BitPass: Micropayment That Seems To Work

Omega1045 writes "I have been following the story of BitPass for some time now. The micropayment solution provider has been featured on Slashdot before. That article focused on Scott McCloud, and his comic The Right Number. Since that story, BitPass has added a number of sites using their service. From this netizen, it looks like the idea is really taking off. Some news sources (NJ.com, SiliconValley.com) have noticed how this micropayment trend has progressed to include well known services like iTunes. I really like the idea of the artist getting a fair cut of the profits at BitPass."

Comments

Still...

[UPAAntilles]

It doesn't fix the fact that most people don't want to pay for internet content in any way, shape or form. Case in point- IGN. Even though that was subscription based, it's complete "collapse" as it were was caused by moving to the pay model. Fileplanet is having the same types of troubles, as their "exclusive" downloads quickly become not so exclusive. People aren't ready to move beyond advertiser supported web content in droves. It's too early.

Re:Still...

[worm eater]

It will certainly take time for the "internet = free" mentality to pass. Major services like Yahoo are gradually moving previously free services over to subscription models. iTunes (et al) are providing indications that people are willing to pay -- even though iTunes itself doesn't make money for anyone but the record labels, and in some cases, the artists. So yes, it will take a little while, but we'll get to the point where people think about it like television. Some people will pay a premium for the extras (cable) -- and some people will just stick with the standards (broadcast networks).

BitPass has a nice model in that they offer a wide range of options. You can charge for specific content, charge for subscriptions to changing content, or just take donations. If they play their cards right, they'll be the next PayPal.

Something on topic

[Omega1045]

Since the moderators, instead of simply leaving some happy comments alone are nailing me, I will add something very much on-topic.

I think "home grown" service like BitPass are just the key for up and coming artists. Offering a service at such a small amount of money is very marketable. This is possible for the artist because the they gets such a large portion of that take. On an average CD, the artist makes much less than a dollar. That is a very small percentage @ $12 to $15 for a new cd!

Imagine a YOUNG Metallica level artist on their way up. Instead of using traditional means, they offer their LP at $2, on BitPass via MP3. They make much more per album than they would through traditional means. They don't have to sell near as many albums to be a huge financial success, and continue to make their music or whatever.

Sounds like success to me! I can think of a few local bands that I wish were still around, but simply could not afford it. A succesful BitPass style service could have really helped them!

Pointless, and here's why

[SuperBanana]

We initially volunteered for the trial, but didn't bother once we heard of the terms- basically, 15%, same as paypal. Our users would have objected to keeping a balance they couldn't use anywhere else. Worse, we'd loose ANOTHER 15% because they(at the time) only supported PayPal for transferring funds. Worse, they only do the transfer when it gets to a certain size. Micropayments, macrotransfers, mean that not only are they ripping you a new one on the 15% fee, but they're ALSO getting your interest.

Call me silly and slap me stupid, but the point of micropayments was to make small payments economically viable. I don't call "three times a credit card processing fee" viable for what amounts to nothing more than a proxy service.

All Bitpass does is play "mini paypal", and that's neither original nor novel. Next, please. That technology involving random numbers+statistics looked far more promising....