Posts Tagged ‘carrotpay’

Modified News Micropayment Model In Action

September 30, 2011

The theoretical idea that I and Jameson Hayes developed, PBS MediaShift wrote about and we presented at Texas is now a fully-vetted, peer-reviewed,  published scholarly journal article.

The Modified News Micropayment Model (for newspapers on the Social Web) is fully outlined in this International Journal on Media Management article (note: you have to pay to access the article- we are paid content advocates afterall!).
Now that our work is published, as we wrote in the piece, “the next logical step would be to test the model in local communities. Implementing the model concurrently with the design of firm-level strategic plans-of-action would make for compelling case studies, as well as test the viability and practicality of the concepts.”
That is our goal.  Of course, we are not developers, which is why it has been rewarding to see our key concepts become reality.  Hong Kong-based CarrotPay has come the closest to providing the technology to enable our model (based off of our work).  Whereas we introduced the theoretical contribution of microearn, they have dubbed this the much more industry marketable term Share-n-Earn.  This video below does an excellent job showcasing how microearn/Share-n-Earn for news can work using the CarrotPay digital purse.
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The birth, death and resurrection of micropayments

March 7, 2011

Are micropayments dead? They were never born.- Jeff Jarvis, blogger and CUNY J-school prof

My favorite panel at the paidContent 2011 conference was “Paying it Forward: Paywalls, Meters & Subscriptions,” which consisted of an all-star panel including Journalism Online Co-Founder (and former Wall Street Journal publisher Gordon Crovitz), Financial Times.com Managing Director Rob Grimshaw, Atlantic President Justin Smith and Google’s Director of Strategic Partnerships Jim Gerber.

Toward the end of the 50-minute talk, moderator Robert Andrews, UK editor for paidContent, asked a question about micropayments. Surprisingly, most of the panelists were dismissive of micropayments. Gerber, who has helped lead Google’s OnePass initiative, said they had not heard much interest in micropayments from the public because of the friction involved in transactions.

Despite early press materials indicating the inclusion of micropayments in its PressPlus platform, Journalism Online continues to primarily advocate for a metered freemium model.

“Down with paywall, up with freemium,” was Gordon Crovitz’ final salvo during the session.

Grimshaw told me after the conference that the Financial Times’ experiments with micropayments were unsuccesful, but I suspect that has more to do with the nature of its business content (in other words, people are still likely to seek out business news, rather than have it find them as is the case with other types of news in the social web environment).

If the expert panel is any indication, then mainstream newspapers appear to have given up any hope in trying out micropayments just two years after headlines proclaimed them as the way to “save newspapers.”

This, in my humble opinion, would be a huge mistake.  Just a year ago, my colleague Jameson Hayes and I outlined how micropayments could work for newspapers (opens PDF document) at the International Symposium on Online Journalism (a more advanced and refined version of that paper is in press in the International Journal on Media Management).

The bottom line is that the only way to tell whether micropayments will succeed as a viable model for online (and mobile and tablet) news is to try them.  As CUNY professor Jeff Jarvis tweeted during the conference, “are micropayments dead? They were never born.”

This isn’t entirely true.  As we point out in our paper, micropayments were tried in the late 90s and early 2000s to no avail. A 2000 Boston Globe article, for example, shouted “MICROPAYMENTS COULD BE THE WEB’S NEXT BEST HOPE.”  Flooz, Beenz, CyberCash, Bitpass, Peppercoin and DigiCash are a few examples of failed micropayment companies from what can be considered the Micropayment 1.0 era.

The difference between Micropayment 1.0 and Micropayment 2.0 is the emergence of the Social Web.  Newspapers may be  (wrongly) hesistant to adopt micropayments, but that does not mean they are not alive and well.

Micropayments have thrived for song and video downloads on iTunes, and micropayments are poised to become even more prevalent for digital goods, gaming and virtual currencies with big time players like Facebook (Buy with Friends)and PayPal (Digital Goods) enabling them.

Not all newspapers have given up on micropayments, either.  At 99 cents for a week’s worth of issues, The Daily is basically a subscription micropayment option.  Hong Kong-based CarrotPay also offers microsyndication technology for newspaper companies to enable seamless micropayments.

Mainstream American newspaper companies may be reticent to try micropayments as a new digital pricing strategy, but there are at least two other huge underserved markets that could experiment with the new business model. Non-American media markets are ripe for micropayments (Google’s OnePass is already in play in many European countries), as are community daily newspapers (under 50,000 circulation) and non-dailies.

Don’t write off micropayments for newspapers just yet.  Newspapers are perfectly poised to contribute in a big time way to the resurrection and rebirth of micropayments on the Social Web.  The models and technology are both in place.  All that is missing are willing newspaper partners.

Now is the time for newspapers to act.

Who to Watch in 2011

January 6, 2011

“Innovation” and “entrepreneurship” have become buzz words that are loosely jockeyed about when describing the changing nature of journalism.  You know, you’ll hear “newspapers are horrible innovators” on one side of the coin or “journalists need to develop an entrepreneurial spirit” on the other.  These words often appear again and again on both sides of the digital media debate.  The need for innovation, the need for experimentation among news organizations and traditional legacy media is clear; just as evident is the desire to develop new ways of thinking among would-be startups.  With that in mind, I wanted to provide a list of a few people and organizations worth watching this year for their efforts in social media, news, or digital content.  Some are familiar names and faces from conferences I’ve attended, while others are people I’ve never met. These efforts in entrepreneurship and innovation are worth keeping an eye on in 2011.  Any of these have the potential to be game -changers in a big way:

  • Ingmar Miedema: The Dutch businessman contacted Jameson Hayes and I about our Modified News Micropayment Model.  We’ve been in discussions with him about a number of ventures, including an effort to launch the model.  You’ll want to keep an eye on the Netherlands and Europe as Ingmar’s innovative platform comes alive this year.
  • CarrotPay: This Hong Kong-based company also has a “digital wallet” type technology that would enable many aspects of our model to work.  Ricky Rand’s company has been hard at work trying to get news organizations to use his innovative (there’s that word again!) software.
  • Jim Moroney & the Dallas Morning News:  We first heard Moroney speak at the International Symposium on Online Journalism last year. He said that newspapers must do something differently than the status quo and figure out ways to monetize content. The turn of the year brought action as Moroney unveiled new digital pricing structures for the Dallas Morning News.
  • Susanne Rust & HearSay: This Knight Fellow’s project is a social news game that combines points and a rewards system for news consumption on mobile devices, sort of a Foursquare of news.  Aside from a clear way to monetize the content, in many ways this platform would be a ripe avenue to launch the mobile modified news micropayment model we called for in our original paper (note: this opens a PDF).
  • Pinyadda: We really look forward to seeing what this Boston start-up has to offer because the concept of a personalized social news platform really resonates with myself and my micropayment co-author.  This site seems to harness many of the drivers of our model so we hope it is successful.
  • Krissy Clark: Another 2010 Knight Fellow, who studied the digital humanities during her time at Stanford and launched projects surrounding location aware storytelling.  As a former journalist, I love the use of social media to tell journalistic stories and the audacity that “you can click on the world.” Her website is storieseverywhere.org.
  • New York Times:  As the “The Gray Lady” moves its online content behind paywalls, the rest of the news industry will be watching and awaiting the results. I firmly believe that the Times’ effort to charge for content will succeed. Research I did with another University of Georgia colleague, Amy Sindik, found that Millennials were more likely to pay for the Times online than any other newspaper we studied (the Sindik & Graybeal article is in press in the Journal of Media Business Studies).  The Times‘ has a strong enough brand and reputation for quality journalism with content you simply cannot get anywhere else. These are factors that will influence consumers’ willingness to pay for digital content. Nevertheless, the Times experiment could be a harbinger for the rest of the industry considering paywalls and paid content strategies.
  • PayPal: The largest site for electronic commerce has added micropayments and partnered with Facebook. This could go a long way in increasing the popularity and use of micropayments.
  • Other Knight Fellows:  Quite a few of the 2010 Knight Fellows worked on projects with synergies to our work. John Duncan developed audionewspaper.com as an effort to find a way to get people to pay for content, chiefly radio news reports. Andrew Finlayson studied mobile, video, social media and the Semantic web and chronicled his search for a new viable business model on adigitaljournalist.com, while Gabriel Sama’s Thinking Strategically slides (note: links to a PDF) are worth taking a look at (his “DNA of a publication” on slides 43 and 44 is spot on).  We have a hunch that some of these Fellows’ efforts will prove fruitful and that more could come to fruition as a result. We look forward to seeing what else they accomplish and produce in the digital media, journalism and social media realms.
  • John Paton: The CEO of the Journal Register Group has been leading the digital-first charge for newspapers.  Like Moroney, we saw Paton speak at the International Symposium on Online Journalism last year.  He’s an energizing force in an industry often assailed for inertia, a leader not afraid to make sweeping changes. He’s had success with his in 2010 and will be worth following to see if he can duplicate his successes in 2011.

There are many other great minds, dynamic personalities and driven companies hard at work whose efforts could radically alter the Internet and our online media consumption habits as we know them. I, for one, am excited about what changes are in store in 2011, whether they originate from one of the above or not. I look forward to seeing what the new year has in store for social media, journalism and paid digital content strategies. Feel free to join in the conversation and add to the list.