This is my weekly Loose Wire Service column.
By Jeremy Wagstaff
I predict this year that we’ll settle on a way to make people pay for stuff they so far have proven reluctant to pay for—namely information. This won’t be done by pay walls, exactly, but by what we’re now calling apps. Apps are applications that people seem very willing to pay for when they’re doing it from a device that isn’t a desktop computer.
So people are buying these things because what’s a buck when you know you can get to hurl Angry Birds onto flimsy structures sheltering evil pigs on your device in a couple of seconds? Or listen to Yesterday on your iPod Touch a few seconds after buying it?
Compare this with the laborious process of signing up for an online subscription, or having to download, install and pay for some software and then have to enter a serial number longer than most emails you’ve written.
Others are now trying this route. Google has the Android Marketplace, which lets you do more or less the same thing. In fact, it’s even easier—you don’t get prompted for your password when you buy something. And now they’re trying something on your computer: their own browser, Chrome, now have apps which you can buy or get for free. (Google’s own operating system, Chrome OS, will revolve around these apps.)
In fact these aren’t really anything new—they’re what we might call web-services which are accessible via a website, rather than by downloading software. But by packaging them up as apps Google make it easier for us to get at them and, crucially, break down our resistance to buying something online.
This is how we’ll pay for news in the future. Smart companies like The Economist will give the print edition away free with the iPad version, or vice versa, since we’ll start resisting the idea that we have to pay twice for the same information, whether it’s all glitzy and interactive or not. We will expect to be rewarded for paying for something we know we can get from somewhere else if we tried hard enough. If you’re a news organization use whatever lure you can think of to get the reader back into the paying habit again.
This is the point of the payment process. It has to be easier than getting the information/music/entertainment/book through another means. If I find a book for my Kindle ereader on Amazon I’ll check to see whether there’s a cheaper version—which there quite often is. If it’s under ten bucks I’ll buy it. If not, I’ll read the reviews below to see whether there is a free version somewhere—which is sometimes possible. If there isn’t, I’ll check out Google books to see whether the chapters I’m interested in are there.
OK, I’m a cheapskate. But my thinking is basically this: $10 is my threshold for an eBook. It might be more if I got access to a physical version, or was able to clip bits from it and store it somewhere else. But I’m not, so I won’t pay more than that. Moreover, I don’t want to be the mug who pays for something others get for free.
Everyone else has their own logic, but they’re probably not dissimilar to mine. We pay for things if we think the price is right for the convenience, and if we think that we’re not being suckered—which means that other people aren’t shelling out for it.
This is basically micropayments. It’s what we’d been hoping would happen for some time, and it took Apple’s megalomania and micromanagement to get us there. Now we’re nearly there, but we could still mess up. Some newspapers try to charge us for single articles, for example, misunderstanding that micropayment doesn’t mean microproduct. I don’t want to pay every time I visit your site: I want to pay for something that gets me seamless access to your product.
In other words, we’re paying for not having to pay (or register, or download, or enter codes, or any of that kind of nonsense.) This is why the term pay wall is so revealing—and why it’s doomed as a concept. We’re not buying information with our iPhone or Android app, we’re buying frictionless access to something—an icon on our display that may be a shortcut to a web page, or open an application, we don’t care. All we care about is that it gets us to where we want to go, when we want to go there.
We’ve some ways to go before this works well. I can’t stand the idea that my Kindle book doesn’t belong to me in the way a real book does, and I refuse to buy any music that I can’t move around as I wish. I succumbed to buying some apps for an iPad I borrowed but Steve Jobs will rue the day if I can’t easily move them onto another iDevice if I ever end up getting one.
But the good thing is that we’ve found a way to make this palatable to people, and I am optimistic that the media, booksellers, music sellers and web developers can turn this into revenue streams that keep them going.