| The last few months have witnessed a | | | | (such as Pay-Pal) emerged, none became |
| bloodbath in tech stocks coupled with a | | | | sufficiently dominant and all-pervasive to |
| frantic re-definition of the web and of every | | | | constitute a standard. Web merchants' ability |
| player in it (as far as content is | | | | to accept micropayments is crucial. |
| concerned).This effort is three pronged:Some | | | | E-commerce (let alone m-commerce) will never |
| companies are gambling on content | | | | take off without it.Enter Amazon. Its "Honour |
| distribution and the possession of the | | | | System" is licensed to third party web sites |
| attendant digital infrastructure. | | | | (such as and SatireWire). It allows people to |
| MightyWords, for example, stealthily | | | | donate money or effect micro-payments, |
| transformed itself from a | | | | apparently through its patented one-click |
| "free-for-all-everyone-welcome" e-publisher | | | | system. As far as the web sites are |
| to a distribution channel of choice works | | | | concerned, there are two major drawbacks: all |
| (mainly by midlist authors). It now aims to | | | | donations and payments are refundable within |
| feed its content to content-starved web | | | | 30 days and Amazon charges them 15 cents per |
| sites. In the process, it shed thousands of | | | | transaction plus 15(!) percent. By far the |
| unfortunate authors who did not meet its | | | | worst deal in town.So, why the fuss?Because |
| (never stated) sales criteria.Others bet the | | | | of Amazon's customer list. This development |
| farm on content creation and packaging. | | | | emphasizes the growing realization that one's |
| invaded the digital publishing and POD (Print | | | | list of customers - properly data mined - is |
| on Demand) businesses in a series of | | | | the greatest asset, greater even than |
| lightning purchases. It is now the largest | | | | original content and more important than |
| e-book store by a wide margin.But Amazon | | | | distribution channels and digital right |
| seemed to have got it right once more. The | | | | management or asset management applications. |
| web's own virtual mall and the former darling | | | | Merchants are willing to pay for access to |
| of Wall Street has diversified into | | | | this ever expanding virtual neighbourhood |
| micropayments.The Internet started as a free | | | | (even if they are not made privy to the |
| medium for free spirits. E-commerce was once | | | | customer information collected by Amazon).The |
| considered a dirty word. Web surfers became | | | | Honour System looks suspiciously similar to |
| used to free content. Hence the (very low) | | | | the payment system designed by Amazon for |
| glass ceiling on the price of content made | | | | Stephen King's serialized e-novel, "The |
| available through the web - and the need to | | | | Plant". Interesting to note how the needs of |
| charge customers less than 1 US dollars to a | | | | authors and publishers are now in the |
| few dollars per transaction | | | | driver's seat, helping to spur along |
| ("micro-payments"). Various service providers | | | | innovations in business methods. |