Pay Per View Internet

by James R. Stoup Jul 17, 2006

I have noticed a disturbing trend that has slowly gained momentum as the internet continues to become more and more pervasive in our everyday lives. It is a shift in the attitude consumers have towards certain services. What we once would have (rightly) expected to pay for we now immediately assume (if true), or loudly demand (if not), that it be free. And this insane shift in thought is most clearly seen in today’s internet-using youth.

Consider the following, as of this moment you have access to the most powerful tool, in the history of mankind, for finding information. It’s a website called Google. You can find facts, dates, people, photos, videos, music and pretty much anything else you can think of, all with a few clicks of the mouse. And how much does this amazing service cost? Nothing. And both Microsoft and Yahoo are desperately trying to beat Google at the game of giving consumers high quality search technology, for free.

Right now, visiting the right sites, you can get all of the following free:

  1. High quality maps (both political and geographical) of the entire earth
  2. Music
  3. Video
  4. Video hosting
  5. Website creation software
  6. Website hosting
  7. Encyclopedias
  8. Email

All of these extremely useful services (we won’t even get into software, yet) are offered to you, for free all because you decided to grace that particular website with your presence. You didn’t buy anything, you didn’t sign up for a plan, at most you gave away your email address, and that was probably fake. Yet, in spite of contributing nothing but “eyeballs” to a site, most consumers expect (as if it is their right) that whatever service they are using will be free of charge.

How we arrived at this state amazes me.

Now, before the torrent of hate mail starts, I should explain that I am fully aware of the business of advertising. I am also aware that an increase in web traffic translates into higher revenue for a website. Furthermore, I am also aware of a small fact that most web denizens are willfully ignorant of. Websites cost money.

There are servers to buy (and maintain), sites to develop, bandwidth to purchase, and many other expenses that must be paid in order for your favorite “free” website to exists. And guess what, last time I checked, none of those bills can be paid in “eyeballs”. This was a fact that many companies forgot when the first internet bubble burst. (can you believe that companies actually have to make money to stay in business?)

But wait! I hear the chorus of angry voices already telling me that these bills get paid by ad revenue. Which, in turn, comes from advertisers. Well you know what? That system sucks. And the time will come when it will be replaced with something more sustainable.

Because the simple fact is that as much money as advertising brings in, that figure is dwarfed by the amount of money generated by actually selling something. Don’t believe me? Check out the difference between Google’s net profit and Microsoft’s.

We are faced with the problem that things cost money. And high quality things cost more money that low quality things. This revelation shouldn’t surprise anyone. And yet, when you replace the generic term “things” with online services (like email or searching) people are shocked. PAY FOR EMAIL? That is so . . .90’s. No one actually pays for email anymore, its like air, its free. How did we arrive at this point? And am I the only one who thinks its a bit strange?

Of course those of you still reading must think that I am quit insane because, I am, in essence, requesting to pay for services that are currently free. And when put in those terms it does sound a bit ridiculous. Let me explain.

Right now the vast majority of the web is paid by someone else. It is paid by advertisers and large corporations and governments, but it is not paid for by the people who actually use it. And as a result we have two inescapable effects of such a system. One, we are not in control of what is offered for us to use. And two, those responsible for the sites we visit will try every way (legal or not) possible to recoup their losses via their users.

Imagine if buying a car worked like using a free email service. Ford, GM, Honda and the rest would all give away free cars. However, in order to get a free car you had to agree to hand over all of your personal information. (the dealerships promise to treat this information with the utmost respect and security) Of course, eventually you will need gas and when you do you will have to drive back to the dealership and listen as random representatives from various companies tried to talk you into buying various products. And your car would be covered in more product names than a NASCAR. Does that seem like a good way to do business?

Seems kind of crazy to me. But, of course, I paid for my car.

Comments

  • To Ben Hall & Bbx, Amen to ALL points. Well done everyone!

    James how ‘bout self-retribution and penance to your part 2 next week, eh?

    Robomac had this to say on Jul 17, 2006 Posts: 846
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