I think people just like to buy stuff and if it's stuff they couldn't buy before, they like that best of all.
Of course, Unfogged is also moving to a pay-to-read format (our "read more" button will point directly to PayPal). We haven't worked out the details, but we anticipate that the fee structure will range from a dime-a-dozen for Ogged's postings to twelve cents per dozen for the rare Unf works. I trust our trusty readers can calculate the price of Bob's posts.
Interesting arguments against micropayments for content here and here. Crux of his argument is that micropayments have failed, and will continue to fail, because the mental transaction costs of having to think about a micropayment dwarf the cost of the payment itself. So users hate them more than the cost alone would indicate. Given that incremental supplies of digital media are hardly a scarce or costly resouce (quite the opposite), micropayments are imposing a big hassle for little gain.
If you accept this argument, you believe that most publishing will be vanity blogging (oh vain Ogged...) or packaged into a subscription aggregating multiple providers (a la traditional magazines, AOL, or something new yet to come).
Another economic flaw with paying for content bit by bit is that it is a classic "experience good", where you can't know the value of each item until you actually have purchased it & experienced it. Someone recently patented a "post-pricing" business model to solve this problem, but -- oh man! -- the mental transaction costs really mount up in a system like that.
Basically, how many times you pay figures disporportionately in your calculation of how much you're paying (I just made that up, but I'm sure it's true).
But what about Apple's Music Store, which, as I found out when I sat in front of a Mac a couple of weeks ago, is fantastic?
People do seem to love iTunes, although the selection is still too limited.
What about iTunes, though? People have long had the problem of not wanting to buy music before hearing it first. Wanna bet that 80% of iTunes tracks purchased have previously been heard by the purchaser?
Also, the ticket price on iTunes is higher than what is discussed in most micropayment schemes -- they're almost always concerned with sub-$0.25 transactions.
It may be different for music, it's true. For one, as you say, it's a different pricing tier and music can be sampled before it's purchased (one of the things I loved about iTunes was that I could listen to a full quality clip of the song for free).
"Can you believe we let you read these posts for free?"
It _does_ strain the limits of credibility :)
How old (or new) is this site?
Posted by Invisible Adjunct | Link to this comment | 09- 8-03 8:51 PM
It started on July 4.
I think people just like to buy stuff and if it's stuff they couldn't buy before, they like that best of all.
Of course, Unfogged is also moving to a pay-to-read format (our "read more" button will point directly to PayPal). We haven't worked out the details, but we anticipate that the fee structure will range from a dime-a-dozen for Ogged's postings to twelve cents per dozen for the rare Unf works. I trust our trusty readers can calculate the price of Bob's posts.
Posted by ogged | Link to this comment | 09- 8-03 9:02 PM
Interesting arguments against micropayments for content here and here. Crux of his argument is that micropayments have failed, and will continue to fail, because the mental transaction costs of having to think about a micropayment dwarf the cost of the payment itself. So users hate them more than the cost alone would indicate. Given that incremental supplies of digital media are hardly a scarce or costly resouce (quite the opposite), micropayments are imposing a big hassle for little gain.
If you accept this argument, you believe that most publishing will be vanity blogging (oh vain Ogged...) or packaged into a subscription aggregating multiple providers (a la traditional magazines, AOL, or something new yet to come).
Another economic flaw with paying for content bit by bit is that it is a classic "experience good", where you can't know the value of each item until you actually have purchased it & experienced it. Someone recently patented a "post-pricing" business model to solve this problem, but -- oh man! -- the mental transaction costs really mount up in a system like that.
Just my $0.02. :-P
-Magik
Posted by Magik Johnson | Link to this comment | 09- 8-03 9:38 PM
Basically, how many times you pay figures disporportionately in your calculation of how much you're paying (I just made that up, but I'm sure it's true).
But what about Apple's Music Store, which, as I found out when I sat in front of a Mac a couple of weeks ago, is fantastic?
Posted by ogged | Link to this comment | 09- 8-03 9:43 PM
People do seem to love iTunes, although the selection is still too limited.
What about iTunes, though? People have long had the problem of not wanting to buy music before hearing it first. Wanna bet that 80% of iTunes tracks purchased have previously been heard by the purchaser?
Also, the ticket price on iTunes is higher than what is discussed in most micropayment schemes -- they're almost always concerned with sub-$0.25 transactions.
-Magik
Posted by Magik | Link to this comment | 09- 8-03 9:53 PM
It may be different for music, it's true. For one, as you say, it's a different pricing tier and music can be sampled before it's purchased (one of the things I loved about iTunes was that I could listen to a full quality clip of the song for free).
Posted by ogged | Link to this comment | 09- 8-03 9:55 PM
Or maybe there's a mind-control device implanted in every iPod...
Posted by Magik | Link to this comment | 09- 8-03 10:06 PM