Users paying for content, ppfffff

Point #1: Distribution channels will be taxed.

Apple’s business model isn’t anything new. They taxe the music transactions that flow through their distribution channel, they tax the apps the flow through, and now they will tax the content that flows through. Taxing a distribution channel is what aligns the two parties incentives: Apple is incentivized to grow their distribution channel because they make some cash, the publisher in incentivized to continue to produce more content as Apple continues to help them make more and more sales. Without that tax, where is the business incentive for Apple in this equation?

Point #2: To suggest that users are going to pay for enough content to get rid of ads or substantially reduce that number of ads online is just funny.

Anytime there is a company looking to crack the advertising nut and get users to pay for “ad free” content I secretly get excited (like everyone else). It’s a great story, “we can get rid of all of the crappy ads online on your favorite websites if you pay the site a $5/month subscription fee”, or similar. Who wouldn’t get excited? It’s almost as popular to bash online ads as it was to bash George Bush back in the day (I live in Massachusetts, but I must note that I grew up in the Bush’s summer town of Kennebunkport, Maine, I’m politically confused, and so don’t get involved).

I’m in the online advertising industry (BuySellAds.com) and I don’t even know how big it is… it’s huge, 25-30 billion or something. To suggest that users paying for content would even reduce that by 5 billion is insane. The internet is free, ads keep it free, and when it comes to hocking out your wallet or seeing a few ads in the right column I’m fairly certain what the majority of people will choose: free.