Micro-payments are an old idea, some say a bad fantasy. Chief, we’re rich: I found a way to get a millicent per page view…
So far, not much has happened. Unless you look at a tidy, not tiny, little billion-dollar business called iTunes. Three years ago, in February 2006, 1 billion songs served, sold, cashed in, since 2003. July 2007, 3 billion. June 19th, 2008, 5 billion songs. January 2009, 6 billion. Tidy it is at 99 cents for every song. A little so now, with three stages, 69, 99 and 129 cents, without DRM, without copy protection.
But, you’ll justifiably object, this is a unique phenomenon, it doesn’t replicate elsewhere. How can we draw lessons from Apple’s idiosyncratic, proprietary, ferociously monolithic, militantly anal practices? True when it comes to Apple’s style, but less so when it comes to substance, to the replicability, to the potential for use elsewhere. Apple’s competitors are rushing to build their own App Store; for their smartphones, they yearn for their own applications distribution platform. This certainly makes the case for the idea’s replication.
But what idea?
What Apple did was lowering the mental cost of the transaction. More