The Transaction Toll Occupation Of Paper Micropayments
The wishing to monetize online intelligence is leading unopen to to enthusiastically promote micropayment systems. Influenza A virus subtype H5N1 unwrap of the leading paper sites are leaning toward a cooperative payment organization that volition permit readers to role a unmarried occupation concern human relationship to access fabric at the leading papers. Such a organization volition non last technically hard to implement, but getting the cost correct volition last a pregnant challenge because of transaction costs together with pregnant differences inwards the economical value of articles.
To create the best manufacture broad effects, a micropayment payment organization would ask to include every bit many papers every bit possible (see "The Challenges of Online News Micropayments together with Subscriptions" https://scrapworld-scrap2day.blogspot.com//search?q=challenges-of-online-news-micropayments). The fact that a consortium is currently existence sought exclusively amidst the major players illustrates, however, that such a organization would last cost inefficient because content from smaller papers would attract fewer transactions together with last to a greater extent than expensive to service.
A widely inclusive organization would run into the problems of small-scale payouts that have got plagued collecting rights societies for authors, composers, together with performers. Those systems have got institute that the costs of managing transactions, accounting together with auditing, together with conveying funds to rights holders incur higher expenses than the payments due many rights holders together with that such a organization is possible exclusively when the rights holders together with content that generate the most transactions subsidize those that generate the least.
This occurs because each correct must have got a divide account, uses of all rights must last monitored together with recorded, funds must last collected, expenses for accounting, auditing together with other administrative costs paid, together with funds must last transferred to recipients. These activities incur pregnant transaction costs.
Even a cooperative organization express to newspapers that attract the largest unwrap of customers volition run into transaction cost challenges.
In unmarried content sales systems, for example, the cost of making transactions takes upward the volume of the price. In the sale of mobile telephone ringtones, for example, the composer, arranger, together with performer larn exclusively almost 20% of the price. For digital vocal downloads everyone associated amongst the content--songwriter, arranger performers, together with tape company--receive less than half. This occurs because merchant together with fiscal transaction costs are real high. The cost for using a credit carte du jour adds five to vii share to merchant costs together with the expense for banking concern processing of each transaction is a minimum of almost 25 cents. Even electronic fund transfers betwixt banking concern accounts incurs almost xxx cents inwards transaction costs.
These realities volition deport on the construction together with pricing of paper article micropayment purchases. The most efficient organization for users together with firms volition require the role of prepaid client accounts to cut back the unwrap of banking concern organization transactions. This volition permit users to transfer funds to their accounts together with and then purchase articles at pennies a piece. Funds collected would last together with then periodically transferred to papers. Such a organization could too include the selection for occasional users to brand credit cards purchases of articles, but the cost would have got to last $2 to $10 per article to arrive worth the effort.
The biggest pricing challenge, however, is that unopen to articles volition last to a greater extent than valuable than others together with volition last most sought later yesteryear consumers. This agency newspapers volition have got to figure out BEFOREHAND which stories autumn into those categories together with they volition have got to create upward one's heed what prices to accuse for them. Papers volition have got to hire personnel to test to figure out earlier publication which are the most economically valuable stories--something that volition last extremely hard to do--or they volition have got to ready prices based on the costs invested inwards creating each storey (something electrical flow paper accounting systems hit non support). In either case, increased costs volition result. The exclusively other reasonable selection is to ready prices per article based on the overall average cost of producing an article or a column inch of editorial copy. This, of course, over together with nether prices content simultaneously.
Moving to a micropayment organization is non exactly a affair of starting to accuse for content online, but involves changing the cardinal occupation concern model of papers. Newspapers have got historically bundled all content into 1 production available at a unmarried price. In retailing, bundling has ever worked best for getting consumers to purchase to a greater extent than of the production at a lower cost than if bought individually. With this tactic the producer gains turn a profit because the costs of distribution together with sales are collectively lower. Influenza A virus subtype H5N1 instant tactic involves bundling products of unequal or uneven value that are sold together to attain a articulation cost that is higher than would have got been obtained individually.
Newspapers have got historically benefited from such bundling yesteryear filling pages amongst relatively cheap intelligence agency together with syndicated content together with yesteryear including huge amounts of data culled from world sources that did non require pregnant investment of resources or added value. Unbundling together with selling private articles amongst a micropayment organization volition hit trivial consumer willingness to pay for this type of content--a pregnant occupation because it is the volume of editorial content inwards most newspapers today. Unbundling volition too increment transaction costs, therefore reducing profitability. This volition strength higher prices on consumers that volition deport on demand.
Disaggregating the paper together with making to a greater extent than coin off unopen to private articles volition too create pull per unit of measurement area for additional payments from journalists who write the most valuable articles. This volition too increment costs of the micropayment system.
Making coin from online journalism is, thus, non exactly a affair of maxim "Let's all firstly charging." It volition require cardinal rethinking of the value chain, what content is offered, together with how it is produced. It volition too require pregnant idea almost what's inwards it for consumers--something that is glaringly missing from electrical flow discussions of starting online payments. The consumer challenge is peculiarly salient because most online intelligence readers hit non currently purchase newspapers. If they are non willing to pay for intelligence inwards print, why volition they all of a abrupt last willing to pay for that same intelligence online? If papers can't figure that out, no conclusion to implement micropayments volition destination happily.
To create the best manufacture broad effects, a micropayment payment organization would ask to include every bit many papers every bit possible (see "The Challenges of Online News Micropayments together with Subscriptions" https://scrapworld-scrap2day.blogspot.com//search?q=challenges-of-online-news-micropayments). The fact that a consortium is currently existence sought exclusively amidst the major players illustrates, however, that such a organization would last cost inefficient because content from smaller papers would attract fewer transactions together with last to a greater extent than expensive to service.
A widely inclusive organization would run into the problems of small-scale payouts that have got plagued collecting rights societies for authors, composers, together with performers. Those systems have got institute that the costs of managing transactions, accounting together with auditing, together with conveying funds to rights holders incur higher expenses than the payments due many rights holders together with that such a organization is possible exclusively when the rights holders together with content that generate the most transactions subsidize those that generate the least.
This occurs because each correct must have got a divide account, uses of all rights must last monitored together with recorded, funds must last collected, expenses for accounting, auditing together with other administrative costs paid, together with funds must last transferred to recipients. These activities incur pregnant transaction costs.
Even a cooperative organization express to newspapers that attract the largest unwrap of customers volition run into transaction cost challenges.
In unmarried content sales systems, for example, the cost of making transactions takes upward the volume of the price. In the sale of mobile telephone ringtones, for example, the composer, arranger, together with performer larn exclusively almost 20% of the price. For digital vocal downloads everyone associated amongst the content--songwriter, arranger performers, together with tape company--receive less than half. This occurs because merchant together with fiscal transaction costs are real high. The cost for using a credit carte du jour adds five to vii share to merchant costs together with the expense for banking concern processing of each transaction is a minimum of almost 25 cents. Even electronic fund transfers betwixt banking concern accounts incurs almost xxx cents inwards transaction costs.
These realities volition deport on the construction together with pricing of paper article micropayment purchases. The most efficient organization for users together with firms volition require the role of prepaid client accounts to cut back the unwrap of banking concern organization transactions. This volition permit users to transfer funds to their accounts together with and then purchase articles at pennies a piece. Funds collected would last together with then periodically transferred to papers. Such a organization could too include the selection for occasional users to brand credit cards purchases of articles, but the cost would have got to last $2 to $10 per article to arrive worth the effort.
The biggest pricing challenge, however, is that unopen to articles volition last to a greater extent than valuable than others together with volition last most sought later yesteryear consumers. This agency newspapers volition have got to figure out BEFOREHAND which stories autumn into those categories together with they volition have got to create upward one's heed what prices to accuse for them. Papers volition have got to hire personnel to test to figure out earlier publication which are the most economically valuable stories--something that volition last extremely hard to do--or they volition have got to ready prices based on the costs invested inwards creating each storey (something electrical flow paper accounting systems hit non support). In either case, increased costs volition result. The exclusively other reasonable selection is to ready prices per article based on the overall average cost of producing an article or a column inch of editorial copy. This, of course, over together with nether prices content simultaneously.
Moving to a micropayment organization is non exactly a affair of starting to accuse for content online, but involves changing the cardinal occupation concern model of papers. Newspapers have got historically bundled all content into 1 production available at a unmarried price. In retailing, bundling has ever worked best for getting consumers to purchase to a greater extent than of the production at a lower cost than if bought individually. With this tactic the producer gains turn a profit because the costs of distribution together with sales are collectively lower. Influenza A virus subtype H5N1 instant tactic involves bundling products of unequal or uneven value that are sold together to attain a articulation cost that is higher than would have got been obtained individually.
Newspapers have got historically benefited from such bundling yesteryear filling pages amongst relatively cheap intelligence agency together with syndicated content together with yesteryear including huge amounts of data culled from world sources that did non require pregnant investment of resources or added value. Unbundling together with selling private articles amongst a micropayment organization volition hit trivial consumer willingness to pay for this type of content--a pregnant occupation because it is the volume of editorial content inwards most newspapers today. Unbundling volition too increment transaction costs, therefore reducing profitability. This volition strength higher prices on consumers that volition deport on demand.
Disaggregating the paper together with making to a greater extent than coin off unopen to private articles volition too create pull per unit of measurement area for additional payments from journalists who write the most valuable articles. This volition too increment costs of the micropayment system.
Making coin from online journalism is, thus, non exactly a affair of maxim "Let's all firstly charging." It volition require cardinal rethinking of the value chain, what content is offered, together with how it is produced. It volition too require pregnant idea almost what's inwards it for consumers--something that is glaringly missing from electrical flow discussions of starting online payments. The consumer challenge is peculiarly salient because most online intelligence readers hit non currently purchase newspapers. If they are non willing to pay for intelligence inwards print, why volition they all of a abrupt last willing to pay for that same intelligence online? If papers can't figure that out, no conclusion to implement micropayments volition destination happily.
The Transaction Toll Occupation Of Paper Micropayments
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Reviewed by Dul
on
August 22, 2009
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