The Value of Content

With the rise of sites like Twitter that boast real-time updates and breaking news (albeit some sources may not be credible), will consumers be willing to pay for content? A Pew survey says 82% say no.

I feel like I’ve been having this conversation a lot recently – are people willing to pay for content?  Sadly, as the Pew survey points out, the answer (for now) is a resounding “no.” So why would The New York Times decide to start charging for access to its online content in January 2011? Aside from the obvious (they have to find a way to make money), I’m afraid that they (like a lot of other publishers) are reading too much into the early numbers for digital readership via e-readers and more specifically, the iPad. The success (modest or otherwise) of a limited number of newspapers and magazines on the Kindle and nook are the first signs that the answer could someday be “yes.” Add to this the excitement around the magazine apps being developed for the iPad and other anticipated tablet devices, and the fact that some publishers are charging (or are planning to charge) as much as $3.00 or $4.00 per digital issue and you’ve got just a bit more cause to be optimistic. Then factor in the notion that a converged device like the iPad will start to blur the distinction between “applications” and “Internet” to the point where you (the reader) might not remember if you’re on a site or in an app, and you’ve got publishers basically salivating. Whoa – I just woke up from an awesome dream!

I believe it’s too soon to move to a paid subscription model if you are looking for instant success. Even January (seven months out) is too early. The first problem is audience size – there still aren’t enough e-readers and iPads out there (and I know they number in the millions already) to turn the tide yet. Most magazine issues that have been distributed in “app” format have only achieved distribution in the tens of thousands. My sense of the revenue that they generate would hardly amount to a single four-color page ad. Point being, right now, I’d argue that the proof of scale is glaringly absent. In other words, that the revenue generated by subscribers will outpace the revenue lost as a result of lower traffic hasn’t been established. The second problem is the audience itself – us. We are cheap. I think about all of the squawking about the price of e-books being “unfair” because of the substantially reduced overhead they represent to publishers, and I’m reminded that we basically cannot get our heads around the value of content. It seems we don’t think that authors should be compensated fairly or handsomely for keeping us informed, entertained and enlightened.

So, you know what? I’m with you NYT.com! Sure, you spilled the beans in a clumsy way and I actually think that you may fail initially, but you have seven months to make your case. And it’s an important case to make: Good content has value. Good content shouldn’t be free. And those who create it deserve to be compensated and rewarded.

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Crowd-sourcing to the rescue

We believe there’s wisdom in crowds, but turning crowd-sourcing into a viable business model is a challenge as yet unanswered. Twitter, Gowalla and Foursquare are getting there, but a sparsely funded non-profit project, Ushahidi, is the one breaking new ground in harnessing the power of the masses.

Ushahidi, which means “witness” in Swahili, was started by a group of tech-savvy activists in Africa to monitor violence in Kenya. They created an online platform that allows anyone with an internet connection or mobile phone to post location-based events or occurrences to a project URL. Their system aggregates the data and displays it via map-based visualization. Users can then access the site to view up-to-date reports and identify areas of activity and need.

The initial Ushahidi project was so successful that the system was subsequently used to track shortages in medical supplies in Africa, the H1N1 outbreak in the U.S. and numerous global events.

The ultimate test for Ushahidi came during the Haitian earthquake disaster. Their system collected over 3,500 events, primarily submissions by volunteers using mobile phones. The immediate response was so robust that the United Nations and other relief agencies used the site to monitor and address their relief efforts. In fact, at one point FEMA told the group, “Don’t stop mapping; you’re saving lives.” Most recently, Ushahidi’s crowd-sourcing technology has been used to log the effects of the Gulf Coast oil spill, in hopes of giving “a more global perspective” of the damage.

Not bad for a small group of mostly volunteer developers who had organized coding parties, called “hackathons,” just months before to enable the site to handle larger events like the Haiti disaster and the Gulf Coast oil spill.

With the advent of more mobile phones and a connected globe, sites like Ushahidi will become even more indispensable to organized relief efforts and NGO projects. Much of the crowd-sourcing technology promises to filter into business and consumer sectors, but the real story may be the impact that a small community of developers can have in helping to reshape the world in very positive ways.

For more on crisis reporting via texting, check out this TED video from Erik Hersman, one of othe Usahidi developers:

 

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