How Paypal Can Help Save Media—And Itself http://bit.ly/ddotgG similar to Techdirt’s CwF+RtB=profit. (Probably a truth if from 2 sources)
The essence of the article is that:
I wrote recently that there is an easy formula for consumer spend on media:
Desire + Relationship + Ease = Spend
What struck me with that was the similarity between Ben Elowitz understanding of the future of media and that at techdirt.com. Techdirt expresses it as:
CwF + RtB = profit.
Connect with Fans (build audience/followers) and give them a Reason to Buy and they will buy stuff.
The ease of purchase is of course what we were trying to achieve with klickTab/Open TV Network: one of the easiest ways to get media is via RSS and we added in a commerce engine to make the process of paying for digital downloads much easier. Maybe PayPal can make it easy enough.
With ad revenues going less far to foot the bill for published content, making media profitable will increasingly mean turning to consumers to pay for content and experiences. And consumers open their wallets in proportion to how badly they want it (desire); how well they know the other parties (relationship); and how little work it takes (ease). This is why there is such a strong future in bite-size media consumption: for all the talk about paywalls and subscriptions, it is far easier to get payments of a buck or two. Apple (NSDQ: AAPL)demonstrates the value of bite-size with hundreds of millions of dollars of revenues from apps alone, far exceeding any leading online publisher’s subscription programs.