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Old 06-03-2008   #1 (permalink)
People will pay for web content, says Google
 
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Nikesh Arora, president Google for Europe, Middle East and Africa and vice president Google UK, believes that the web economy will evolve just like the print economy - and that means people will pay for content online, writes Stephen Brook.

"The business model on the web is going to be no different to the business model today," Arora tells the audience at the World Editors Forum at the World Association of Newspapers 2008 conference.

People pay for books, they receive free information, supported by advertising, they pay for premium content, such as Bloomberg terminals. "The web will be no different...There's going to be a spectrum," he said.

Arora hinted that the current situation of a mass news on the web could eventually change. "There's some degree of commoditisation on the web, when that happens, price falls." And in such an environment, Arora says, media organisations will need "more readers and more viewers" to bring in profits.

He didn't say it, but does this imply that there could be a great content cleanout in the future, with unprofitable news providers going to the wall?

Arora talks about the current abundance of blogs, and you get the feeling that this, too, will not last. He sees the process just like American Idol, with a small number attracting a large audience and rising to the top.

He predicts that newspapers will unbundle on the web because the platform suits specialists. The 1.3 billion people connected online in the world today will rise to perhaps 3 billion people in the next five years. This will be a great opportunity because content is easy to distribute online. But the great challenge facing newspapers is the "unbundling of the package". While a traditional newspaper contains news, sport, arts, features, that is not the future. "Today I find different specialist places to get that information." Newspaper will have to solve the problem of being a specialist to many on the web.

He throws out another challenge to newspaper brands who rely on their status of trust and credibility. "The challenge you have in internet world do you dilute your brand if you engage with readers?"

He then answers his own question: "This is not a generation that wants to be told, this is a generation that wants to participate in opinion forming."
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Old 06-03-2008   #2 (permalink)
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I know I said this before and I say it again, you can't have people pay for things they been getting free for so long, there's one in a million chance it will work.
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Old 06-03-2008   #4 (permalink)
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People are going to go to what ever is free first. Espcially around the teenagers age, not all of them will cards they can use online so they naturally going to go what's free first becuae cash doesn't work online.
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Old 06-03-2008   #6 (permalink)
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You are both dead wrong. People will pay for what was once free if there are either no other options, the other options are inconvenient, or they feel the price is fair for the product.
Don't believe me you only have to look as far as iTunes. You can get the music free (at inconvenience of opening yourself to viruses and spy ware, no matter how savvy you are), but enough people feel it's fairly priced and it has flourished as a result.
Air used to be free at gas stations, now more and more make the user pay (I bring this up cause one gas chain up here now has pay for air, it's the only one, but I've had to use it twice cause it was the only convenient option and it was fairly priced when I think about it (50 cents)

History proves people are very willing to pay fair prices for product that was free or has free alternatives.
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Old 06-04-2008   #8 (permalink)
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Hsool is wrong on that. Too many people rather take the chance for virus then pay. Think of the people that can't use itunes becuase they don't have a credit card. Air for tires is different only becuase there really isn't a way to get free air any more. Plus the number of people using someone else computer not really going to care about getting viruses since they don't have to worry about the computer. But people will try as much as possible to find a free source before paying. It would have to be a real big inconvience for someone to pay for something especially online that they can get for free. But an inconvience for that doesn't look anywhere close to happening becuase the first thing someone else is going to try to make somethin that's free and everyone will flock to that.
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Old 06-04-2008   #10 (permalink)
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i'm still tryin to get my head around this stupid thing of charging for AIR...

i mean, maybe the fact i do airbrushing and spray-painting its more convenient for me, since i already have a compressor and all.. but they're pretty cheap


still.. if google start charging, i'll be pissed and finding other free shit unless i find a way of paying for shit online (no CC, no paypal, no job, no money in my bank anyway)


hsoolien is right though. people WILL pay for things, but only if its fairly priced or they have NO other option... or more to the point, most people are TOO LAZY to find a cheaper alternative, or they just dont know how to find it...


oh and you'll need Google to find the free stuff in the first place by the sound of it thats the Catch 22!
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Old 06-04-2008   #12 (permalink)
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Quote:
Originally Posted by Raven View Post
Hsool is wrong on that
If only. Now to prove just how right I am

things people pay for when there are viable free options:
First the really big one, Windows. Expensive, especially placed next to a free Linux install with a GUI and all the neccesary desktop apps for 99% of copmuter users (meaning they'll not have to ever worry about installing something)
Microsoft Office. Why do people still pay for this bloated expensive piece of software when there is the legally free Open Office?
Water. Nothing stopping people from pulling out of the ground themselves, hell people will pay more beyond basic water to have bottled water
iTunes share of music off the net keeps going up, that means less piracy more people paying.
Movie rental stores/VOD/PPV are all thriving even though you can get all that shit for free of the net (and on most peoples computers these days there is enough software to make viruses/spy ware non issue)
People pay 20$ per tire up here to put pure Nitrogen in. As a note, the air coming out of a gas station compressor (most of which up here are free with the exception of the one chain) is 80% nitrogen.
Seasonal fruit/veggies/mushrooms. I don't know what it's like down there but people pay for raspberries here when you can pick them for free int he river valley
Electricity. Ok this one does require an initial investment, but prices are only going to go up.
Compost. Yes people pay for other peoples table scraps left to rot into nutrient rich garden material.
Computer parts. Ok you need to know people, but I have 4 computers worth of free parts that others discarded, some are even better then what I'm using.


Anyhow as I said, people will pay for what once was free, or can be gotten for free if they feel the price is fair, or it's more convenient then other options. and while I was not going to say this yet again... believe it or not Raven, there are people with something called morals. Basically they don't feel right about the moral rape that is piracy and would rather compensate people for their hard work. Essentially they realize their shit stinks the same as everyone else, and don't feel right dictating that someone else's efforts are worthless, unlike some self centred, pretentious, arrogant ass holes and whores that devalue others efforts because they feel an absolute bullshit sense of entitlement.

Edit: And that is the last I'll say about that in this thread.

The key point I'm making is as hard as it is for the above mentioned to believe, people will pay. And there is a fuck tonne of proof out there to that point.

Last edited by Hsoolien; 06-04-2008 at 08:53 PM.
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Old 06-05-2008   #13 (permalink)
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lol wow that's alot of info Hsool well at least I hope that they don't start charging to use search engines, I already heard that ISP's are going to start charging people for how much you are online, for example they will start to measure how many Gig's you use per month and if you go past that certain limit they will be banking on your internet use which sucks balls
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