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Currently there are no simple means to monetise long tail editorial content. Inexpensive licensing supported by machine readable licensing, electronic distribution and flexible micropayment may provide opportunities to exploit a potentially vast market. Le piattaforme di pagamento rappresentano un elemento fondamentale per la commercializzazione di contenuti digitali. Purtroppo ad esso viene dedicata poca attenzione ignorando le conseguenze per l'intero ecosistema. E' possibile immaginare un sistema per micro transazioni che sia aperto ed interoperabile? Quale impatto avrebbe sui prodotti e sul mercato?
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Micro payments for an ebook marketplace
Leonardo Chiariglione – CEDEO.net Ebook Lab Italia, Rimini, 2011/03/03
Why an ebook is different from a book?
� An ebook is made of bits and not atoms
� Making an ebook is � Easy because you can shrink – if you want – the
elements of a value chain to one � Difficult if you want to harvest the opportunities
offered by the digital form
� Pricing an ebook is � Easy because it is a new product � Difficult because there are no rules
2011/03/03 2 Micro payments for an ebook marketplace
It is not the first time a media type goes digital
� Audio � Vinyl – Cassette – CD – MP3
� Radio � AM – FM – DAB et al. – Internet Radio
� Video � Cassette – DVD – BluRay – DivX – Online services
� TV � Many analogue formats – Various CAS – Online
services
3 Micro payments for an ebook marketplace 2011/03/03
What about ebooks? � Books used to have a single analogue format ;-)
� Ebooks come in many distribution formats on top of widely adopted clear text formats
� “Ownership” of a distribution format – i.e. the consumption device – is deemed to be important
� Is this the best way to cater to the development of an infant industry?
� If the history of media on the internet is any guide…
4 Micro payments for an ebook marketplace 2011/03/03
The Italian connection… � The no-profit group “Digital Media in
Italia” (dmin.it) proposes to maximise the profitable flow of digital media � Per give Italy to acquire a primary role in the exploitation
of the globale “digital media” phenomenon � Acting on the offer/access to
� Content � Broadband networks � Pay/cash services
� Harmonising the requirements of � Authors: freedom to offer their works � Intermediaries: freedom to choose a role � Consumers: freedom to access content of their choice
5 Micro payments for an ebook marketplace 2011/03/03
Driversof dmin.it proposal � Standards are great enablers of business
opportunities � If the role of value chain players is duly remunerated
� Italy is too small a country to allow a competition of technologies � Are we really interested in a competition of big
external players on our skin?
� Dmin.it � Defines a set of basic mandatory technologies � Leaving operators the freedom to use other
technologies
6 Micro payments for an ebook marketplace 2011/03/03
Key technology #1 – format � Dmin.it chooses the MPEG-21 format, an ISO/IEC
standard for interoperable management and protection of digital assets
� Key features of the MP21 format � Content packaging format � Content identification � Content management and protection
� Rights expression language � Contract expression language
� And many more…
7 Micro payments for an ebook marketplace 2011/03/03
The word from WIPO/1 � In order to effect a change in attitude, I believe that
we need to re-formulate the question that most people see or hear about copyright and the Internet. People do not respond to being called pirates. Indeed, some, as we have seen, even make a pride of it.
� The history of the confrontation of our classical copyright world with the digital environment has been more a sorry tale of Luddite resistance than an example of intelligent engagement.
2010/12/12 8 Micro payments for an ebook marketplace
The word from WIPO/2 � Future generations are clearly going to regard many
of the works, rights and business agents that we talk about as cute artefacts of cultural history, much as the vinyl record has become in a very short space of time.
Francis Gurry, Director General of WIPO - World Intellectual Property Organization
2010/12/12 9 Micro payments for an ebook marketplace
Key technology #2 – access
� I won’t talk about it this time L
10 Micro payments for an ebook marketplace 2011/03/03
Key technology #3 – pay/cash
� To do business with digital media we need � A low entry level and distributed technology
� To enable anybody to perform payment and cashing operations
� Especially when micro amounts are involved
� We need to implement the following steps 1. Define a set of protocols 2. Standardise the protocols 3. Implement systems based on standard protocols
4. Deploy systems based on standard protocols
11 Micro payments for an ebook marketplace 2011/03/03
12
Step 1: define a set of protocols
Value Chain User 1 (e.g. Seller)
Value Chain User 2 (e.g. Buyer)
Virtual Account Service Provider 1
Virtual Account Service Provider 2
Bank account
Credit card
Prepaid card
Payment with units
Negotiation of content with payment data
Negotiation of ntwk resources with payment data
Acct11
Acct12
Acct1n
Acct21
Acct22
Acct2m Shared Services
Bank account
Utility bill
Electronic purse
Micro payments for an ebook marketplace 2011/03/03
Seller Buyer
Create Licence SP
Seller’s Payment and Cashing SP
Buyer’s Payment and Cashing SP
Repute User SP
Step 2: standardise protocols/1
13 13
13 Micro payments for an ebook marketplace 2011/03/03
Owner (e.g. Seller)
Participant (e.g. Buyer)
Create Licence SP
Payment and Cashing Interface
Seller’s Payment & Cashing SP
Buyer’s Payment & Cashing SP
Nego=a=on Interface
Negotiate Licence SP
Step 2: standardise protocols/2
Web, IP and Mobile TV (http://wim.tv/)
Step 3: implement systems based on standard protocols
Micro payments for an ebook marketplace 2011/03/03
The wim.tv ecosystem
16
Content
Content providers
Metadata
Expected $
Advertisers
Agents
engine & repository
Web TV 1
End users
Web TV 2
Syndicators
ecosystem
Micro payments for an ebook marketplace 2011/03/03
Step 4: Deploy systems based on standard
protocols � The Payment Services Directive (PSD, 2007/64/EC)
� Regulates payment services, providers and users in Europe
� Provides for the necessary legal framework within which all payment service providers operate
� Aims at increasing pan-European competition and participation in the payments industry
� Electronic Money Institutions (EMI) and Payment Institutions (PI) can provide payment services
� A PI can take the role of VASP
17 Micro payments for an ebook marketplace 2011/03/03
An ebook marketplace Books or chapters
Final product
End users
Basic Elements
Micro payments for an ebook marketplace 2011/03/03
To know more
http://www.dmin.it /
http://mpeg.chiariglione.org
http://wim.tv/ 19 Micro payments for an ebook marketplace 2011/03/03
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