Micropayments: at best a band-aid

The business of journalism

I don’t pretend to know much about the business behind journalism. I know the state that the industry is in, as well as some of the reasons why it is that why, but not much beyond that. I can’t reel off all of the theories of how to save some newspapers from their seemingly impending dooms.

But I do think that I would make a pretty good case study as an absorber of news content, both online and in print. I have my old school print ties that defy my age group (I still read the hard copy of Washington Post whenever I go home and enjoy picking up a paper when readily available), but like most others I get most of my content online. I read several news sites and peruse the available content, though I also pick and choose based on several of my interests. Given my ties to news in its various forms, I asked myself how I would react if micropayments suddenly became the widespread trend within the online side of journalism.

Micropayments: a gradual move in the right direction?

Despite having my natural and selfish objections to having to pay for content that was once free, I think that I would be alright with the micropayment system, especially given my sympathy for struggling journalists. The utopian view of a micropayment world that Walter Isaacson presents in his “Time” article sounds especially appealing. I found the iTunes comparison to be especially attractive. The interface and usage is simple, and the product is able to survive despite competing with a host of other mediums that allow for free content of a highly desirable product. It also was developed after these avenues for free content became available, showing that micropayments can exist in a post content-for-free culture. Additionally, a healthy culture for micropayments would mean that the industry would become less driven by advertising, something that I think would greatly aid the health of journalism, as the downfall of newspapers has largely coincided with an increased devotion to advertisers’ demands.

Professor William Baker of Columbia University voiced his support to the Los Angeles Times of moving toward Micropayments. “There’s a potential rainbow here,” he told the Times. “Normally no one would take this risk because it’s a scary jump. On the other hand, the economy is so terrible now that it may force some entities to try.”

...or maybe not.

I began thinking about the iTunes comparison, however, and it seems as though the example might fall through upon closer investigation. It seems that iTunes is more of an anomaly than a true model for success. As Isaacson mentioned, iTunes is seemingly the lone success story in a sea of micropayment failures. The interface and usage can be too complicated and the branding and product name can be too untrustworthy. iTunes also has the distinct advantage of having a more expansive library than seemingly any music network out there. Would most news providers be able to justify micropayments when free content will still be available other places? It seems like micropayments might be hard-pressed to make a transition to the news side of things.

I was equally if not more put off by micropayments as a longterm solution after reading Michael Kinsley’s op-ed piece in the New York Times. As much of an idealist as Isaacson was, Kinsley brings some much needed realism to the equation. He raises my key objection to the concept of micropayments, which is how can you pull off going back to a payment system for content that has been free for a while now? By having almost every available news media accessible for free, a Pandora’s box was opened, and now customers are going to balk at having to pay for something that was once free. Even though it’s not that much money, readers will still see it as a slap in the face of sorts. The money is also not to be taken lightly in these economic times.

Drop in a bucket

Kinsley also addressed my other key concern: are micropayments really a saving grace, or simply a band aid? He did a pretty good job of breaking down the figures and showing that micropayments would only be a drop in a bucket of a larger problem. While I’d like to see more experimenting done with micropayments, it’s hard to see them as a longterm fix for a larger problem. The issue of micropayments doesn’t address content and how it’s presented, something that has been key to journalism’s downfall. While a changing business climate is largely responsible for newspapers’ struggles, the issue of content can’t be ignored.