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stories filed under: "payments"
Predictions

Predictions

by Mike Masnick


Filed Under:
competition, journalism, newspapers, online, payments



If Newspapers Went Offline For A Week... People Might Realize They're Fine Without Them

from the it's-hard-to-keep-up dept

Honestly, it's getting difficult to keep up with the massive amount of stories every day from old school journalists -- often with no business or economics background -- either complaining about how things used to be or somehow wishing they could put in place solutions to bring that world back again. It's gone. We'll start with a piece by James Warren in The Atlantic, which you would hope would be a bit more intellectual -- but instead makes the same old errors. Warren seems to imply that investigative journalism can only be done by newspaper reporters -- apparently not realizing that the investigative reporting he's talking about is a very new concept, rather than true "traditional journalism." Also, in trashing online sites, he seems to totally miss why sites like the Huffington Post enjoy such a large community. He blames it on their combination of stiffing writers (including himself) and simply building off the works of those wonderful newspaper reporters.

But that's obviously ridiculous. If online sites were only "winning" the traffic battle because they were ripping off others' content, then that would be easy to fix: those very same newspaper sites should do the same damn thing. Hell, it should work better, since they'd have the original content. The problem is that it's not the reporting that's attracting the community. It's the community. For way too long, the newspapers have ignored or diminished the role of the community. They were forgetting that, in the end, it really is the community that's their "product." They sell the attention of that community. But, for years, they had little to no competition in doing so. That meant they could basically ignore serving the community... and they did. Now that there are sites that actually do serve the community, people prefer going to them than the sites that treated the "community" like lower class riffraff to be kept away. Funny how that works.

Warren also gets quite mixed up in pretending that when newspapers put content for free online, they get nothing back for it. He goes on for a few paragraphs about the disaster of giving away content "for free" (gasp!) even making a stupid joke that maybe the NY Times' columnists should work for free if they want their work distributed for free. Apparently Warren (like so many others) seems to be missing the point again. News organizations sell readers' attention. You don't get that attention if you don't get the readers. And you don't get readers by charging for content. So, when newspapers give away content for "free" -- it's not for "nothing" -- it's because it's supposed to be a part of a larger business model. The problem is that the newspapers have fallen down on that end of the business model. But the answer isn't making it more difficult to get more community attention. That's like purposely burning your most valuable asset.

Along those same lines, Romenesko points us to a painfully bad idea from another journalist: getting all big newspapers, and the Associated Press, to collude with each other to stop publishing any news online for a week. The idea, of course, is that suddenly the rest of the online world will recognize what they're "missing" without these big newspapers. Of course, that (once again, incorrectly) assumes that journalism only comes from newspapers (aren't these big time journalists supposed to research this stuff before publishing such obviously wrong things?). If all the big newspapers don't publish online for a week, what they may actually discover is that people get on just fine without them.

Why? Because the demand for good content is still there, and someone smarter than these journalists will supply it. Imagine if you're a young news organization entrepreneur, and all of the biggest names in the market have just decided to take themselves out of the competition for a week. Talk about a huge market opportunity. So, sure, let the dinosaurs hide for a week (and watch out for antitrust complaints). The journalists who think this is a win-win idea, may quickly discover that all it really shows people is how little the old model is needed. There's plenty of room for good journalism to thrive. It just might not involve newsprint.

40 Comments | Leave a Comment..

 
News You Could Do Without

News You Could Do Without

by Mike Masnick


Filed Under:
payments, software, south korea

Companies:
microsoft



Microsoft Against Free Software... But In Favor Of Paying Nations To Use Its Software?

from the something-doesn't-seem-right dept

With more and more countries aggressively moving to embrace free and open source software, it appears that Microsoft is using its own money to its advantage, such as with this agreement to hand over $60 million to South Korea to get it to use its software, rather than the alternatives. While it may seem silly when you take a step back and look at the situation, it does show some of the mixed up incentives related to software. Individuals and organizations can simply embrace free software, or Microsoft can pay out $60 million towards various projects now, knowing that it will pressure the South Korean gov't and firms into spending a lot more than that on its software. At some point, people will begin to realize this is just a bad deal. The programs Microsoft invests in make out well, as do some government officials, but everyone else ends up worse off.

23 Comments | Leave a Comment..

 
Overhype

Overhype

by Mike Masnick


Filed Under:
online payments, payments, paypal

Companies:
amazon, ebay



Amazon Launches Payment Service... Again

from the let's-try-this-again dept

As was widely expected, Amazon has now launched a new payment service for online retailers as something of a PayPal competitor. Basically, it will let people use their Amazon account info to buy things at other stores. Of course, as others have discovered, taking on PayPal -- while simple in concept -- has proven a lot more difficult in practice. Companies like Google and Yahoo have tried and haven't made much of a dent. Hell, even Amazon has tried this before, though that was a beta launch that never went very far. Actually getting retailers to implement this and then getting customers to use it is the challenge at this point, and it seems likely to be an uphill battle. There's definitely a sense that many people don't like PayPal, but it's so well established that to provide an alternative, you really need to offer something that provides significant value above and beyond Paypal -- and it's not clear that Amazon really does that.

15 Comments | Leave a Comment..

 
News You Could Do Without

News You Could Do Without

by Mike Masnick


Filed Under:
online payments, payments, paypal

Companies:
amazon, ebay, paypal



Is Amazon Getting Ready To Take On PayPal?

from the and-would-it-be-effective? dept

Plenty of other companies have tried to take on PayPal and discovered that it was a lot harder than it looked. Even though there are a lot of folks dissatisfied with PayPal, most attempts to compete with it have fallen flat. Even Google's efforts haven't really made a huge dent. However, could Amazon shake things up a bit? Over the years, it's done a few things to put its toes in the water of personal payment systems, and now some are predicting that it's gearing up to launch a full on PayPal competitor in the next few months. The analyst who wrote that report notes that Amazon isn't "just another" PayPal competitor, suggesting that its knowledge and experience with online retailing will allow it to create something better. It would certainly be an interesting fit with other "web services" that Amazon has been offering lately -- and would even tie further into Amazon's existing knowledge and scalability. That said, for whatever reason, this market has been a tough one to crack, so we should probably wait and see what the specifics are (if any) before determining its likelihood of success or failure.

20 Comments | Leave a Comment..

 
Bleeding Edge

Bleeding Edge

by Michael Ho


Filed Under:
contactless, payments, touch

Companies:
docomo, ntt



Payments By Touch Reaching Out For You

from the touchy-feely dept

The promises of contactless payments consistently seem to fall a bit short. The hardware costs for merchants sound hard to justify, and the benefits to the consumer are usually minimal -- since credit cards aren't exactly a painful process to begin with. However, wireless technologies are cool, so NTT DoCoMo has demonstrated a prototype phone that uses human conductivity to transmit data for services such as payment-by-touch -- so that you can keep the phone in your pocket and simply touch other devices to transmit your personal information. But if the irrational fears of cell phone radiation weren't enough for you, then imagine the possibilities of using skin conductivity. How will users fill up at the gas station? And consider how many more stories about high-tech pickpockets there will be... when thieves just have to touch you briefly in order to get your payment information. NTT DoCoMo admits that it'll be several years before this payment-by-touch system will be "ready, reliable and safe" for Japan -- but phone makers may also want to anticipate the FUD and weigh it against the existing payment methods before releasing a new plot device for Michael Crichton.

7 Comments | Leave a Comment..

 
(Mis)Uses of Technology

(Mis)Uses of Technology

by Joseph Weisenthal


Filed Under:
payments



High Interchange Fees Help Keep Cash Alive

from the ka-ching dept

In addition to the added convenience, electronic payment methods promise to reduce costs by saving merchants money spent on handling cash. Well, that's how it's supposed to work in theory. In practice, many merchants don't see much benefit from electronic payments due to onerous interchange fees. While the major payment processors take a cut of every transaction, merchants typically pay a flat fee for all of their cash management needs, which makes cash sales appealing. The current system works well for companies like Visa, Mastercard and American Express, which enjoy a lucrative oligopoly. But for smaller startups developing payment solutions, the economics aren't favorable. Already the EU is looking to crack down on high interchange fees, and although EU regulators are typically much more proactive about such issues than their counterparts in the US, Congress is starting to explore the issue. Either way, if fees remain high in the US, innovation in this area is likely to remain slow.

15 Comments | Leave a Comment..

 
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