Building the Information Valet Economy Sustaining news and
Building the Information Valet Economy Sustaining news and information through a shared-user network http: //www. Informationvalet. org http: //www. ivpblueprint. org Bill Densmore October 9, 2008
Key goal Assemble a coalition of publishers, advertisers, technology and financialservices companies in a federated-authentication / shared-user network for internet information commerce.
Key results 1) Online users to easily share, sell and buy content across multiple Web sites with one ID, password, account and bill. 2) Update role, effectiveness, compensation for online advertising through personalization
Problem recognition “The evidence is mounting that the news industry must become more aggressive about developing a new economic model. ” --Project for Excellence in Journalism, The State of the Media 2007
Problem recognition “ ‘Long term, we've got to get paid for news (online) or we can't keep producing it, ’ [Singleton] said. But he said that it has to be an industrywide solution and not just one paper acting alone. ” News Group /14446579. htm -- Dean Singleton, CEO, Media Posted April 28, 2006 at: http: //www. twincities. com/mld/twincities/business
Solutions “We must change how we charge for content. . . Onesize-fits-all on the business side has to evolve. Tiered pricing with premiums for timeliness or comprehensiveness is one option. ” - Tom Curley, AP CEO, Nov. 10, 2007
“. . . [T]he more time I’ve spent on Solutions this, while I think there are legal things, enforcement things, etc. , they are not the meaningful way to fight piracy. The meaningful way to fight piracy is you need to give consumers legitimate options to get what they want. ” News Corp. -- Peter Chernin, president, Aug. 4, 2008, interview with Charlie Rose
“Maybe the solution isn't to escape Solutions the market, but to empower it. Modern computing offers unparalleled capacities to track and calculate. Imagine a vast menu of news and commentary offered to you ad-free for pennies per item, the charges micro-billed, added up and presented like a utility bill at month's end. & Lee Univ. -- Edward Wasserman, Washington Miami Herald column published Feb. 18, 2008
“Buffet. Solutions muses out loud: ‘The ideal combination would be if The New York Times, the Wall Street Journal and The Post had a joint web site, and you couldn’t get any one individually. That, you could sell for a fair amount of money, and it would have one hell of a readership. ’ ’’ -- Warren Buffett, quoted in Fortune Magazine, July 26, 2007 / http: //money. cnn. com/magazines/fortune_archive/2007/08/06/100141340/
The Situation Today n n n Journalism is expensive, and massmarket web advertising alone will not sustain it Subscriptions for content puts up walls that destroy the unity of the open web Sustaining journalism requires rethinking the very notion of news as a service, not a product
The Situation Tomorrow n n The news industry becomes a trusted and ubiquitous advisor, authenticator and retailer of all web content Audiences are measured through a federated network that also tracks and shares revenues for ads and content Consumer controls demographics, and can be rewarded for looking at ads and sponsored content. Sophisticated pricing and bundling options give consumers more buying power by subscription or per click
The Information Valet n n n An Information Valet is each user’s mosttrusted gateway to the web The gateway can be any site that chooses to participate such as the newspaper, Facebook, a U. S Bank or VISA Participants benefit by helping users find the content and services they want
The Concept n n n Collaborative system owned by larger users, not equity stakeholders – nonthreatening because it cannot be “rolled up” by a dominant player Establish value for the delivery of specialized audiences, and reward gateway sites for providing this service Demographics are shared based on the opt-in permissions set by consumers
For Consumers n n n n A single user ID that works everywhere Get paid for viewing ads One-stop method for buying text, music, movies, services One bill for all online content purchases Privacy controls to protect personal data A more personalized online experience Faster, easier access to the content you want Opportunities to exchange personal data for access to premium content
The ofisone “What will value happen next that the audience will say: If you’re going to sell us to advertisers, then you’ve got to pay us. And that’s the longterm challenge that I think newspapers are going to be facing. ” -- Paul Maidment, exec. Editor, Forbes Magazine Interviewed during “On the Media, ” Feb. 25, 2005 http: //www. onthemedia. org/yore/transcripts/trnascripts_022505_about face. html
For Valets n n n Valets compete to be best at meeting consumers’ diverse information needs Each valet is compensated for finding, shaping and referring audiences Valets help advertisers present targeted messages to end users who opt-in Internet advertising becomes more valuable Convert 50 M newspaper customers to web-info customers
HOW IT WORKS n n n Flash animation shows flow of information from consumer to websites to network authentication and logging service. Key points: No permanent central user database Only enhanced log report saved for periodic settlement User controls level of demographic sharing http: //tinyurl. com/4 amatq
Project tasks n n n Convene cooperative members Form, capitalize association Manage network/technology build Establish rules for enumerating, exchanging value Assure privacy; opt-in demographic sharing Contract some operating pieces
What’s the result n n n News organizations paid as service providers – gateways to premium ($$) or sponsored (ads) info anywhere Users get a simplified, personalized web experience New revenue sources unlocked (wholesale/retail); personalized ads/services
What can you do? n n Help identify founding collaborators Invent new forms of ad personalization/targetting Assert that news has value or it goes away Be creative about originating, remixing information that’s unique, needed
Building Info Valet economy Thank-you! Sustaining news and information through a shared-user network http: //www. informationvalet. org Bill Densmorew@rjionline. org Donald W. Reynolds Journalism Institute October 9, 2008 573 -882 -9812
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