Keep in mind a couple things. First, it doesn't cost very much to operate the information service called a website. But it doesn't matter how much something costs to produce, it perceived value sets the price.
The reason why paywalls didn't work is simple. Almost all websites have NO perceived value. A news site, come on.. Getting news is a total commodity. I can read about Kim and Kanye without coughing up a subscription fee From any number of places. Ever notice HBO never had a straight news program? Getting news is a total commodity and print media feels this pain quite directly.
Now for entertainment. People will pay for quality. HBO being a great example. But look how much content you get for your $12 mo. Netflix, huge. Look at all the content you get. No single website has that much proprietary desired content, and that's why pay sites didn't work.
Ads rule, because it's perceived to be free by the consumer. It isn't of course. Giving up your attention and personal data is a cost, but not felt directly. If the internet explosion of the 20 years has taught us anything, it's the amazing amount of value people will give away for free, whan they don't perceive they are giving it away. Facebook is entirely built on user generated content, and most of the others too.
Ads will not be replaced by pay for content on a wide scale. There is not enough value in most of the information on the net.
The reason why paywalls didn't work is simple. Almost all websites have NO perceived value. A news site, come on.. Getting news is a total commodity. I can read about Kim and Kanye without coughing up a subscription fee From any number of places. Ever notice HBO never had a straight news program? Getting news is a total commodity and print media feels this pain quite directly.
Now for entertainment. People will pay for quality. HBO being a great example. But look how much content you get for your $12 mo. Netflix, huge. Look at all the content you get. No single website has that much proprietary desired content, and that's why pay sites didn't work.
Ads rule, because it's perceived to be free by the consumer. It isn't of course. Giving up your attention and personal data is a cost, but not felt directly. If the internet explosion of the 20 years has taught us anything, it's the amazing amount of value people will give away for free, whan they don't perceive they are giving it away. Facebook is entirely built on user generated content, and most of the others too.
Ads will not be replaced by pay for content on a wide scale. There is not enough value in most of the information on the net.