Monday, January 6, 2014

"E-Books Are Reading You" -- How That Enables a New and Far Better Economics

"As New Services Track Habits, the E-Books Are Reading You." While some view this as creepy, it offers powerful benefits that are yet to fully emerge. Wouldn't it be good to pay for books depending on how you read them?

This recent NYTimes article by David Streitfeld highlights the instrumentation behind e-books and other digital media, and how distributors, publishers, and authors can use it to better understand their markets. People are talking about how Big Data enables "The Quantified Self" -- think of this aspect as "Quantified Media."

With the FairPay pricing model, this gains far greater potential -- and clear benefit to the reader. How much you have to pay for a book can depend on how you read it -- how much, how long, how deeply, how repetitively. That data is indicative of the value you receive from the book. Why should what you pay to read it not depend on how you read it?

Start a chapter or two and quit, and pay nothing -- just like a Kindle free sample. Skim the whole book in 15 minutes and pay little or nothing -- much like Amazon's "Look Inside." Read a novel all the way through and pay a normal price. Read it three times and pay a bit extra. Study a how-to book, highlight sections, and go back regularly over many months, and pay accordingly (but with a volume discount). Use six travel guides on four countries during a one-week cruise and pay the equivalent of buying one travel guide (a detailed example is in this older post).

Already, individual reader usage data is affecting pricing between distributors and publishers (as Streitfeld notes for book subscription offerings):
On Oyster, once a person reads more than 10 percent of the book, it is officially considered “read.” Oyster then has to pay the publisher a standard wholesale fee. With Scribd, it is more complicated. If the reader reads more than 10 percent but less than 50 percent, it counts for a tenth of a sale. Above 50 percent, it is a full sale. 
Offering a subscription service "introduces a sort of interesting business opportunity to collaborate with publishers rather than be at odds with them.”        
Distributors collaborating with publishers instead of being at odds with them? What a thought! Of course that can lead to win-win pricing models.

With FairPay, a similar win-win collaboration involves the reader as well. FairPay lets readers pay whatever they think is fair for books, based on how they read them. If the distributor agrees that is fair (including consideration of any explanations offered) their subscription or buying privileges are continued (but in any case the buyer's price is final for the current transaction). This removes the barrier of price from reading a book.  It invites anyone with an interest to try a book, and only pay to the extent that they feel they got value from it. It allows those on limited budgets to apply discounts, and business readers to be expected to pay more, having derived greater value. It also strenghtens the bond between the reader and author, where readers feel an obligation to pay to authors who give them a valuable reading experience (especially if they know a fair share goes to the author). It also strengthens the bond between the reader and a publisher/distributor who gives them the kind of e-books they value, and supports authors they value.

Such ideas of variable pricing are unfamiliar in most consumer markets, and take some getting used to, as the Times article (and some thoughtful comments) make clear. However, we can look to the proven success of "performance-based pricing," which has seen growing acceptance in B2B markets.  As outlined in a Harvard Business School article by Benson Shapiro, current performance-based pricing strategies offers win-win benefits and reduced risk, but are primarily suited to high-value B2B situations, in which complex joint pricing analysis can be done for each customer situation. FairPay takes similar performance-based "dialogs about value" and streamlines them for a consumer e-commerce setting, with a high degree of individualized automation that can work on a much more intuitive and fuzzy level.  This offers a way out of the digital pricing dilemma that has brought book publishing and other content industries (music, journalism, etc.) to the brink of disaster.  (See many related posts on this blog.)

3 comments:

  1. Ronaldo Ingin Rasakan Gelar Juara Bersama Timnas Portugal


    Agen Bola Melaporkan Berita Olahraga Terkini dan terbaru Indo11.com - Tak ada yang meragukan kemampuan Ronaldo saat dirinya berseragam klub. Bersama Manchester United, Ronaldo seakan membuat pendukung MU melupakan David Beckham. Bahkan beberapa titel juara juga telah berhasil ia genggam saat menjadi bagian dari Real Madrid.
    Namun untuk urusan timnas Portugal, Ronaldo belum pernah menggapai trofi untuk negaranya. Beberapa edisi Euro dan Piala Dunia, Portugal harus pulang sebelum mencapai partai puncak.
    Pada tahun 2004, Portugal pernah masuk kefinal tapi kalah dengan Yunani dengan skor 1-0. Tahun ini, Ronaldo cs punya kesempatan lagi main di partai final setelah mengalahkan Wales di semi final. Mereka akan bertemu dengan tuan rumah Prancis yang akan digelar pada akhir pekan ini.
    “Laga final ini akan sangat berarti yang selalu saya impikan, menang bersama timnas,” kata Ronaldo pada UEFA.com.
    “Saya sudah pernah menjadi juara di berbagai kompetisi di klub dan di level individual, juara bersama Portugal akan menjadi pencapaian luar biasa.
    “Saya yakin kami bisa, rekan dan seluruh rakyat Portugal percaya. Kami harus berpikir positif bahwa pada hari Minggu nanti akan menjadi raihan juara untuk pertama kalinya,” tandas pemain 31 tahun tersebut.

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  2. Sang Adik Pastikan Hazard Bertahan di Stamford Bridge


    Agen Bola Melaporkan Berita Olahraga Terkini dan terbaru Indo11.com - Adik dari Eden Hazard menegaskan bahwa winger asal Belgia itu akan tetap bertahan di Chelsea musim depan.
    Musim 2015-16 kemarin, Hazard tampil di bawah performa terbaiknya. Ia pun akhirnya gagal membuat Chelsea bertahan di zona empat besar.
    Menurunya performa pemain berusia 25 tahun tersebut membuatnya sempat disebut akan angkat kaki dari Stamford Bridge. Hazard juga sempat dikait-kaitkan dengan klub seperti Real Madrid maupun PSG.
    Namun Kylian Hazard, adik dari Eden, memberikan jawaban terkait teka-teki masa depan kakaknya tersebut. Ia menegaskan bahwa Eden akan tetap bertahan di Stamford Bridge.
    “Ia akan tetap tinggal di Chelsea, ia bahagia di Chelsea. Ia mencintai London. Bagus baginya berada di sana dan ia mengatakan bahwa fasilitasnya sungguh hebat,” tuturnya pada Goal International.
    “Ini adalah salah satu tim terbesar di dunia. Ia akan menjadi istimewa lagi bagi mereka di tahun berikutnya,” tegasnya.

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  3. Didier Deschamps : “Kami Memiliki Kans Juarai Euro 2016”


    Agen Bola Melaporkan Berita Olahraga Terkini dan terbaru Indo11.com - Pelatih Timnas Prancis, Didier Deschamps mengutarakan pendapatnya mengenai partai Final Euro 2016 yang akan digelar tiga hari lagi. Deschamps berpendapat bahwa peluang timnya dan Portugal untuk menjuarai Euro 2016 sama besarnya, sehingga partai Final nanti diprediksi akan berlangsung dengan sengit.
    Les Bleus sendiri resmi memastikan diri sebagai finalis kedua Euro 2016 setelah mereka menaklukan Jerman dengan skor 2-0 pada dini hari tadi. Mereka kurang selangkah lagi untuk meraih Trofi Euro ketiga mereka, di mana mereka harus mengalahkan Portugal untuk meraih tujuan tersebut.
    Dihadapkan dengan Portugal di Partai Final, Deschamps mengaku siap dan ia menilai timnya punya peluang untuk menjadi juara. “Kami memiliki kans kami untuk menjuarai Euro 2016, dan Portugal juga peluang yang sama” beber Deschamps kepada ESPN.
    “Meski berstatus sebagai tuan rumah dan kami baru saja mengalahkan Jerman tidak berarti kami punya kesempatan yang lebih besar untuk memenangkan Euro nanti. Kami percaya bahwa kami bisa memenangkan turnamen ini begitu pula dengan Portugal” tutup pelatih 47 tahun tersebut.

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