Comments on: Can Virtual Currencies Help Bridge The Gap Between Free And Paid Content?

By: Eric

Eric — Thu, 12 Nov 2009 11:30:58 +0000

Try to think that virtual currencies *can be valued* higher than for just virtual goods for games.

At all levels, we buy into the concept of virtual currency. Look at airline miles, hotel points, etc.

At Embee Mobile, we are converting our currency (Embee Minutes) from Facebook into real goods and services. You can find out more info about our app: http://apps.facebook.com/mobilewallet?ref=22

By: Phil Ohme

Phil Ohme — Thu, 12 Nov 2009 05:00:52 +0000

Jott Assistant has had that type of bulk virtual currency for some time. http://jott.com/jott/jott-assistant-signup.html ("Pay-as-you-Go" plans allow you to buy chunks then use it at your leisure). Much less of a commitment than signing up for a monthly plan. I would guess that most Jott users buy those chunks.

By: Greg Golebiewski

Greg Golebiewski — Thu, 12 Nov 2009 00:01:00 +0000

I have to add, Znak it! (www.znak-it.com) was developed JUST to do that: to help content providers monetize their offer without the need to develop their own payment gateways or costly system integration, and still be able to get up to 94% of the revenues the content generates.

We created the system two years ago — a way ahead of the current debate — and presented at the Web 2.0 Expo in SF, Digital Innovators' Summit in Berlin, and many other places.

Perhaps, we were too early, too innovative (the Znak it! idea originated during one of these all-gets-in creativity workshop by Idealab) , and too disruptive for the community; at that time the add-networks and SEO were kings — not the content, as it should be. But I am glad to see that this is changing. Even paidcontent.org have finally noticed that virtual currency CAN be a way to pay for online content ;-)

Maybe one day we all will simply Znak it! or Znak as we surf the net, instead of searching for the wallet and the credit card number, dialing who-knows-whom to get yet another PIN, or being bombarded by unwanted ads and Secret Crush scams.

By: Tameka Kee

Tameka Kee — Wed, 11 Nov 2009 22:17:08 +0000

@Mark Interesting post, though the cashing out and trading of the currency is more applicable to the virtual world or game model, than it is for online publishers.

That's why I tried to focus on virtual currencies — as opposed to just virtual goods.

By: mark sendo

mark sendo — Wed, 11 Nov 2009 16:10:35 +0000

i suspect you missed an important point, http://www.virtualgoodsnews.com/2009/11/bodega-lets-gamers-cash-out-virtual-currency.html

bodega launched the first marketplace to enable users who paid for or earned virtual goods the place to trade them…

By: ed

ed — Wed, 11 Nov 2009 00:59:51 +0000

I do not see old guard media making this kind of leap and I believe they are too scared of the inevitable outcome.

It would be frightening to find out a senior veteran columnist can't sell more than 500 articles a week from virtual currency while some writer fresh out of college sells over 200,000 due to consumer demand.

No one at a tech company cares if 80% of their customers want to buy their avatar pink turtlenecks but an editioral board does care if the customer want to buy content that clashed with their bias and direction such as pushing a conservative/liberal agenda. That is the rub.

I only see a scenario consisting of new breed intermediary content aggegators using metrics to determine what kind of content consumers are paying for and use this data to fulfill consumer demand.

Once the content aggregators involved into demand fulfilment, the editorial board at these independent papers will seal their own fate, just my 2010 prediction.

By: Tameka Kee

Tameka Kee — Tue, 10 Nov 2009 23:48:41 +0000

@ed I think that the media co's are being forced to shift and try diff't things now, as they've watched the record industry fumble and almost die.

That doesn't mean they'll magically all adopt virtual currencies, but the ones that do try it, and see real revenue growth, will think about making it a permanent option.

As for being a tech blogger — I don't push any of my "friends'" companies in stories. If I try a product or service and genuinely believe in it, I would report it that way. If I like a product, but see where it can be improved, or where the revenue model has holes, I'd also report that.

By: ed

ed — Tue, 10 Nov 2009 23:29:53 +0000

Old media cannot adapt to a virtual currency model due to being rooted in a position of privilege instead of talent.

Virtual currency will put the consumer in charge of determining what content matters as they vote with their debits for certain content.

How will Rupert Murdoch respond if the consumer want to pay-to-read more liberal articles in the WSJ when he want to push a conservative agenda?

How about you tech bloggers who want to push your tech friends in your dailies but find out your consumers are using their virtual dollars to buy paid content about people other than your tech friends?

The bottom line is the current style of entitlement/privilege editorial cannot handle the truth of consumer raw demand for certain type of content and the old media will stick to trying to control the propaganda until they are replaced by a true content delivery model unbiased by editorial control…