San Jose Mercury-News, plan to start charging for online access. One journalism startup thinks newspaper publishers can get up to 10% of online readers to pay, while maintaining around 90% of page views and ad revenue, according to Nieman Journalism Lab.

People are used to getting content online for free. Facebook is taking a smart approach by keeping its core experience free but charging for additional features. I imagine Hulu will take the same approach. It's all about finding that sweet spot where companies can persuade some people to pay while keeping free users satisfied.