Final answer:
The success of paywalls for online newspapers varies, with some major publications like The Wall Street Journal finding success, while other newspapers struggle against free content providers and the shift of ad revenues online.
Step-by-step explanation:
The success of paywalls in generating substantial revenue for online newspapers is a complex topic, and hence, the assessment of their success can't be plainly categorized as true or false. The practical outcome of paywalls varies widely among different publications. Certain prestigious newspapers like The Wall Street Journal have reported a considerable electronic readership even with a paywall in place, indicating a measure of success in their specific case.
Nonetheless, the broader context shows a mixed picture. Traditional print ad revenues have plummeted, with newspapers seeing a significant decline from $46 billion in 2012 to $20.5 billion in 2020. At the same time, free online platforms like the Huffington Post and digitized local news such as AOL's Patch.com challenge the implementation of paywalls by offering free content. Some newspapers have maintained financial stability through a combined presence in print and digital, with digital subscriptions bolstered by advertising revenue and a leaner operational approach. National newspapers have experienced better success with paywalls compared to local newspapers, many of which have closed or been consolidated.
Overall, digital pay plans may help some newspapers sustain themselves, especially as digital ad revenue is not sufficient to cover the loss from print advertising. However, the effect is not universally positive, and many newspapers struggle to monetize their digital content in a landscape with abundant free alternatives and a shift of classified ads to online platforms. In sum, while paywalls represent one means to sustain revenue for online newspapers, the diverse outcomes challenge the notion that they are inherently successful across the board.