Is the paywall here to stay ?

January 11th, 2011

I recently read a blog written by Fraser Nelson on 26th December 2010 for the Spectator, on the subject of paywalls. Fraser starts out by saying:

Yesterday, The Times produced its first Christmas Day edition for more than a century – since, that is, newsagents started taking that day off. The jewel in that edition was a wonderfully spirited piece from my Spectator colleague Matthew Parris about the importance of paywalls. I fervently believe in them, and regard them as the only hope for this sharply contracting industry. But over to Matthew:

“‘Sorry, I can’t read you anymore, but I refuse on principle to subscribe now that there’s a paywall,’ these muppets whine. ‘On principle?’ I reply. ‘What principle?’ As they fumble for an argument, I interrupt: ‘Look, maybe the money is a bit tight at present: I quite understand that. In fact, if it would cheer you up, I’d be glad to get you a drink at the bar – except that there’s a paywall in pubs and bars in this country. So there’s obviously a principle to be upheld here… Greedy graspers that they are, they take the view that as they’ve had to shell out for the wines and spirits they serve and pay the bar staff’s wages, they actually want customers to make a contribution to their costs. Unbelievable, isn’t it?’”…………..
……………….“If a newspaper loses income from readers who now take the electronic edition free, then it can’t indefinitely stay in business. To have a future, 21st century papers must find new sources of income… Unless paid subscription works, our kind of journalism is doomed.”
As a consumer, I love free journalism. As a writer, it’s a great tool that multiplies the readership of what you produce. But as Matthew says, it is doomed. Online advertising has not covered the cost of free articles.
Fraser concludes this particular blog:
Now, I know this is not a popular point to make amongst CoffeeHousers. Our blogs are free. But look ten years into the future, and you see digital editions fast replacing print………….So, as Matthew says, the choice for my industry is clear: either we manage to make digital subscription work, or game over.
What i really found interesting and illuminating about this blog were the comments which it provoked. There were the usual comments from those who believe that all news related content on the internet should be free – end of story. There were also many well argued comments, from which one can conclude that whilst almost everyone is against Paywalls or believes that they will not work many users of news are prepared to pay for well written comment and analysis of news and current affairs. Paywalls are not the answer and what is needed is an easy to use payments system which allows content creators to charge a fair price for their content or for content consumers to easily reward those who create the content.
Following are a number of extracts from the original comments made on Fraser’s blog:
This is not print. It is a different ball game. The internet primarily is a phenomenon which enables one not only to get a bigger readership, but to publish freely without gatekeepers. The established media only saw it as more readers, not more and better competition. The reaction of the established media has been late and inadequate. Move on, your model is dead.

I don’t expect free journalism but the problem is the price. The pay wall is truly a wall that seems too difficult to climb over.

I will never subscribe to any paywall. I prefer to get my news from the radio and other media, not forgetting blogs which keep me much more informed.

The Matthew Parris logic is flawed by the way. I can choose to enter a pub etc and buy a pint. If I subscribe to The Times etc I have to stay with them for at least a month, the money is taken up front and I am trapped.

You surely choose to read a publication because you like the content. If you do choose to read it, why would you expect to do so gratis?

Currently the paywall is the equivalent of paying to see the Bearded Lady at the carnival. You feel curious, you pay, you go in, you come out, you feel cheated. That may change, with time, but as with most innovations their practical use tends to evolve rather than be promulgated by theory. Paywalls may turn out to be the internet equivalent of walking in front of a car with a red flag.

Maybe newspaper and magazine publishers need to get together and devise an industry-wide “pay per article” system.

Well of course, we’d all pay for content, if it was the content we wanted.

Newspapers need to understand that many people do not want to read one paper from cover to cover, but to read what several papers of different hues have to say about a few topics. Until they, or an independent supplier, can get in place a system that charges the user per article, and then provides the user with an aggregate bill for the month………..

Murdoch expects us to pay not only the same daily price but to commit for a whole month, something our newsagents never asked us to do……..so no, Matthew Parris, it’s not the principle of paying for something that people are objecting to; it’s the principle of not being ripped off

We all appreciate that beer costs money, and publicans need to earn a crust, but if there is a pub next door offering free booze, which one are we going to go to?

I’d happily pay 25p a time to read the four names I posted above though, which depending on the number of articles a week may work out about the same. It’s just that I’d feel I’m paying for what I want, rather than paying for 99% complete garbage to get to the 1% that interests me.

Finally, if more newspapers follow The Times there will be a huge demand for writers who can attract new subscribers and pay-per-article readers. Columnists who can do this on a regular basis will stand to make an awful lot of money.

Wikileaks – CarrotPay’s dilemna

December 20th, 2010

Secrecy is the first essential in affairs of state. ¹

Secrecy, once accepted, becomes an addiction ²

The Wikileaks story is a story which is familiar to us all.  Launched in 2006, Wikileaks is described in Wikipedia as an international new media non-profit organisation that publishes submissions of private, secret and classified media from anonymous news sources and news leaks.

Whatever the rights and wrongs of the decision to make the recent disclosures on the Wikileaks site there has to be concern over the reactions and subsequent actions of Wikileaks’s commercial partners:

Amazon throws Wikileaks off their servers, apparently citing a breach of their terms and conditions. PayPal stops Wikileaks using Paypal to receive donations and freezes their account, again citing a breach of terms and conditions.  Given the nature of what Wikileaks does this apparent breach of terms and conditions was something which must have been going on for some time and was presumably not news to either Amazon or Paypal who subsequently confirmed that they had come under pressure from the authorities to close Wikileaks’ accounts. Mastercard and Visa followed suit, again under pressure from the authorities.

This brings me to the dilemna we at CarrotPay could face one day. As part of our service we offer a Donate button which allows individuals to quickly and easily make donations to particular web-sites / organisations. With a couple of clicks of the mouse it is possible to specify the amount to be donated and then transfer the Webcoins from an electronic purse. Similarly all it takes is a couple of lines of code and the Donate button is installed on a Web-site. Simple to use and perfect for an organisation such as Wikileaks.

Where Wikileaks to install our Donate buttons on their pages, what should we do ? Do we say no ? sorry but, although we should like to, we cannot take the risk of working with you.

Why should we say no, if there is nothing legally wrong with an individual openly making a donation to Wikileaks, or similar organisations ?

What if the authorities put pressure on our commercial partners and we find ourselves being squeezed and our very existance being threatened. Do we sacrifice principles for commercial survival ?

At the moment the question is purely hypothetical but as more and more organisations take up the use of our Donate button, it is a question which will one day be asked. Hopefully we will have the moral courage to do the right thing.

The better the information it has, the better democracy works. Silence and secrecy are never good for it. Kate Adie ³

¹ Cardinal Richelieu, a French clergyman, noble and statesman.

² Edward Teller, a Hungarian born American theoretical physicist known colloquially as “the father of the hydrogen bomb”

³ Kate Adie is a British journalist. Her most high-profile was that of chief news correspondent for BBC News during which time she became well-known for reporting from war zones around the world.

Working with Carrot Micropayments expands collection of recipes.

September 29th, 2010

One of the most natural things to do when I first started working with Carrot, was to add a few new words to my Google alerts. Although “Carrot” was bound to produce a flood of irrelevant newsfeed, it felt wrong to leave it out and here I am going through the vast range of websites using the word “carrot” in all imaginable contexts. Beyond doubt, there’s some interesting reading, but most of all, there are so many great recipes out there that include carrots!

It goes without saying that it wasn’t my cooking skills that got me a job with Carrot and my first carrotcake turned into a living proof of that. However, the fact that my new job indirectly produced a somewhat eatable carrotcake, still far exceeded my girlfriend’s expectations.

Isn’t it amazing how much stuff you can find out there? Isn’t it even more amazing that some people put in all this work and go through trouble just to share something they like (or don’t like). I no longer have to go out and buy an over-marketed cookbook just to impress on my girlfriend (or myself). Instead, I’m presented with tried and approved recipes right here on my computer. And the best part is that they usually come to me through friends, rather than some smiling guy in a chef’s hat “brought to you by…”

Anyway, I just wanted to say thanks to all of you out there posting recipes that add some spice to my everyday life. I hope you get some sort of reward for what you do!

Here’s the cake I made. Try it out, but stick to the recommended time! There’s more where this one came from, so make sure to check out the rest of this great site.

Does anybody have more carrot recipes or know of a good recipe-site that deserves some attention?

The lady doth protest too much, me thinks.

September 13th, 2010

There is a constant flow of articles in the media, explaining why micropayments have been tried many times since the earliest days of the internet and have always failed. The arguments are then developed along the lines that having failed in the past micropayments will therefore never work in the future. These arguments fail to take into consideration a number of factors, not least, technological development, changing attitudes to not paying for content and economic realities.

I also wonder if micropayments are doomed not to succeed, why does a week not pass by without some expert feeling it necessary to write about the futility of the efforts of those developing micropayment systems –

“The lady doth protest too much, me thinks” ¹.

One reason commentators like to roll out when beating this particular drum is something called “mental transaction costs”. This is the energy required to decide whether something is worth buying or not, regardless of price.

The thing is, it is not as simple as this. Of course we all consider the price of something before deciding whether something is worth buying but the amount of effort we put into this, is also a function of our ability to pay as well as the price. Something which we might expend energy thinking about purchasing when we are a poor student, doesn’t warrant a second thought when we have a regular income.

If we find content creators ( music, games, writing, research…….. ) whom we like, or are recommended to us by people we trust, most people will not think twice about making payments of 10p – 50p. If they don’t like what they purchased they may well berate their friends and not buy anything more from this particular content creator and if they like what they purchase they will be back for more and more importantly recommend the particular content creator to their friends.

The most important single central fact about a free market is that no exchange takes place unless both parties benefit. Milton Friedman ²

The real reason why micropayments failed to take off in the past was not so called “Mental transaction costs” but the amount of friction involved in authorising the payment. No one is going to go through the rigmarole of entering a password and a load of personal data to authorise a transaction of 50p. Such transactions need to be capable of being authorised with 1 or 2 clicks maximum.

From the consumer’s perspective, what is needed is either a form of Webpurse into which a sum of money is preloaded and from which individual payments are made or a method of accumulating transactions and then paying for them once a month or when they have accumulated to a reasonable size. Such systems already exist but unfortunately they are not universal in that they usually lock you into a particular middleman’s walled garden as with Apple’s on-line stores.

What these systems do however demonstrate is that micropayments are here and here to stay. This is ably demonstrated by the multi-million dollar market for in-games payments, the large and growing market for virtual products using virtual currencies and of course the Apple stores.

¹  Shakespeare’s Hamlet, Act 111, scene 11

² Milton Friedman was an American economist, statistician, and a recipient of the Nobel Prize in Economics

Why casual commerce ?

September 2nd, 2010

Anyone who has lost track fo time when using a computer knows the propensity to dream, the urge to make dreams come true and the tendency to miss lunch. Tim Berners-Lee ¹

The header for the Carrot.org site reads “Carrot -Coins for the Web – Enabling Casual Commerce“. We are often asked what is this thing “casual commerce”.

It refelcts the casual nature for transactions which are carried out using CarrotPay. From the purchasers perspective a couple of clicks and a purchase for a few cents is made and the digital content delivered. From the content creator’s perspective, the casual creator dip a toe in the water and set up to accept small payments with no great adminstrative effort or financial commitment.

The Oxford English Dictionary defines Casual as: “relaxed, without formality of style or manner”

and Commerce as: “the activity of buying and selling“.

What type of commerce are we talking about where this wold be remotely relevant ?

An example of casual commerce in the real world could be the stereotypical youngster setting up a lemonade stand on the pavement outside his home to raise money for his latest project. All it takes is a large jug of iced lemonade ( usually down to Mum ), glasses, a table, a chair and the all important cash box for the mountain of sales receipts and Hey Presto you are in business. Not a long term business venture but the first tentative steps in an entrepreneurial career, a form of casual commerce.

Making the leap to the internet, we have our budding entrepreneur creating content which he thinks he could sell on the internet. Setting up the web-site to display and sell the content takes a couple of hour’s work. The little app cannot be too expensive and is to be sold for 50 cents but here’s the thing, he can forget credit and debit cards, as they are too cumbersome to set up, it will take ages to arrange and the charges will be too high for such low value transactions. What about Apple ?  they are really cool ! but similar issues – lose 30% of your proceeds to Apple and a lengthy approval process.

Enter CarrotPay, it takes a couple of minutes to obtain a merchant’s WebPurse in order to accept cash ( the Cash Box ) and a couple of lines of code to drop the buy buttons into different locations on the web-site and hey presto our budding entrepreneur is in business. Possibly the first, small steps towards a serious business or something to play around with on those bad weather days – Casual commerce.

¹ Sir Timothy John “Tim” Berners-Lee is a British engineer and computer Scientist and MIT professor credited with inventing the World Wide Web.

Good Causes set to benefit from CarrotBid on Facebook

August 27th, 2010

If you think you’re too small to make an impact, try going to bed with a mosquito.

Anita Roddick¹

A bit of Carrot news for a change. CarrotPay has launched CarrotBid on Facebook. CarrotBid is an application which raises funds for good causes whilst demonstrating how easy it is to make micropayments, using CarrotPay’s Web Purse and WebCoins.

CarrotBid is a lowest bid auction. For the uninitiated this is a style of auction where the winner is the person who makes the lowest unique bid. Eg. A current CarrotBid auction is for a Sony Vaio laptop EB Series with a retail value of US$1129. If the bids are in the range of, say $0.01 to $5.98 and the lowest unique bid is $0.28, then this is the price that the bidder pays to secure the laptop. Bids cost 10 cents each with the bids being hidden from other bidders.

The first sponsor is Sennheiser whose generosity will help maximise the amounts raised for good causes such as Save the Children, Kid’s Company and Habitat for humanity. To help users familiarise themselves with the bidding process, all first time users are receiving 10 free bids.

Check it out on the CarrotPay page on Facebook. Try it out with your free bids and help raise funds for the causes which we are supporting and not forgetting,  if you like what you see  tell your friends.

The day is coming when a single carrot, freshly observed, will set off a revolution.

Paul Cézanne ²

¹ Dame Anita Roddick (1942-2007) was a British businesswoman, human rights activist and environmental campaigner, best known as the founder of the Body Shop.

² Paul Cézanne (1839-1906) was a French, post impressionist artist.

A 21st century stalker – adverts !

August 11th, 2010

On the Internet, Nobody Knows You’re a Dog ¹

After reading an article in the 8 August issue of the Sunday Times ( I have to confess it was the dead tree version ) titled  “Every Click you make they’ll be watching you“  it made me think that whilst the basic point in the above classic cartoon may still be valid, it is also true that although nobody knows you are a dog, some have a very good idea that you could well be a dog, especially if you have been searching for the latest crunchiest doggy biscuits or the current “in” hi-tech dog bowl.

The article was about the unease that many people have about the secret snooping devices which store individuals’ personal details. An example was given of a lady who had searched on Amazon to buy some presents for her pregnant sister, only to be “freaked out” when she was subsequently assailed by targeted ads related to having a baby. The writer makes the analogy that ” it is like a shopkeeper followiing you around town harassing you to buy the pair of jeans you have just tried on” . Some of todays techniques seem more analogous to the shopping centre landlord selling the fact that you are in the market for jeans to all the jeans sellers and having them all follow you around town.

Just recently the Wall St Journal tested the world’s top 50 websites to find out just how many cookies, beacons and other trackers they fed into your computer. They found that the 50 sites installed 3,180 tracking files on a test computer, with only Wikipedia installing none.

As with all commercial activity there will always be those who push the limits and eventually cross over the line of what is acceptable, triggering the inevitable legislation as demonstrated by the following quotation made by Baroness Miller during a round table discussion at Westminster last year:

We must come to terms with the cynical reality that, unless Parliament does something, business will ride roughshod with internet users’ data. Our privacy rules are outmoded and uncoordinated, completely unsuited to the competitive commercial environment that is developing on the internet.²

Baroness Miller’s concerns are well demonstrated by the following Scott McNealy³ quotation:

You already have zero privacy – get over it.

We all know that there is a trade off, in that every time we go on the web we are trading personal data for the services provided for free online but this unspoken agreement is being strained to the limits when we sense that we are being stalked by adverts which relate to our search activity. The owners of sites have to strike a fine balance, they need revenue from advertising to pay for their content, they know that advertisers can finely tune where they place their adverts so that they can be sure it is more effective but they do not want to alienate those visiting the site with obtrusive ads or by making it obvious that the targeted ads which a potential client received were as a result of a visit to his site.

This further re-inforces the fact  that content creators who are planning to rely on advertising to contribute a significant percentage of their revenue streams should maybe think again and need to look at other ways of augmenting their revenue and monetizing their content.

¹ Peter Steiner. The New Yorker, page 61 of July 5, 1993

² Baroness Sue Miller of Chilthorne Domer. Liberal Democrat member of the House of Lords. 2009

³ Scott McNealy. The co-founder of Sun Microsystems. 1999

Flattr and Kachingle social micropayments systems – The story so far.

August 5th, 2010

Remember there’s no such thing as a small act of kindness. Every act creates a ripple with no logical end.   Scott Adams

One of the many internet services I use is Google Alerts which I use to search for articles to do with micropayments on an ongoing basis. It isn’t actually working at the moment, but that is another story.  Earlier in the year a couple of names started to feature regularly in the articles which appeared in my Reader every day. Kachingle and Flattr.

Kachingle was the first out of the starting blocks at the end of 2009. The founder of Kachingle had identified the problem which we touched on in a previous blog, namely that many believed that advertising would pay for online content and that this has subsequently proven not to be the case. The kachingle solution for rewarding the creators of content is “Micropayment monetization …. with Zero mental transactions costs.” This is is achieved by the user paying a fixed amount each month ( Say USD5.00 ) and this amount is then shared fairly among the Kachingle registered sites which they visit, based on their usage patterns. The system is very transparent showing who has visited and “kachingled” each site and what their effective contributions are to particular sites. Kachingle’s charges are 15% which includes all the costs of getting money into and out of their system.

Flattr appeared in March 2010 and is a similar system based in Sweden where users pay a fixed amount per month and this is allocated over the sites which they have “flattred” during the month. In order to be able to have a Flattr button on your site, you do however have to become a user ( a flattrer!), make a monthly financial commitment and therefore Flattr other sites. There has to be a bit of irony in the fact that one of the founders of Flattr is Peter Sunde, one of the Pirate Bay operators who in early 2009 was found guilty of assistance to copyright infringement, fined and sentenced to a period in prison. A verdict which was appealed against, with the judge being accused of bias. Mr Sunde’s notoriety would appear not to have done Flattr any harm, a practical demonstration of that age old saying that there is no such thing as bad publicity. Flattr charges 10% but this does not include the costs of getting money into and out of their system.

How have these innovative systems faired since their respective launches. The jury is still out as to whether this concept will be able to deliver sustainable revenue flows to the creators of content and whether they can become financially viable. Kachingle, which initially seems to have focused on blogs and news commentary sites, has seen a steady growth in the number of content creators who accept Kachingles and just as importantly the number of users who are making monthly payments. One interesting development is that Kachingle which is very much a US based operation appears to have seen a big uptake of their system in Europe. Similarly Flattr which is being used for a much wider range of digital content has seen a steady growth in the number of sites which accept Flattr. It is however difficult to see how much of this growth is due to site owners flattring each other and how much is due to independent users of “free” content actually making a financial contribution towards these sites.

A number of points worthy of note:

1. Many sites accept both Flattr and Kachingle demonstrating that the systems are not mutually exclusive from the content creators point of view.

2. There is a much greater and faster uptake of both systems in Europe than in the US.

3. Analysis of the data available on the Kachingle site shows that the average payments being allocated to individual sites are in the range of 20 – 30 cents per user with one active site showing an average of 19 cents and a range of 3 cents through to USD2.08 per user.

What conclusions can we draw from the story so far?

The steady growth of both systems demonstrates that many consumers of content do recognise that the creators of this content should be rewarded for their efforts and are willing to put their money where their mouth is. What is required are systems which allow users to make payments in small amounts, as easily as possible with low to zero mental transaction costs.

One flaw of these systems is that it is not possible to differentiate between a piece of work which is truly eye opening and useful and something which is run of the mill. If I have a monthly payment of say €5.00 and I Flattr 50 sites during a month then the average payment that each site will receive from my contribution will be 10 cents. If in a subsequent month I am away on holiday and busy on other matters and only Flattr say, 2 sites then the amount allocated to each site increases 15 fold to €1.50.

Whilst some form of these social payment systems should be part of the future landscape they are still very much “Work in Progress” and it will be interesting to see how they evolve if they are to help content creators earn a reasonable living. Many content creators will, I believe, use not one system but a combination of systems to generate revenue for their content as follows:

1. Social payment systems such as Flattr and Kachingle.

2. Donate buttons which allow users to donate specific amounts for highly valued cotent using an easy to use micropayment system built on an electronic purse.

3. High value niche content delivered to the customer against payment. Again this will be enabled by an easy to use micropayment system built on an electonic purse.

The initial progress these social payment sites are making also demonstrates something which we at Carrot believe very strongly in and this is that friction free micropayment systems will enable content creators to charge directly for their content thereby enabling them to deal directly with their customers and in the process keep a much greater percentage of the revenue which they are able to generate.

Web Micropayments – Ignore, Mad or Dangerous?

July 28th, 2010

It’s the same each time with progress. First they ignore you, then they say you’re mad, then dangerous, then there’s a pause and then you can’t find anyone who disagrees with you. Tony Benn, British Politician

On any given day we carry out, as a matter of course, any number of financial transactions. The other morning for example, on my way to a meeting I purchased a newspaper, £1.00 changed hands, the paper was mine. Then it was off to Cafe Nero to kick start the day with an Expresso and a not so healthy, chocolate muffin. Cash changed hands the expresso and the muffin were mine to consume at my leisure.

After the meeting it was a short taxi ride to my next meeting. At the destination, cash changed hands when I paid the fare. After my second meeting it was a short walk to the station where a bagpipe playing busker ( guess what country I was in ) was rewarded with some spare change from my pocket, I then quickly purchased a bottle of water, caught my train and settled down with the newspaper for the 40 minute journey back to my office.

All of the above transactions were carried out relatively quickly and seamlessly. There was no request for card numbers or personal information. There was no being sent to another person to make the payment and then returning to the original person to pick up the goods. There was no starting the process again because I had made a mistake with a piece of information. There were no rejections of the transactions.

At no point did I think, I am not paying for this, I should be able to get it for free,  it is my right after all ! When it comes to low priced goods and services if the price is fair and it is easy to pay, we make the purchase and pay.

Why can’t it be like this when we want to make small value purchases on the web. What is needed for low value purchases to become just as easy and routine. Firstly, why do we need to enter all these numbers and personal data when we want to make a payment ? One word “Fraud”. Because of fraud we need to prove the identity of the person making the payment, yet we don’t need to do this when we make small value purchases on the street. We validate the money ( the coins and notes ) not the person.

If we did the same thing for purchases on the web then the process could be much simpler and faster and the resistance to paying a fair price for low value products would be reduced. WebCoins when used for small payments on the web, would allow transactions to be carried out quickly and with very little friction. They have an added benefit for the merchant when compared to physical cash in that because WebCoins would be accumulated electronically there is no need to physcially count the money, have a safe and then arrange for the cash to be transferred securely to the bank.

To answer the question in the title, given the negative comments made by many commentators, especially those who believe in free we are probably now in the phase where the idea of micropayments is perceived to be Dangerous, the final stage before acceptance !

Another quote, not because it is particularly relevant, just because it appeals.

I calculated the total time that humans have waited for web pages to load. It cancels out all the productivity gains of the information age. Sometimes I think the web is a big plot to keep people like me away from normal society. Scott Adams

Kindle Books Outselling Hardcover Books, What Does The Future Bring?

July 21st, 2010

There is an interesting story making the rounds on the web that I recently read on TechCrunch. Amazon.com released a statement claiming that the “tipping point” has finally been reached with its Kindle books now outselling hardcover books on its site. They claim that over the past year for every 100 hardcover books sold on their site, they sold 143 Kindle books and in the last month a ratio of 100:180. Also as an important note, this number does not even include the free e-books being downloaded by Kindle users. The full story can be found here.

Mind you this is only hard cover books and does not include the larger number of paperback book sales, but it does signify that e-books are gaining traction. With more and more titles and publications being offered in the Kindle store and the price of the Kindle being dropped to $189 more people seem to be making the switch to e-books. The Kindle store now offers more than 630,000 books, of which over 510,000 are $9.99 or less, as well as millions of free titles. They also offer a wide array of magazines, newspapers, blogs, and other publications. Most publications found in the Kindle store such as newspapers and magazines are using a monthly or yearly subscription payment model for anywhere from $2.99-$29.99. Also many of the e-books sell for between $2.99-$9.99 and a large portion are free. However, this does open up a huge opportunity for micropayments.

The Kindle store offers publishers the chance to monetize their digital content, charging for books, magazines, articles, documents, etc. This is yet another growing avenue for micropayments. It is almost certain that e-books will continue to grow in popularity and revenue, but it is yet to be determined whether they will overcome traditional books.

Personally I don’t see traditional books ever becoming extinct, but I do think that e-books will overtake traditional book sales in the not so distant future. Their convenience (ability to instantly download a book or article) and their cost (significantly cheaper than traditional physical books) make e-books much more appealing than ordinary traditional books. I don’t argue that there is always going to be people who are reluctant to change or simply want to read traditional books, but I predict that in the next few years (3-5) we are going to see e-books creep ahead of traditional books in sales. Of course this would mark a huge increase in the number of micropayments users are making to buy these digital publications. This is just another example of how online micropayments are forming the way we do business on the web in the future.

What do you think? Are e-books poised to overtake the book market as the predominant choice of readers or are they merely a profitable niche market? How do you see micropayments playing into this equation?