A lot of people have said that they wished that the New York Times’ new pricing system was more about offering more value for people who do pay rather than putting barriers in the way of people who don’t pay. Those remarks immediately made me think of Amazon Prime.
Amazon Prime subscribers pay $80 a year in exchange for “free” two day shipping on every Prime-eligible item they purchase from Amazon.com. It is, essentially, a loyalty program that you have to pay to join. I’m certain it exerts a powerful influence on the buying habits of subscribers. If a subscriber buys something from a site other than Amazon.com, they’re likely to pay more for shipping, receive the item later, or both. Plus, they’ve already got the sunk cost of the Prime membership on their mind. When they go to other sites, they probably think, “Shouldn’t I look for this on Amazon.com first to see if I can use my Prime membership?”
I always wonder how many Amazon Prime subscribers buy enough stuff over the course of the year to make the $80 they spend on their Prime membership a good deal. My guess is what they’re really buying is the ability to make impulse purchases without worrying about whether they should have waited to group items for free shipping, which in turn leads them to spend even more money with Amazon.com. Amazon.com further benefits from Prime because it encourages third party sellers who use the site to turn their fulfillment operation over to them as well so that their merchandise can be eligible for Prime shipping.
One of the core values at O’Reilly is to create more value than you capture. The fact that Prime benefits Amazon.com in many ways has nothing to do with why people pay for it — they pay for it because it delivers value to them. What can the New York Times offer that creates more value than it captures?
Clearly the New York Times would argue that their articles and blog posts deliver value well beyond their subscription fee. Unfortunately, they have lowered the perceived value of their product by providing free access to their articles for years, and more importantly, close substitutes for what the New York Times offers remain freely available.
Anyway, my plan was to make this a really awesome post with a suggestion for the New York Times that would save the paper and revolutionize online journalism. Unfortunately, great ideas elude me. I even sat and thought about what service I would gladly pay for from the New York Times, and I couldn’t come up with anything. Maybe I’m just happy I don’t work for a news site.
Will a library card lead me to read more?
Like many people who spend too much time online, read fewer books than I’d like. It’s not that I don’t read as many words as I once did. I read blog posts in Google Reader, updates on Twitter, message board posts in many places, email, and long articles in Instapaper. And my temptation is often to play a computer game, watch a TV show, or catch up on various online reading when I have leisure time. While I enjoy all that stuff, it’s just not the same as diving into an interesting nonfiction book or a gripping novel.
For years I’ve been trying to figure out how to get my incentives to align with my abstract desires and start reading more books. My new theory is that I’m more likely to read books if I check them out from the library. I am a deadline driven person, and when you check books out of the library they come with a deadline. You have to give them back whether you read them or not. The other difference is that buying a book is a commitment. You spend money on it, and so it’s worth looking into carefully to make sure you’re buying something that’s really good. Books are sacred. On the other hand, if you check out a book from the library and it’s not your cup of tea, you put it down and drop it off on the way home from work the next day. No pressure.
So today I went to the library and got a library card and checked out Rosecrans Baldwin’s novel from last year, You Lost Me There. I knew his name from The Morning News and I have enjoyed his commentary on Layer Tennis matches so I picked up his book on a whim and now I have until April 25 to read it. We’ll see how it turns out — first I have to finish reading this issue of National Geographic from last September.