alt Hacker NewsMicropayments as a reality check for news sites
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I have a patent on micropayments for the Web from 1996. 30 years later, the situation hasn't changed and Clay Shirky or Andrew Odlyzko's arguments around the mental cost of microtransactions remain valid. Besides subscriptions to individual publications, the only model that would work is a Spotify-like subscription for a bundle of sites, with the revenue shared according to page views (or better, some metric that does not reward clickbait).
If they don't want to be stiffed on royalties like how musicians get pennies from Spotify, news sites will need to establish some sort of co-op to host this, and not rely on the likes of Meta or Apple, as tech companies have proven treacherous to the news biz many, many times before.
I get the sentiment but micropayments just don’t work - the main problems are not technical but social. Even in the gaming sector, nobody really charges less than about a dollar for items - that is the smallest unit of money where putting up with fraud, complaints, and chargebacks becomes worthwhile.
Add to this the huge race to the bottom (they are charging 3 cents for their article, read my summary for 2 cents) and you quickly begin to see why micropayments have never taken off.
Finally, I wrote a blog post along these lines with more detail[0]. For those who disagree, ask yourselves; would you pay me 2 cents before you click that link.
I wouldn't pay for a news site, and I try to avoid looking at them, but sometimes I get sucked in.
The news is toxic propaganda, and nothing more. Nothing actionable.
Avoid at all costs.
The difference between $0.00 and $0.01 is infinite.
But I’m really curious how bad the free experience would have to become before people are open to paying a pittance?
This does not seem to reckon with the many, MANY times this has been tried and failed. (The LinkedIn post at least acknowledges attempts that "did fail in the 90s and 2000s" and quickly waves them away.) There have been at least a dozen serious attempts in the last 20 years that I'm aware of.
What about Blendle? They had NYT, WaPo and WSJ as launch partners in 2014 but give up on micropayments in 2023 citing "very low demand"
Or Flattr. Or Invisibly. Or Pico. Or Brave's goofy crypto token. Or Coil. The Washington Post themselves experimented with cheap "day passes" a few years ago but I guess they didn't work well enough to keep. Arguably Medium's rev share program was another failed attempt. Heck no less a content middleman powerhouse than Apple tried and mostly failed to do a rev share / micropayments scheme with Apple News.
I want a lie bounty. If I pay for an article and find a lie in it, I should get a refund plus a bug bounty. That would make fact-checking pay off.
A real problem is that most of the fact-oriented sources are paywalled, while the polemic sites, especially on the hard right, are free. Fox News and X are free, but the New York Times and the Wall Street Journal are paywalled.
No, no, no! Micropayments are not the way.
We already know the way. It's the cable/streaming model.
You pay for a single monthly subscription and get access to substantially all of the major news content.
What would need to happen for this to be possible? Cooperation between most of the major news outlets. Not cooperation in an anti-competitive sense, but willingness to participate in this sort of business model.
I'm a former news editor and left the industry because the business side couldn't figure out a viable business model.
I realize and feel deeply the loss we experience (especially at the local and state level) when quality journalism dies out, and I would love for the industry to recover.
But they're not going to do it unless they recognize that single-site subscriptions (or micropayment transactions) aren't going to cut it.
I pay for the Ground News app. It's an aggregator that (somehow) gets me all the articles on a topic, shows me how factual each source is and which way they lean politically. It summarizes the articles so I can ignore the click-bate headline and know whether I want to read more.
I'm honestly not sure why this isn't the standard. It solved all my news problems and fills all my news needs.
I'm honestly not sure what these tiny news sites that have paywalls are thinking. The chances of me paying a monthly fee for news from a single source, let alone a tiny, local, single source, are less than zero.
You're going to put all the work into finding the news and doing the leg work. I'm going to make a site called NewsTheft.info that just says "YourNewsSite.com is reporting that <your content rewritten by an LLM>" and it's going to be free and people are going to use my thing. Then I'm going to shut it down when you all go bust. I am a rapacious eater of worlds. You can't stop me and the people love me because, since it's free, I can give them a better experience than you.
Information wants to be free.
who the hell wants to think about micropayments every time they read an article? microtransactions just suck outright, they create a ton of overhead for everyone involved — both use and implementation
not to mention that they're fundamentally incompatible with the american credit card cabal, which forces you into buying some goofy monopoly money that you're likely to overspend on regularly
> who want to bury us in deepfakes, extreme right wing bullshit
It's a shame with articles like this that are otherwise insightful, they just lose me with sentences like that.
Like, if you don't have enough insight to recognize that bullshit is a general political issue, and has been forever, how can I rely on any other analysis you make?
No one reads print anymore. Most people nowadays consume their news either through a Youtube broadcast or a podcast. The news is produced for free and completely paid for through advertising. The folks using this site, we're in the (rather extreme) minority.
Micropayments work for games because there is some specific outcome I know I want and know paying this money will move me closer to that goal in the immediate future.
That isn't the case for news content. In news it's "reading this might be interesting" or being generous "knowing this might improve my life at some point".
That delay in outcome will kill micropayments because it again goes from a very easy calculation in your mind to "too hard" like Clay talked about.