“What about iTunes? Doesn’t that show people will pay for content? Well, not really. iTunes is more of a tollbooth than a store. Apple controls the default path onto the iPod. They offer a convenient list of songs, and whenever you choose one they ding your credit card for a small amount, just below the threshold of attention. Basically, iTunes makes money by taxing people, not selling them stuff. You can only do that if you own the channel, and even then you don’t make much from it, because a toll has to be ignorable to work. Once a toll becomes painful, people start to find ways around it, and that’s pretty easy with digital content.”
—

Paul Graham - Post-Medium Publishing

Certainly some content is worth paying for but I really like Paul’s point here - there is a difference between a “tax” and “selling people stuff”. As a result, I’ve been thinking about this all day long.

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Post Notes

  1. catnipforhipsters reblogged this from artistspaid and added:
    don’t agree that everyone uses the iTunes store...Paul suggests, I do find
  2. giantrobotlasers reblogged this from nabeel
  3. nabeel reblogged this from bijan and added:
    From the perspective of Paul Graham’s description, wouldn’t all virtual goods transactions be “a tax?” They seem to...
  4. lilyb reblogged this from mikehudack
  5. mikehudack reblogged this from kevintwohy
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  11. evangotlib reblogged this from bijan and added:
    great point comparing
  12. bijan posted this