In this WIRED article Pat Kenealy, the CEO of International Data Group discusses a web revenue model that moves towards paid content - using TV as the analogy, noting how it moved from a free broadcast model in the fifties to a paid cable / satellite environment. Pat argues that that proper implementation of micro-transactions will enable a gated content model.
As online publishers, we have become much too reliant on advertising revenue streams, a move towards paid, premium, high quality content will be very welcome.
However I guess with the acquisition of mySpace by News Corp - many independent bands are now associated with a major media label !
The problem is, we've been hearing about micropayment systems for years and years, with no real success stories to speak of. The idea that web publishers can except small payments for individual articles is great, but what payment processor is going to facilitate this at a rate that makes sense for publishers? Perhaps the Google Wallet will be the knight in shining armour that publishers have been waiting for. We'll see.
Posted by: Baron | July 22, 2005 at 09:45 AM