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That's flatly untrue. I've got a good example: SMS When texting started it was almost universally $.25 or $.10 or so per text. One would definitely be aware of

by CPLX 11y ago

That's flatly untrue. I've got a good example: SMS When texting started it was almost universally $.25 or $.10 or so per text. One would definitely be aware of that fact when communicating with friends but you get over it because it's useful. Wait I have another example, $0.99 songs via iTunes. That was the model that created the largest music retailer in the world from whole cloth. It's not that complicated, all it would take is for someone (gee I wonder who) to standardize the price (or price tiers) and have a quick modal OK to continue on to the article for one credit, or equivalent.

Already__Taken 11y ago
You're describing things that were inconvenient and made convenient with a nominal transaction cost. You couldn't just buy one track before. Now you can for $.99. You couldn't send a text message at all before. Try $.10 per email and see what traction that gets.
- CPLX 11y ago
  Sure and I used to watch SNL for free over the air, now I pay $8 a month for Hulu. Things change. The market, like all markets, is defined by people's willingness to pay and their next best alternative. Make the transaction cheap and nearly frictionless and it might be the choice with the highest utility.
- MaulingMonkey 11y ago
  > You're describing things that were inconvenient So... pretty much every web paywall I've ever encountered. Where's my amazon 1-click for news website paywalls? Several of which I encounter using this very site? I don't want to create an account, subscribe, save my details, unsubscribe from services I no longer use, etc. for each individual website.
manigandham 11y ago
Average people don't purchase itunes songs all day every day and they have a high replay value. It's worth the mental energy. You don't want to be deciding whether to pay on every little pageview.
mikestew 11y ago
When texting started it was almost universally $.25 or $.10 or so per text. When texting started, it was free until the phone companies figured out that my wife and spent more time texting for free than we did talking for money. When I'd be on the road, we texted until our thumbs had callouses. Imagine our disappointment when Verizon (and everyone else) started charging for it. (Caveats: U. S. on Verizon using pay-as-you-go phones, and at least 12 years ago.)
pbreit 11y ago
And they both went away.
hapless 11y ago
SMS at $0.10 per text is an excellent example: it was total a failure as a business model. Every provider in north america, even prepaid, now offers SMS services on a monthly basis. It was critical to uptake. A $0.99 song from itunes isn't a micropayment. It's a dollar paid for a music track you are likely to listen to over and over. Additionally, you knew what you were buying because you heard the music for free on the radio or in a club. Journalistic work doesn't fit the iTunes model. News and blog posts tend to be fire and forget. Nobody will pay $1 up front, and once they've consumed the content once, they no longer need to pay for it.
- flashman 11y ago
  'Total failure' is a pretty strong description. 'Dominant text messaging billing structure for over a decade' comes closer. And I think it's an important distinction that per-message charges disappeared because they were out-competed by flat plans, not because people weren't willing to pay per-message fees.
6stringmerc 11y ago
$1 isn't exactly a micro-transaction though, is it? Maybe by comparison to buying a full album...but I think the article is about more 'temporal' type exchanges (reading a post ad-free) whereas the iTunes "purchase"/license does indicate a tangible item, so to speak. In my opinion iTunes is an outlier due to several factors: 1. The tie-in with the hardware (Apple iPod), 2. High-profile discussion about piracy and "punishment" avenues that were being discussed prominently, and 3. Steve Jobs working in the background to capitalize on 1 & 2 for very favorable terms with record labels enabling the price point (which was again maneuvered by Tim Cook with iTunes Music getting good deals for the new service).
vacri 11y ago
SMSes weren't taking payment one SMS at a time. The amount would be aggregated and you'd pay in a lump sum, either as a monthly account, or as a prepaid lump. We definitely weren't doing a 10c transaction for each individual SMS.

by CPLX 11y ago

Already__Taken 11y ago

You're describing things that were inconvenient and made convenient with a nominal transaction cost. You couldn't just buy one track before. Now you can for $.99. You couldn't send a text message at all before. Try $.10 per email and see what traction that gets.

CPLX 11y ago
Sure and I used to watch SNL for free over the air, now I pay $8 a month for Hulu. Things change. The market, like all markets, is defined by people's willingness to pay and their next best alternative. Make the transaction cheap and nearly frictionless and it might be the choice with the highest utility.
MaulingMonkey 11y ago
> You're describing things that were inconvenient So... pretty much every web paywall I've ever encountered. Where's my amazon 1-click for news website paywalls? Several of which I encounter using this very site? I don't want to create an account, subscribe, save my details, unsubscribe from services I no longer use, etc. for each individual website.

manigandham 11y ago

Average people don't purchase itunes songs all day every day and they have a high replay value. It's worth the mental energy. You don't want to be deciding whether to pay on every little pageview.

mikestew 11y ago

When texting started it was almost universally $.25 or $.10 or so per text. When texting started, it was free until the phone companies figured out that my wife and spent more time texting for free than we did talking for money. When I'd be on the road, we texted until our thumbs had callouses. Imagine our disappointment when Verizon (and everyone else) started charging for it. (Caveats: U. S. on Verizon using pay-as-you-go phones, and at least 12 years ago.)

pbreit 11y ago

And they both went away.

hapless 11y ago

SMS at $0.10 per text is an excellent example: it was total a failure as a business model. Every provider in north america, even prepaid, now offers SMS services on a monthly basis. It was critical to uptake. A $0.99 song from itunes isn't a micropayment. It's a dollar paid for a music track you are likely to listen to over and over. Additionally, you knew what you were buying because you heard the music for free on the radio or in a club. Journalistic work doesn't fit the iTunes model. News and blog posts tend to be fire and forget. Nobody will pay $1 up front, and once they've consumed the content once, they no longer need to pay for it.

flashman 11y ago
'Total failure' is a pretty strong description. 'Dominant text messaging billing structure for over a decade' comes closer. And I think it's an important distinction that per-message charges disappeared because they were out-competed by flat plans, not because people weren't willing to pay per-message fees.

6stringmerc 11y ago

$1 isn't exactly a micro-transaction though, is it? Maybe by comparison to buying a full album...but I think the article is about more 'temporal' type exchanges (reading a post ad-free) whereas the iTunes "purchase"/license does indicate a tangible item, so to speak. In my opinion iTunes is an outlier due to several factors: 1. The tie-in with the hardware (Apple iPod), 2. High-profile discussion about piracy and "punishment" avenues that were being discussed prominently, and 3. Steve Jobs working in the background to capitalize on 1 & 2 for very favorable terms with record labels enabling the price point (which was again maneuvered by Tim Cook with iTunes Music getting good deals for the new service).

vacri 11y ago

SMSes weren't taking payment one SMS at a time. The amount would be aggregated and you'd pay in a lump sum, either as a monthly account, or as a prepaid lump. We definitely weren't doing a 10c transaction for each individual SMS.