And still the debate continues. The Freakonomics blog at the New York Times is the latest to throw its rhetorical hat into this particular ring, which seems fitting given the authors’ focus on the conjunction of economics and society. Both Alan Mutter and Clay Shirky show up in this forum as well, making similar arguments — the former in favour of micropayments, which he says will overcome the “Original Sin” of giving content away for free online, adding that readers wouldn’t mind being nickel-and-dimed “if the content were sufficiently unique and compelling.”
Shirky, meanwhile, argues that:
Online, small payments only work when the collector of those payments has end-to-end control of delivery, generally by controlling the hardware or software the user has access to. (This is true of all metered billing, in fact.)
The fantasy that small payments will save publishers as they move online is really a fantasy that monopoly pricing power can be re-established over we users. Invoking the magic word “micropayments” is thus grabbing the wrong end of the stick; if online publishers had that kind of pricing power, micropayments wouldn’t be necessary. And since they don’t have that pricing power, micropayments won’t provide it.
(read the rest of this post at the Nieman Journalism Lab)