Forums: Discussions for entrepreneurs and small business.

Granted, we already do via our ISP`s, but what about paying for content?

I was just handed a Time magazine article talking about the newspaper industry, print in particular, and how they`re going to have to shift to the web, but how do they monetize it?

The author suggests that if a simple one-click payment system were developed similar to the easy purchasing of iTunes music, readers might find it less painful to pay a penny or nickle per article or maybe even per click.

This idea intrigues me greatly because of my little online news site here in my town and our rough times of monetizing it via advertising.

I`m a bit "on the fence" with this idea, but it is interesting to think about...

It`s not only an interesting question, but I think a key question for the next decade: How do we make money on the Web?

From what I`ve come to understand, the underlying problem isn`t the Web or business models. Instead, it`s a paradigm shift in the basic culture.

We have a generation (almost) of people who`ve grown up with the emergence of the Internet and Web. In the beginning, the whole idea was free distribution of information. As ecommerce took hold, real value became the only reason anyone would pay anything at all.

The result of iTunes has been to almost completely re-think the historic concept of intellectual property rights, value, and fee-for-service. Above a certain age, people think music should be paid for. Below that age, music should be free.

Information, like news, is right in there with art. It may not seem like it, but both are intangible, both take skills, both take tangible resources to produce, and so forth. And yet, the Web has a sort of basic assumption of "free information."

Unless the newspapers come up with real value (and that`s the entire discussion of markets, perception of value, objective value, etc.), I don`t believe they`ll be able to survive with a paid service. At least, not in their current models.

It`s not only an interesting question, but I think a key question for the next decade: How do we make money on the Web?
Agreed. The answer right now is of course paid advertisements and with better target marketing (i.e. AdSense & Facebook) I think that will attract more users to the idea of paying for online advertising. But again, will that stay the same in 5 years? 10? 20?

In the beginning, the whole idea was free distribution of information. As ecommerce took hold, real value became the only reason anyone would pay anything at all.
I agree with the eCommerce comment, but really in the beginning it cost just to BE online. I think if I remember correctly, I was paying something like $0.25 a minute? I think eCommerce and Napster-like situations is what really forced the "free for everyone!" issue.

Unless the newspapers come up with real value (and that`s the entire discussion of markets, perception of value, objective value, etc.), I don`t believe they`ll be able to survive with a paid service. At least, not in their current models.
And that`s the key phrase - "current models". They won`t succeed with those models, but will almost have to reinvent themselves. I think much in the same way radio had to with the emergency of television.

Here`s another useful point, regarding Sirius going bankrupt. A few years ago, when the satellite radio company got started, Internet radio was also in its infancy.

The model was cable television, where people would pay a membership fee to Sirius, buy a "converter box" and then have no commercials. Another advantage was clear signal, and no station-loss for long-distance drivers.

Cable TV began the same way, but greed and profit demands eventually brought as many commercials to cable as with over-the-air broadcasting.

Sirius hasn`t had the chance to add in commercials. Instead, Internet radio and wi-fi connections have produced a free competitor. We already have technology to access Web radio via cars and at home, so why pay any money at all for Sirius?

The key problem is that SOMEBODY has to come up with the money to contract with real talent. That may be a Limbaugh, Stern, or Dr. Laura, it doesn`t matter, but "free" access begins with original content.

In other words, you can copy for free, but you rarely can create something original for free. However; with so much content available, and so many large corporations still paying the contract prices, it`ll take awhile for those who want free content to drive everyone out of business.

Meanwhile, perceived value still rests at the bottom of the entire chain of reasoning.

About a month ago there was a talk radio show on some odd station I was listening to [talk radio, news type] and they were talking about this issue. How do newspapers, and news channels plan on monetizing when everything you can think of is already online and for free.

Although, advertising is the most common way of staying in business, this year they are going to try to more towards, having a separate section specifically for paid subscribers. I don`t know what that entails, but they did mention something about having a vast variety of news coming from different directions and free-lance reporters.



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Edgar Monroy
Web Developer / Owner / Consultant
When starting your own business the need to "know-how" is greater than money!
http://www.nuevolution.net

Rush Limbaugh has done something similar, where anyone can visit the Web site and view the main stories, daily show notes, and get transcripts of just about everything.

But there`s also a paid subscription area that offers added value. There`s video, downloadable podcasts, and email access. If you`re not a paid subscriber, you can`t email your rants. But if you are, then you have email.

So first, there have to be enough people really interested in the main product itself. They`d have to want to really read the Wall Street Journal or New York Times. Then, if they have that interest, the paid content has to truly have an added value.

Yet at the same time, there has to be enough content on the "free" side that people will be attracted as new customers, discovering the WSJ or NYT for the first time, and becoming interested in going further.