Paying For Content - A Dilemma
May 8th, 2009Recent news around the internet has focused on forcing users to pay for content, as information giant Rupert Murdoch has declared that within a twelve month period his network of websites will charge for access. Nothing creates more controversy on the internet than taking away the ability of users to get what they want for free. It’s akin to kicking them in the shins, and they are having none of it.
Comments on the issue from users generally have a single theme: content should be free. More so, that they should be able to run ad blocking software, thus removing all hope of monetizing that user. The site creates the content, pays for other people access it, and then recoups no money. That is a difficult proposition.
However, this is how large swaths of the internet work, with limited to no monetization opportunities. This is a subject of constant debate in the midVentures headquarters, and there is no consensus. Some of us feel that information must be open to all, and some of us know how a budget works.
Either way, it is going to be a very interesting year, especially if Rupert goes through with his plan. If he does use the nuclear option, expect the internet to be changed forever, in a way that you might not like. What do you think?







There comes a point where it’s simple math. Revenue has to be higher than expenses or the operation is not sustainable. The saturation of ads is a model that offers diminishing returns with users ignoring the interruption. One thing that does not change is paying without hesitation for perceived value. How does one do that with content that is not valued enough to pay for it? First principle: I value what I need or find useful. How is that done without creating yet a greater divide between the informed and the uninformed, the educated and the non-educated, the haves and the have-nots. Answer: create categories of relevance. General information is free. Specialized information is charged. If the charge is on a per need basis I’m ok with that. If the charge is low I don’t hesitate. This would create a new online economy and markets. Would a person pay $0.25 for an article of interest? Would a person eventually subscribe if the cost was lower than buying multiple articles? (This is a greater conversation). Perceived value is the key.