Digital media / Newspaper / Transaction Costs / Unbundling / Usage Based Pricing

Pay Per Article – Possible Business Model

The problem we identified before with newspaper pay per article is the transaction cost. One way to address that problem can be to have a third party pay for the article access. It is not much different from Ad supported except that the article (or certain number of online impressions of it) are sold by the newspaper to a sponsor. The latter then decides how to distribute it, whether to charge for it or not.

I was at a bookstore the other day and I remembered reading WSJ article on summer readings. I looked it up on my BlackBerry using my WSJ online subscription. An article about a list of summer books is of value not only to the readers but also to the bookstores.  So WSJ could sell that article to Borders (and anyone else) for a fee. Borders then make this article available free to all. Their monetization is by adding “Buy Now” links to the article for each listed book and generating book sales.

Such a pricing scheme is still unbundled, each article is priced differently and sold separately  not to every single customer who wants to read it but to  distributor/middle-men.


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