LINKS | Micropayments Don’t Work, but Everyone Has a Better Idea
Somehow, I missed the links from the latter part of last week, and have been bookmarking like crazy this last week. So, ya'll get a ton of links. Apologies for the long, long list, but I've broken it up with some good videos — and I've edited down! These are the cream of the crop from February 10th through February 20th:
Journalism Business Models
Hulu's Superbowl Ad and the Boxee Fight - O'Reilly Radar: “I’m sure Hulu is totally pissed. They pretty much said just that in a somewhat more stilted way. The real insult, though, is calling the people who made them cut Boxee off “content providers.” They…
- Why I dislike micropayments, don't mind charity, but really have a better idea Network(ed)News: What a fantastically simple idea for a journalism business model: charge for interaction with the content creator. Donate some money to the site, and the chances of your comments etc being responded…
- Walter Isaacson: You've got it all wrong | Musings of an Anonymous Geek: Theodor Nelson writes the equivalent of a very long blog post as a response to Walter Isaacson’s use of his name in his argument for micropayments for news. Essentially, Nelson wants to use a…
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Interview: Wired's Chris Anderson on the 'free' business model | Between the Lines | ZDNet.com: Chris Anderson, author of Long Tail, discusses the Freemium business model.
- Tech Tools Day 1: Tomorrow's Journalism and Journalists - The Next Newsroom Project: “Readers have never been willing to support this industry economically,” Fine said. “Her advice for anyone in the news biz was direct: ‘I know that not everyone wants to be an entrepreneur,’ Fine…
- DigiDave | Communication is Key: Journalism Beyond Newspapers - Don't Become Nonprofits - Work for Them: Dave Cohn makes a good point: journalists can market their services toward non-profits who need the press and often can’t get their message out there.
- Forget Micropayments -- Here's a Far Better Idea for Monetizing Content: Steve Outing endorses Kachingle, a micro-payment service for websites with one distinct caveat: paying is still optional. The user decides on how much they want to pay for their news, and all the…
- Will paid content work? Two cautionary tales from 2004 Nieman Journalism Lab Pushing to the Future of Journalism: Good look at the failures of the Paid Content model: LAT, and the Albuquerque Journal. End with a reminder: just because Editors think that they are entitled to make money from content, it doesn’t…
- Op-Ed Contributor - You Can't Sell News by the Slice - NYTimes.com: A New York Times op-ed on why paid content won’t work. Oh, and that even if it did, the revenue wouldn’t “save newspapers.”
- What does engagement mean for newspapers? - Eat Sleep Publish: A good summary and batch of links on why engagement on sites is important.
Top 15 of 2008: The leading regional newspaper sites shuffle their ranks Nieman Journalism Lab Pushing to the Future of Journalism: The top regional newspapers have seen a significant increase in pageviews.
- lectroid.net Blog Archive Newspapers could actually try online: Really solid advice on how to evolve your print newsroom into a real, online newsorg. Topics include: Staffing, web design, and workflow.
- Reflections of a Newsosaur: How to charge for content. Theoretically.: Alan Mutter jumps on the micropayment bandwagon as the most “logical way” to make money online. He makes the wrong assumption that “Consumers might not like being micro-nickled and nano-dimed for…
Web Journalism
- The Doc Searls Weblog : Saturday, March 24, 2007: Fantastic list of things that newspapers should do on their websites to make them more relevant to users (read: user friendly)
- How an NYT developer built a new way to read the news online: The ‘new’ interface is a great move for the Times. It does distinctly reminds me of http://newser.com and I think corrects one of the major flaws of current online newspaper design: the lack of…
Micropayments Lead to Piracy
Since the TIME cover story that re-rose the micropayment debate last week the topic has been beaten to death across the web, but I want to raise just a few more points that I haven't seen elsewhere.
Information wants to be free. No matter what, people will find a way to get it online. We’ve proven this time and time again with music, movies, software, and video games. No, don’t laugh – video games are a multi-billion dollar industry, that represent some of the greatest achievements in technology in the past decade.
These three heavy-weight entertainment industries have proven that charging for content online leads to … quasi success. Yes, iTunes, Netflix, and Steam have been able to deliver paid content to a mass audience, and they do if far easier than if you try to pirate download the same, but piracy is still rampant.
Make it free, or the pirates will. The TIME article, and others like it, refer to the 'iTunes model' when the talk about micropayments for news. Yet, this analogy is flawed:
- Music, movies, software, and video games are content that has ‘repeat use’ value. News is read once, then mentally file away.
- Music, movies, and video games are entertainment, a luxury good that carries a far different intrinsic value than an essential good like news. Software isn’t a luxury good, but it is a productivity tool that also doesn’t have the intrinsic value that news/information has. Besides, software doesn’t really have the micropayment model either.
- It’s easy to preview content on iTunes, it’s near impossible to provide an accurate preview of information without providing the … information.
I’d be willing to bet that if a news service tries the paid content model people will find someway to get around the pay wall. If they’ve found a way to steal entertainment goods, trust me, they’ll find a way to steal the news.
And that sure doesn’t sound like a Fourth Estate to me: a system where the people have to steal their information!?
Better to let the traditional newsroom die, or run a smaller operation. You can’t tell me that every reporter in a current newsroom actually earns their keep.
If micropayment schemes ever actually gain traction, people will opensource the news. We can mashup twitter, youtube, blogs, and aggregators to get a reasonable approximation of the information that we get now. Granted, it would be much shorter form content. But since we mostly skim the news right now anyway, the user wouldn’t see much lost.
