Slashdot Mirror
End of the Free Internet
efedora writes: "The End of Free keeps a list of the various transitions to paid services from free net sites. The list is getting longer. When I think of an individual site that's really worthwhile I say to myself, "Sure, that site is worth $4.95 a month". The problem is there are going to be lots of sites at $$$ a month and it sure adds up." Of course even Slashdot is planning on rolling out subscriptions-for-no-banner-ads sometime soon, so I suppose we're not entirely immune to the subscription bug either.
I suspect we'll eventually see editorial services that combine a large group of websites under one payment plan. For example, slashdot would have a hard time going pay, but, say if all andover's websites went to a subscrption, costing $2/month for unlimited access for everhting, they would probably fill a few pockets.
Also, I'll bet money that after people begin feeling comfortable with paying for content, the ads will come back. It's just the nature of the beast.
The Internet is generally stupid
Going through The End of Free, I found one site, Netsurfer, that posted a pretty good explanation of why they were shifting to a subscription model.
To recap my understanding of the issue, regular print periodicals are either completely paid for by users (mostly books, and your more distinquished journals), or by a combination of user fees and ad fees (most magazines and newspapers). A few periodicals get by purely on advertising (Village Voice, for instance)
It should be noted that in the mixed fee case, advertising provides the vast majority of revenue. Subscription fees pretty much are just used as a signal to advertisers that people are actually reading, and therefore willing to pay for, a magazine.
Since online pubs can completely verify readership, the signalling aspect of subscrber fees should have been rendered unnecessary. Also, since distribution of online content is cheaper than regular paper pubs by several orders of magnitude (though certainly not free, as was once touted), online pubs were thought to have an advantage over offline pubs in that regard.
Somewhere along the line, this new paradigm has, at least temporarily collapsed. I suspect a lot of it has to do with poor understanding of market forces and implemantation rather than the ultimate unfeasability of ad-supported, free online content.
evanchik.net
The big question is, will all the non-paying users have to deal with more annoying and intrusive ads if they don't subscribe? I don't care about the ads at the top either, because for one simple reason: Slashdot (OSDN) has managed to keep their ads to the point, and for the most part, advertise legitimate companies that are directed towards geeks. (Rackspace, ThinkGeek, etc..). I'm not subjected to "pre-approved visas" and "punch the monkey" type bullshit ads. I also like ThinkGeek's new products that come through on the ads - it saves me time from browsing through their site to see if anything is new. Advertising can be a good thing if utilized appropriately. I have no doubt if there's any truth to this Slashdot subscription thing, that it will fail miserably.
The way Downside views this data, it's not when the company dies, it's when the stockholders die. And they're already dead; the stock is down 99% (yes, 99%) from its peak. There are ways a company out of cash can continue to operate, (dilute, take on debt, sell off assets) but they're all terrible for the stockholders.
Charging for Slashdot looks like a last-ditch effort to give that asset some value for resale.
I've finally come to a revelation about banner ads.... of course I came to this conclusion a while ago, but have yet to say anything here:
Banner ads, the idea behind them, does work. The problem is that people have come to the decision that they will only pay for banner ads that are quantifiable... I.E. Click Throughs.
This is not, and should not be the case. Banner ads should be sold on the number or visits on a site, and the popularity of the site.
Just like advertisers want to be seen during superbowl.... Why? Many, many eyeballs. So their willing to pay a hefty price!
I don't see a comercial during the superbowl and go... "Whoa... I gotta have that!" and then leave to go to the store.... NO! I finish watching the superbowl and then at a later date, with the proverbial commercial seed planted in my brain, I go and purchase that product.
The same goes for banner ads. It's a form of advertisement. I'm not going to drop everything to go and head over to that site..... I'm here at slashdot or where-ever for a reason. I'll do what I have to, and then later.... When I'm not too busy.... I'll head over to thinkgeek and buy that hat.
Yes I purchased many a thing at ThinkGeek and elsewhere, because of banner-ads (I would not have known about them otherwise) but I have NEVER purchased anything by means of a click-through.
So in quantifiable means, the banner ad didn't work. There was a click through but no purchase.
Ah, but I did purchase. Just at a later date.
I can't stress this fact enough.... We do not drop everything when we see a tv ad and head to the store... we do it later. Does this mean because we didn't drop anything that TV ads are failing?
Time for a philosophy change.
www.slightlycrewed.com - Because aren't we all?