Google To Offer Micropayments To News Sites
CWmike writes "Google is promoting a payment system to the newspaper industry that would let Web surfers pay a small amount for individual news stories, an idea that could help publishers struggling with the impact of the Internet. The plans were revealed in a document Google submitted to the Newspaper Association of America (NAA), which had solicited ideas for how to monetize content online, a task some publishers have had difficulty with. 'The idea is to allow viable payments of a penny to several dollars by aggregating purchases across merchants,' Google said in the document. Google said it had no specific products to announce yet."
Let me start by paying nothing for this one, I'll gladly give Murdoch even less.
If you think someone isn't free to have a different definition of "freedom" you may be a tyrant.
Since they're getting paid already, that means the banner and intrusive flash ads on news sites will stop, right?
(Sure it will)
Why not? As long as the process is quick and painless and the cost low enough (i.e. a few cents), I wouldn't mind that one click to read the full article with images and everything (and without ads).
It's similar to the model of those boxes containing a stack of newspaper to which you get access by inserting a quarter or two. Of course, one could get the whole stack and distribute it for free; but in reality most people will just get one paper (i.e. read the article) and get on with their lives.
Considering the price of a paper copy of a newspaper and the number of articles in it, the right price of a single piece of news could be 0.01 cents or less (EUR or USD, it's about the same if we look at the order of magnitude). However if we think that the same piece of news can be replicated infinite times with zero marginal costs of production, the price of a single copy goes down quickly to zero. Surprisingly, the more interesting is the piece of news (and so more read/replicated), the less it should cost. Basically newspapers are facing the problems of the music industry: they found themselves selling a product with suddenly no costs of reproduction and they are resisting the urge of finding a new business model or disinvest and move to another market (I mean the labels/editors, the artists/writers are locked into doing what they can do).
The problem is I don't trust the computer with my money. Even though I might be willing to pay a reasonable small amount for some articles, I do not trust linking my payment information to a mouseclick.
There's been many stories of people running up astronomical phone bills because their phone used costly services in the background with no easy means of knowing what it is doing and what it is costing. I need to be assured that the computer will never run amok with my money - or worse - rack up bills on credit that I then have to pay, whether or not I might have had the money for it.
There is needs to be a built-in stop. In real-life, for example, paying cash, it is very hard to accidentally spend without knowing that you are spending and how much. Even paying by credit card, the bank will call and verify if there's a unusual series of transactions, which serves to limit the financial damage in the event of a "bug". Micropayments needs to solve this problem (for example, by using pre-issued time-time-use cryptographic tokens in lieu of serial-numbered bills) before I am comfortable trusting financial access to a general-purpose web-browsing computer. I suspect I'm not the only one who feels this way.