I used to read The Times every single day of the week. I loved their sports coverage and it was my “go to” newspaper. Then the pay wall went up and I stopped reading. I didn’t stop reading because they were asking me to pay but I stopped because I really couldn’t be bothered adding in my credit card details and going through the sign up process. What the Times needed to get in order to get my custom was a one click solution that allowed me to make a micro payment without even thinking about it. It looks like Paypal could be about to launch that very system with word that the payment giant is about to have a stab at the micro payment market. I wanted to have a look at just how effective micropayments could be and if they could possibly help some of the struggling newspapers and content producers out there who are all scrambling around for a business model.
Reducing The Friction
Nobody wants to pay for content online because the friction of getting your credit card out is just too painful and time consuming. With a new solution where you pre-load you Paypal account and just click a button without evening thinking about it I think the chances of people paying for content increase massively. I still check the headlines every day on The Times but I don’t go in because of the friction but if I saw something that caught my eye at simply had to make a payment of a couple of cents then that is something that I might just do.
For this to work really well I think publishers will still have to give away a significant amount of their content for free. I can only really see people paying tiny amounts for the really special content that they can’t find elsewhere. Maybe a special live streamed show or a expert analysis from well known journalists. To make this business model really work publishers need to attract large volumes of people and then convert a small percentage of them in to revenue by enticing them to click through to the really good content via micro payments. Leer más “Can PayPal Micro Payments Save Newspapers And Other Content Producers?”