Date post: | 07-May-2015 |
Category: |
Economy & Finance |
Upload: | kachingle |
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Micropayments for
Digital Goodsin a
Social World
Presentation for EuroFinance 2009
by Cynthia Typaldos, Founder & President, Kachingle
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For news and content sites, advertising is not paying the bills.
The Problem
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Theorem
Anything that can be digitized will be
napsterized
Newspapers
Magazines
Books
Music
Photos, Images, Art
Video, TV, Movies
10001001010011001001000100101111100011001010001010010100010000100000…
FREE!Previously -
$$$$ or € or ¥ or..
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Micropayments sound good BUT…
“…the act of buying anything, even if the price is very small, creates what Nick Szabo calls mental transaction costs, the energy required to decide whether something is worth buying or not, regardless of price.”
“… beneath a certain threshold, mental transaction costs actually rise, a phenomenon is especially significant for information goods. It's easy to think a newspaper is worth a dollar, but is each article worth half a penny? Is each word worth a thousandth of a penny? A newspaper, exposed to the logic of micropayments, becomes impossible to value.”
— Clay Shirky
http://www.shirky.com/writings/fame_vs_fortune.html
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vidu
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/ use
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oduc
erWh
ose
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ed?
Ease of use (reduction in “mental transaction costs”)
difficult effortless
Micropayments Decide each time At price set by producer No financial limits Encourages copycat sites Creates barriers for viral & social
behaviors Negatively affects ad revenue
beside advertising…what are the choices?
Decide each time At a price explicitly set by user No financial limits Co-exists with advertising Enables viral & social behaviors
Tipping
Subscriptions Decide once (for each subscription) At price set by producer No financial limits Encourages copycat sites Negatively affects ad revenue Creates barriers for viral & social
behaviors
Kachingling Decide once (for everything) At a price implicitly set by user
(equitably distributed) Financial limits (bounded total $) Co-exists with advertising Enables viral & social behaviors Social recognition & association
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How Kachingle “Automates” Micropayments
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Are there parameters for success in the implementation of consumer
micropayment systems?
user-centric
no “mental transaction costs”
tap into existing social networks
financial transparency
fun, entertaining, like a game
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What will consumers pay for (using micropayments)?
Persona development (and control) [Kachingle]
Convenience [iTunes]
Special Features [Game tool upgrades]
Virtual Goods [Facebook flowers]
Other?