Micropayments — again. Zzzz…

It’s hard to keep a bad idea down. Now it’s James Fallows’s turn to fantasise still that micropayments are the solution to online journalism’s revenue deficit.

In principle, some form of ‘micropayments’–tiny royalties for each online item – will be part of the eventual solution for financing online news. The problem is that most existing systems are too big a nuisance. In a world where people willingly pay several dollars per day for cable or satellite TV programming, you’d think that a newspaper article would be worth at least a few cents. But in practice, anything that complicates or delays the act of reading a Web page or clicking a link probably sends an online reader someplace else. It’s not the five cents that stops you; it’s having to decide over and over again to spend the next five cents. It might be the same with TV if you had to authorize a payment each time you switched to The Daily Show.

A sustainable payment system for online news has to make the process as effortless – but still as controllable – as the EZ-pass system for highway tollbooths. Or, for a more modern reference, as the SkypeOut payment system on Skype. With EZ-pass, you decide ahead of time that you’re willing to pay for tolls, so you’re spared the hassle at the booth. With SkypeOut, you decide ahead of time to spend $25 or $50 on Skype’s pennies-per-minute calls to landline phones, and you don’t have to worry about the details for each call.

It’s pure fantasy, this, as Clay Shirky pointed out ages ago:

Because small payment systems are always discussed in conversations by and for publishers, readers are assigned no independent role. In every micropayments fantasy, there is a sentence or section asserting that what the publishers want will be just fine with us, and, critically, that we will be possessed of no desires of our own that would interfere with that fantasy.

Meanwhile, back in the real world, the media business is being turned upside down by our new freedoms and our new roles. We’re not just readers anymore, or listeners or viewers. We’re not customers and we’re certainly not consumers. We’re users. We don’t consume content, we use it, and mostly what we use it for is to support our conversations with one another, because we’re media outlets now too. When I am talking about some event that just happened, whether it’s an earthquake or a basketball game, whether the conversation is in email or Facebook or Twitter, I want to link to what I’m talking about, and I want my friends to be able to read it easily, and to share it with their friends.

This is superdistribution — content moving from friend to friend through the social network, far from the original source of the story. Superdistribution, despite its unweildy name, matters to users. It matters a lot. It matters so much, in fact, that we will routinely prefer a shareable amateur source to a professional source that requires us to keep the content a secret on pain of lawsuit. (Wikipedia’s historical advantage over Britannica in one sentence.)

Plain speaking about Steve Jobs

From Mark Anderson.

The first, and most important issue is Steve’s actual health condition. What was last described as a “hormonal imbalance” or something like it, now looks a good deal like liver cancer.

If Steve has / had liver cancer, it opens a new vista of medical questions which he should be discussing now, as CEO. So should the media, so, get with it, kids.

Second, on the legal side: I have never heard so much BS in my life, as has been written in the last week about why it was perhaps OK for Apple’s board not to share this information with shareholders and the public.

The test, according to the SEC, is simple: if information would affect an investor’s decision to purchase (or sell) shares, it is material and should be disclosed.

Since anyone who went through the non-Steve Apple years knows that there simply is no Apple without Steve, the fact of his liver transplant, and if so, of his new cancer, are life- and company-threatening. There is no fancy dancing about taking a leave that would remove the obligation to tell investors that the only person who could run the company at length was in jeopardy.

The Apple board has now broken the law, twice: first, over the options deal with Steve; and now, this.

While Steve is great at making products, this board, and this company, suck at obeying the law, and at modern governance. They have put their shareholders at unknown risk, and themselves personally.

Yep. Couldn’t have put it better myself.

LATER: Warren Buffett takes much the same line:

“Certainly Steve Jobs is important to Apple,” Buffett, chairman and chief executive officer of Omaha, Nebraska-based Berkshire Hathaway Inc. said in an interview today on CNBC. “Whether he is facing serious surgery or not is a material fact.”

[…]

“If I have any serious illness, or something coming up of an important nature, an operation or anything like that, I think the thing to do is just tell — the Berkshire shareholders about it. I work for them,” said Buffett, 78. “They’re going to find out about it anyway, so I don’t see a big privacy issue or anything of the sort.”

Obama wakes up to Chinese Net-filtering demands

From today’s NYTimes

The Obama administration lodged a formal protest on Wednesday with the Chinese government over its plan to force all computers sold in China to come with software that blocks access to certain Web sites.

Commerce Secretary Gary Locke and Ron Kirk, the trade representative, sent a letter to officials in two Chinese ministries asking them to rescind a rule about the software that is set to take effect on July 1.

Chinese officials have said that the filtering software, known as Green Dam-Youth Escort, is meant to block pornography and other “unhealthy information.”

In part, the American officials’ complaint framed this as a trade issue, objecting to the burden put on computer makers to install the software with little notice. But it also raised broader questions about whether the software would lead to more censorship of the Internet in China and restrict freedom of expression.

“China is putting companies in an untenable position by requiring them, with virtually no public notice, to pre-install software that appears to have broad-based censorship implications and network security issues,” Mr. Locke said in a news release. The government did not release the text of the letter…

Hmmm… It’s good news that the US government is beginning to take a real interest in this. But I wonder how it will play out.

FOOTNOTE: The research report on Green Dam by Scott Wolchok, Randy Yao, and J. Alex Halderman is here. The Abstract reads:

We have discovered remotely-exploitable vulnerabilities in Green Dam, the censorship software reportedly mandated by the Chinese government. Any web site a Green Dam user visits can take control of the PC.

According to press reports, China will soon require all PCs sold in the country to include Green Dam. This software monitors web sites visited and other activity on the computer and blocks adult content as well as politically sensitive material.

We examined the Green Dam software and found that it contains serious security vulnerabilities due to programming errors. Once Green Dam is installed, any web site the user visits can exploit these problems to take control of the computer. This could allow malicious sites to steal private data, send spam, or enlist the computer in a botnet. In addition, we found vulnerabilities in the way Green Dam processes blacklist updates that could allow the software makers or others to install malicious code during the update process.

We found these problems with less than 12 hours of testing, and we believe they may be only the tip of the iceberg. Green Dam makes frequent use of unsafe and outdated programming practices that likely introduce numerous other vulnerabilities. Correcting these problems will require extensive changes to the software and careful retesting. In the meantime, we recommend that users protect themselves by uninstalling Green Dam immediately.

In other words, this isn’t just about the Chinese government’s repressive Internet policy. It potentially affects every Internet user because Green Dam could make it possible to turn the Chinese Internet into a gigantic botnet.