More on MPEG4

ratajik writes: "Salon is running a story about how MPEG-LA (the alliance of companies in charge of licensing MPEG4) are planning on charging .25 cents for each copy they sell, and a .02 cent an hour "use fee" for anyone viewing MPEG4. They have a interesting slant on how this will make open-source alternatives much more attractive, and will likely kill off use of the MPEG4 standard in the long run."

Comments

Pay-per-view, pay-per-use, micropayments, etc.

[Shiny Metal S.]

Buncha bullcrap. I'm tired of this crap that tries to wring money out of you for time spent doing something. Subscription software, pay-per-minute viewing/listening, and the like.

This pay-per-view crap won't work, for the same reason as other micropayment ideas. See The Case Against Micropayments, my emphasis:

(...)

Micropayment systems have not failed because of poor implementation; they have failed because they are a bad idea. Furthermore, since their weakness is systemic, they will continue to fail in the future.

Proponents of micropayments often argue that the real world demonstrates user acceptance: Micropayments are used in a number of household utilities such as electricity, gas, and most germanely telecom services like long distance.

These arguments run aground on the historical record. There have been a number of attempts to implement micropayments, and they have not caught on in even in a modest fashion - a partial list of floundering or failed systems includes FirstVirtual, Cybercoin, Millicent, Digicash, Internet Dollar, Pay2See, MicroMint and Cybercent. If there was going to be broad user support, we would have seen some glimmer of it by now.

Furthermore, businesses like the gas company and the phone company that use micropayments offline share one characteristic: They are all monopolies or cartels. In situations where there is real competition, providers are usually forced to drop "pay as you go" schemes in response to user preference, because if they don't, anyone who can offer flat-rate pricing becomes the market leader. (See sidebar: "Simplicity in pricing.")

Why have micropayments failed? There's a short answer and a long one. The short answer captures micropayment's fatal weakness; the long one just provides additional detail.

The Short Answer for Why Micropayments Fail

Users hate them.

(...)

Read the rest of this article, very good stuff. I won't ever use pay-per-view and any other micropayments. For the same reason as I prefer a flat fee for my DSL instead of pay-per-use fee for every email I send or every website I visit, etc.

Having Flashbacks of GIF

[ebresie]

Isn't this the whole thing that happen with the GIF format...someone started trying to make money off of it and then people started using jpeg, png,etc to overcome it.

Oh well, I guess in the end, they have to make money, but shouldn't it be up to the makers that implement the cost concerns and not the patent holders?