Modified Micropayment Model

This time last year, Hayes and Graybeal were scouring through academic and industry literature and thinking conceptually about how news media can viably be profitable on the Web.  The result was a new theoretical micropayment model for news called the “Modified News Micropayment Model” that became a paper presentation at the International Symposium on Online Journalism in April 2010.  Our proposed model creates valuable synergies between newspaper content and the Social Web to provide revenue generation capabilities for newspapers while allowing consumers to be rewarded for socially trading content.  The model has four drivers:

  • Microearn:  Readers receive referral rewards for distributing micro-paid content to their online social networks.
  • Socialization: Distributing content socially enhances content value while providing logistical streams to get products to consumers.
  • Local Focus: Media outlets control the market for their content at the local level.
  • Centralized Banking System: Consumers can seamlessly purchase and share content across multiple platforms and from multiple content sources while managing transactions in one central banking system.

Since, the broader version of the model has been adapted that can be applied across media products by media organizations an individual content creators.  Each of the models are in the process of being published at major academic media management and economics journals.  Further, quite a bit of industry attention has been garnered for Lede to turn much of its focus on pursuing real world application of the models.

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PBS MediaShift: Can Social Micro-Earnings Help Micropayments Work for News? by Tanja Aitamurto

(August 2010) PBS MediaShift published a great article (click below) on the “Modified News Micropayment Model” that Geoffrey Graybeal and I proposed at the International Symposium on Online Journalism in April.  The interview was a great opportunity to answer some of the questions people have had for us regarding the model as the quotes in the piece flesh out.  Thanks to MediaShift for the opportunity to get more exposure and engage the conversation on the issue of paid content.

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