Strategy - Written by Lou Sabatier on Wednesday, August 19, 2009 8:45 - 0 Comments

Online Content – Pay to Play

By Lou Sabatier
Pay to Play - Illustration by Marina LindermanNiche Content Rules

Pay to Play does not refer to online gaming [growing in large numbers and very profitable.]

Rather, it refers to bringing sensibility to the discussion about paying for content online, in some way, shape or form. The business model that depends on bringing traffic in huge numbers to a single title (or even multi-title, mid-size) publishing site to generate advertising (the sole source on online revenue) does not work. Yes, publishers can band together and sell as part of an advertising network or even open ad exchange, but that still does not create a viable business model. [Some large publishers and portals excluded.]

Publishers, of every size and ilk, are exploring, testing and realizing that the way they curate content online with a strong brand behind it can create value to their audience. Value = $
And that is without concepts like the highly touted free-mium or the perfect micropayment system.

Information provided by SIPA (Specialist Information Publishers Association) about why people pay for content on some niche sites include:

•    Privileged access to source material, e.g. insider industry information
•    The site has a specific personality
•    The site aggregates information which saves the visitor time
•    The site hosts a specialist community
•    Charging acts as a filter to ensure members have a reason and interest in participating
•    Exclusivity
•    Visitors are passionate about a subject and want to submerge themselves
•    Training
•    The site offers Help.

SIPA goes so far as to say that the future of Internet publishing is niche. I would recast that statement to say that the future of profitable Internet publishing is niche.

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