Archive for August, 2009

PayCheckr: the ‘ShareThis’ for donation, pay options

Something I’ve been tracking for months now is the wave of new solutions for getting people to pay for online content, either through voluntary donations or mandatory payments. Some are in beta now; others due in the coming months.

Currently, I have a Payyattention donation box at the end of my blog items, and I’ve been playing with early versions of SprinklePenny and BeneVote (though they’ve been removed temporarily due to some bugginess). I’m anxiously awaiting putting a Kachingle medallion on this blog to be part of that voluntary payment network, and will certainly try out others as they go live.

And, of course, there are plenty of options for paying for content where money is a requirement, not a request: Paypal, credit cards, and upcoming solutions such as those from Journalism Online. (The latter also says it will offer donation options as well as various means for required payments and subscriptions.)

As author of this blog, I’d love to have lots of options for readers to send a few cents (or dollars!) my way if they like my writing or find value in it. But this blog could easily get overwhelmed with donation graphics from all the different services!

I’ve been looking for the solution, which is an obvious one: a ShareThis-like widget that aggregates all the solutions for payment and/or donation. The first such solution appears to be PayCheckr.

The concept here should be pretty obvious from the screen shots above. How I might use it to collect contributions on my blog is to have a PayCheckr icon or (ideally) something that says, “Please support this blog,” with a mouseover action expanding to what you see in the top image above — but in my case it would be populated with voluntary donation options — and place it at the end of my blog entries.

For paid content, a site or blog might use PayCheckr to aggregate all the forced-pay options that an online user could use to pay for content access.

You could also get creative. Perhaps you let Kachingle paying network members get access to a special piece of content or area of your site, but non-Kachinglers would have to choose another option, such as paying for a subscription or via a micropayment service.

Also, PayCheckr might aggregate all or most of the options; you still might choose to highlight some options outside of the PayCheckr widget.

Anyway, I’ve been looking for someone to come up with something like this, and PayCheckr founder Allan Hoving appears to be the first. Somehow he evaded my radar, since minOnline gave the fledgling service a write-up in late July.

Chatting about new news business models: Here’s the transcript

Here’s the CoverItLive archived version of today’s ASNE online chat about new news business models. The event was hosted by Steve Buttry, with panelists Mark Briggs, Charlotte Anne Lucas, Dan Conover, and me. Did we solve the news industry’s problems? (Umm, I doubt it. But some good ideas were tossed around.)

(I’m not sure if I’m a big fan of this format of group discussion. Like chatting on IM or Skype, sometimes by the time you’ve typed an answer to a question, someone else has already published another question or changed the topic. So read this chat transcript with that in mind; there’s the occasional out-of-order conversation that doesn’t happen with live in-person or phone group discussions.)

Tracking cut-&-pastes is cool; attribution request too much

A while back I installed Tracer on this (Wordpress-based) blog, as an experiment to see what people were copying from my blog entries. It’s interesting information, but I regret setting Tracer up so that it would also include a customized link request that shows up whenever someone pastes words copied from my blog.

The idea is that the person excerpting some of your article might keep the attribution line and sends links back to your blog. Fine in theory, but I personally found it annoying when I copied some of my own words and pasted them elsewhere. (I’d have to trim the link request code.)

Also, I’ve noticed a drop in my recent blog entries being picked up by other bloggers. I have no idea whether this Tracer setting discourages people from excerpting my blog content, or if it’s another factor (like getting more link referrals on Twitter and Facebook than other blogs, which seems to be a trend).

Whatever, I turned off the Tracer auto-link generator for cut-and-pastes from this blog, so Tracer is merely monitoring and telling me what content others have copied from my blog, which is fascinating information. No more annoyances.

Oh, good grief, Tim Rutten!

You usually don’t have to look too far to see an outrageously backward suggestion for “saving newspapers.” This weekend’s most ridiculous opinion column on the topic without a doubt would be Tim Rutten’s, writing for the Los Angeles Times: “Setting the price of a free press.”

Here’s a taste of Rutten’s nonsense:

“Congress needs to move quickly to grant the newspaper industry at least a temporary exemption from antitrust and price-fixing laws so that publishers and proprietors can, in essence, collude for survival.”

He’s joking, right? U.S. newspapers, many with a history of profit margins in the 20-30% range for many years, suddenly should be allowed to collude because they’ve had a rough couple years? That’s outrageous. The marketplace and disruptive technologies are forcing newspapers to change or die. So they have to change, reinvent themselves for the digital age. Let’s keep government out of this, unless it’s in more useful ways such as supporting the expansion of broadband to all, giving media players large and small a level playing field.

Rutten appears to be among the industry curmudgeons who believe that only newspapers have the “right stuff” to provide the quality and quantity of serious journalism to safeguard democracy. He apparently hasn’t noticed that a new news ecosystem is forming as a result of newspapers’ failure to adapt and continued layoffs and cost-cutting.

I need to write my monthly Editor & Publisher Online column this weekend, and I’ll cover some more positive ideas for maintaining quality journalism during this period of rough transition from old media to new. Metro newspapers can be part of the transition and benefit from it, or listen to voices like Rutten’s and dig themselves an even deeper hole.

Feeling a bit better after Aspen conference

This week I was lucky enough to participate in an Aspen Institute conference, “Of the Press: Models for Preserving American Journalism.” The participants were an all-star bunch, including Madeleine Albright (a journalist before becoming a diplomat) for day 1, Washington Post executive editor Marcus Brauchli, Marissa Mayer of Google, Craig Newmark of Craigslist, Federal Trade Commission chairman Jon Leibowitz, NPR CEO Vivian Schiller, and other assorted top dogs from News Corp., MediaNews Group, Associated Press, American Public Media, the Knight Foundation, etc. (Here’s the full list; it opens up a Word doc.)

A significant part of the 3-day event was devoted to business models to sustain journalism (legacy news institutions, upstart digital news entities, community bloggers, and non-profit news initiatives), and especially the idea of getting online users to pay for news, whether through force (pay-wall schemes) or persuasion (donation models).

I’ll write more about the event later, but for now I want to toss out one quick impression: It didn’t turn into the jihad over business strategy that I expected going in.

First, some context. … In recent months, some of the news industry’s leaders have made some statements that seemed to indicate that they were gearing up to put a lock on a lot of their online news content (or even all of it) and make users pay for access, that they’d seriously go after people “stealing” their content, and that even headline-and-excerpt news links might be banned. For example:

Rupert Murdoch, News Corp.: “Quality journalism is not cheap and an industry that gives away its content is simply cannibalizing its ability to produce good reporting. … We can be platform-neutral but never free.”

Tom Curley, Associated Press: “If someone can build multibillion-dollar businesses out of keywords, we can build multihundred-million businesses out of headlines, and we’re going to do that.”

Dean Singleton, MediaNews Group: “The content is ours and we can do anything with it we choose to do with it. If it’s in our best interest to give it away, we will give it away. If it’s in the best interest to charge, we will charge.”

But after spending a few days in Aspen, I returned to Boulder feeling more optimistic. While overall the news industry remains in a state of confusion, with no clear immediate solutions to the decline in legacy news organizations (especially newspapers), the outcome of the conference discussions were, I dare say, reasonable. I had feared either that the conversation would become hostile between “paid vs. free” camps, or that the group would come to bad decisions, such as a stronger move toward unity on charging for news online. Rather, I’m thinking that recent statements like those above are mostly bluster.

While it’s not clear that all news publishers will follow the quasi-consensus of the elite Aspen Institute crowd, I got a sense that for the most part, really bad moves like putting up high pay-walls on news websites won’t happen.

Here are a few quick takeaways:

  • Most news publishers recognize that many revenue streams will be necessary for digital news. They’re not stuck on just advertising, just paid content, or just both; they know they’ll need more, including new models not yet devised. To quote Clay Shirky on saving the news industry: “Nothing will work, but everything may work.”
  • Most everyone wants to charge for some premium content, but few think that any news publisher will be able to get money out of more than 10% of their most-loyal users. That sounds too high to me, since newspapers and other old media have cut back so much on staff and they’ll have a hard time creating content and services that online users will pay for. I didn’t sense any kind of death wish, so for the most part we’ll probably see 90%-plus of legacy news sites’ content remain free.
  • That desire to find the right “freemium” model leaves room for implementing other options simultaneously, including allowing users to donate and support their favorite sites via networked donation solutions (e.g., Kachingle, whose founder was an Aspen participant), as well as tracking copyright infringement and making revenue-sharing offers to the offenders rather than punishment being the only option.
  • The non-profit news sector will grow quickly, as more foundations, philanthropists, and the public become aware of the “news crisis” and support investigative and public-interest journalism as the struggling private sector falls down on that job.

More later…

Paid news content presentation from Aspen

My time to speak at the Aspen Institute’s FOCAS conference, running through Wednesday, got squished, so I had to skip slides and make other adjustments (ugh). The talk was on “Paying for Digital News: The Future or Folly.”

A bunch of folks asked that I posted the presentation slides, so here they are in PDF form:

Paying for Digital News presentation

(In case your wondering why discussion of Journalism Online is left out, that’s because JO co-founder Gordon Crovitz gave a presentation right before me.)

Yet another donation option: Sprinklepenny

Whether traditional news publishers believe that user/reader donations represent a viable revenue stream or not, entrepreneurs are hot on the idea, judging by the number of variations of solutions under development for getting people to voluntarily give money to support websites and blogs. I’ve begun using this, my personal blog, to try out the early versions of some of these upcoming and new services.

The latest to add to my list is SprinklePenny, a UK company that’s developed a service that is, frankly, very close to the model of Kachingle (which I’ve profiled previously).

The idea is that a user wishing to support free content made available by a variety of news sites, blogs, and other websites signs up for a $5/month (or a higher amount, if desired) SprinklePenny account, which is auto-billed to a credit card each month. Then whenever said SprinklePenny member visits a site that participates in the network (like this blog), the visit is counted and the $5 is split up at the end of each month depending on how often the member visited various SprinklePenny-enabled sites.

The primary difference between it and Kachingle is subtle, but perhaps important. Kachingle asks that Kachingle paying members click on a “medallion” when they see one on a site they like and wish to financially support. SprinklePenny credits every enabled site with a visit credit, and thus every site that a member visits receives some money from SprinklePenny members who drop by. But if you don’t want to support a site that you visited, you can remove it from the list of sites that receive some of your money.

In other words, Kachingle asks you to “opt-in” to financially supporting a site. SprinklePenny has you by default financially supporting every enabled site you visit, but you can “opt-out” for any visited site that you really don’t want to support.

It will be interesting to see which of these does better than the other. I suspect it will depend on the marketing plan of each company; the one that gets in front of the largest audience of potential members likely will be the winner.

I do see a potential problem with the SprinklePenny approach: Say, I am duped into visiting a site that I find offensive (perhaps by a Twitter recommendation) and it’s a SprinklePenny publisher; then I’ll have to actively turn off my support for that site.

With Kachingle, I’m in control of which sites I financially support; I have to click the Kachingle medallion to support a site. While I like that better, it’s an extra step that I don’t have to take if I’m supporting free content with SprinklePenny. So will I remember to click those medallions are thus start sending my favorite sites money?

Both companies will tell you their approach is the best one. We’ll see in time.

Attributor: Will it be used for good or evil?

I’m not sure anyone outside the Associated Press’ top leadership truly understands its intentions regarding use and re-use of its content outside officially licensed deals. But over at Poynter.org’s E-Media Tidbits, Megan Taylor makes a brave attempt at sorting through the muck: “How AP’s News Registry Will (and Won’t) Work.”

Much of the AP’s saber-rattling lately has focused on copyright enforcement of its content — to keep other web publishers and aggregators from “stealing” its articles, photos, and videos without paying a licensing or syndication fee. That’s fine if the newspaper-owned wire service is looking for those who are republishing its full content without permission, a re-licensing arrangement through another party, or paying the AP or its members. It’s not at all fine if it’s trying to prevent others’ use of headlines and short excerpts that most would consider to be legal under “fair use” laws; and recent statements from AP’s president indicate that the AP now considers even headlines and short excerpts something that should be paid for by other parties to the AP.

This is where Attributor comes in. The AP has been working with this Silicon Valley company since 2007 because Attributor has developed technology to track and identify where your content is being re-used across the web, and then take a variety of actions based on this knowledge.

I interviewed Attributor CEO Jim Pitkow recently, and I really like the central idea behind the technology it’s developed. In effect, the company has created a new variation of content syndication, and this could be of significant financial benefit to news publishers.

Here’s what Attributor can do:

  • Determine who is republishing your content online, and how much of it. It can give you, the originating publisher of news content (e.g., the AP), a dashboard showing who is republishing your full articles, as well as who is publishing headlines and excerpts (and whether or not they’re publishing links back to the full original article).
  • Allow the publisher to act on this knowledge in multiple ways, at the discretion of the publisher.
    1. Send a DMCA notice demanding that the infringing publisher cease and desist from publishing the originating publisher’s copyrighted content. And follow up to ensure compliance.
    2. Notify the infringing publisher that it can either take down the purloined content, OR continue to publish it (past publication and ongoing) by agreeing to share a negotiated portion of the ad revenues generated from that content with the content owner.
    3. If the infringing publisher refuses to execute either of the options in No. 2, Attributor will notify search engines of the violation and ask that the site be removed from being indexed (effectively punishing the site for stealing by making it invisible). Attributor also will notify ad networks that the infringing site is violating its client’s copyright and ask that the site’s ad-network account be cancelled or blocked.

For the most part, I think the Attributor strategy is brilliant. It doesn’t just enforce, it’s also a syndication marketing tool! It supports a news publisher allowing the spread of its news content far and wide; it doesn’t force a strategy of getting web users to always visit the content owner’s site (i.e., walled garden), but rather allows people to read the full content in all sorts of places.

This is EXACTLY what many news publishers should be doing! They must figure out ways to “let their content go free” while monetizing it as it spreads across the web. Indeed, a news publisher could suggest that other sites publish their full content in exchange for an ad-revenue share. Not only does this bring in new revenue, but it also spreads the news around much wider — which is in the public interest.

News publishers have got to realize that it’s in their best interest if their sole website is not where the online user MUST go to read or view their content.

Here’s an example: Let’s say the AP, by using Attributor, discovers that a political website is publishing full text of all AP politics articles, unauthorized. AP can decide to let Attributor offer option No. 2 to the political site: either stop stealing our full content, or agree to a shared-ad-revenue deal and continue publishing full AP politics stories. AP would get to set the percentage offered; let’s say it wants 70% of the ad money brought in from its content as published on the politics site, leaving the site publisher to keep 30%.

How can this not make sense? The AP, in this example, has created a new (albeit small) revenue stream from someone else publishing its full content — where before it was getting nothing. Multiply that by many thousands of sites that Attributor may find publishing full AP content without permission, some (many?) of which are then turned into revenue sources. It’s taking advantage of the nature of the Internet and the ease with which digital content can be copied and republished, rather than fighting it in what ends up being attempting to push back the waves from the ocean beach.

As Pitkow explained to me, the publisher has control of what action(s) to take. If, say, the AP finds a bunch of “pipsqueak” bloggers who occasionally post a full AP article, it probably would be wise to do nothing; it’s not worth the bother.

If it finds a website like the political one in our hypothetical example above, that’s a marketing opportunity. Try to turn the site into a paying customer (by getting a chunk of its ad revenues derived from the AP content); if it doesn’t want to do that, it must cease the copyright infringement or face dire consequences.

Much of the debate in the news industry of late has been over putting content behind pay walls. Just this week, Rupert Murdoch announced that his newspaper sites would begin charging, apparently, for all content sometime in 2010. I find it doubtful he’ll go that far; we’ll more likely see just some “premium” content and services from Rupe’s newspaper websites cost something. If he follows through on that “all” threat, I’m comfortable calling that decision “stupid,” because it will help out his competitors who decide not to charge, and reduce his sites’ ad revenues as audience plummets.

I believe that the Attributor content-monitoring and syndication-marketing strategy stands a much better chance of increasing revenues, while a paid-wall strategy for news most likely will reduce revenues. The first model leverages the nature of the web; the second fights against it with old, outdated models, and thus is destined to fail. (To be clear, I’m not talking about a “freemium” model where limited, special content and services cost something, but most news content is free.)

The one big problem with Attributor is that the company is simply building enabling technology, and publishers can use it in ways they choose. So if AP president Tom Curley sticks to what he told the New York Times last month, that the AP will go after websites, aggregators, and search engines that include a headline and a link to an article, then Attributor will have been used in a stupid manner. Ditto if it looks for those who republish its full articles or excerpts that are too long, but doesn’t offer the option of turning the infringers into customers. It will be used as an enforcement tool (negative) rather than a marketing tool (positive).

Also, Attributor could be used to find all the aggregators and others who are publishing regular headline and excerpt links to original AP content. That list of online publishers is a valuable tool for AP syndication sales reps, who could offer the sites deals allowing the publishers to also publish full AP content for a price.

I can only hope that news CEOs understand the potential of Attributor for doing good, not just punishing evil. Frankly, with recent statements by Murdoch, Curley, et al, I’m not confident that they’ll do the right thing.

The wrong choice could kill much of the traditional news industry.

I’m reminded of former President George W. Bush and one of his many wacky statements: “You’re either with us or against us.” The Internet presents a similar choice to news publishers: “You’re either for the Internet or against it.” The latter is an unfortunate choice; I hope Mr. Curley and Mr. Murdoch aren’t serious about taking it.

Newspapers still on ‘classic route toward virtual organizational extinction’

Periodically I hear from retired management consultant Frank Pecarich, who has for the last few years watched with dismay as the newspaper industry follows the path of what he terms the classic industry death-spiral, failing to act and change course based on the data that its leaders are presented with about their changing market and disruptive technology’s effect on it.

I received an e-mail from him today, commenting on my most recent Editor & Publisher Online column, an interview with persuasive technology psychology professor B.J. Fogg of Stanford University. Fogg dismissed the idea that newspapers can get very many people to pay for news on the web, but suggested that making money from high-value online niche content and/or services that are attractive to enthusiast or specialized audiences could be a user-payment-driven business for newspaper companies, supporting online news that’s paid for by advertising and other revenue streams that don’t defy consumer psychology.

Pecarich’s observations of late have led him to believe that newspaper leaders continue to flounder in the classic death spiral without making the necessary harsh adjustments to pull out before hitting the ground. He looked at my career (analyzing and consulting the newspaper industry since the birth of the web around 1994) and wrote:

“As time passes, you can see how the (newspaper) industry is following that classic route toward virtual organizational extinction. One thing that can be said about your experience is that you will have seen the whole theory play out from start to finish and most people don’t have that opportunity. In other words, you will have a good idea of the answer to the ‘Whatever happened to “X” industry?’ question.”

I guess that means there’s a history-book project in my future. Of course, the newspaper industry can squelch my forthcoming book (I really don’t want to write it) if it starts making strategic decisions that put the consumer first, recognizes the massive shift taking place in how people consume and interact with the news, and acts accordingly. Unfortunately, we instead see much of the industry act in what it thinks is its self interest, never mind the market trends and clear changes in consumer behavior. (The Associated Press currently leads the way with industry-first, consumer-second strategy.)