Two seasoned entrepreneurs have launched a platform that offers an alternative to subscription-based paywall models for accessing content.
Northern Kentucky-based Content Credits is a micropayment platform that allows users to purchase individual articles or pieces of content at a fraction of the cost of a traditional subscription.
The service aims to provide readers with the freedom to access individual articles without the burden of a costly subscription, ensuring that information is accessible to all, regardless of income level.
“We live in the information age. You’re telling people who can’t afford this content, ‘Too bad.’ Why not charge them a dime or a quarter?” Adam Koehler, co-founder and CEO of Content Credits, said.
Publishers use paywalls to restrict access to their content, typically requiring users to pay a subscription fee to access articles. This is primarily done to generate revenue and ensure the sustainability of their publications.
Users may not benefit from paywalls because the subscription costs can be a financial burden, limiting access to important or relevant information, Koehler said.
The drawbacks of subscription models extend beyond consumers to content publishers as well.
Traditional paywalls often lead to high bounce rates. These high bounce rates can harm a website's search engine optimization, as search engines may interpret them as a sign of low user engagement and poor content quality, leading to lower rankings in search results.
Additionally, subscription fatigue can deter potential readers from accessing content, even if they are interested in the subject matter. Koehler said that paywalls can train users to not click on content published by companies that use it,
“The trajectory is downward," Koehler said. "It’s not getting more readers, it’s actually gatekeeping more content to get more subscribers, and the subscribers aren’t there…How many things do we have to be subscribed to?”
Dan O'Keeffe, co-founder of Content Credits and its chief marketing officer, said it doesn’t have to be a replacement to a subscription model.
“The more content you’re able to access more affordably…the more you’ll come to appreciate the content from that source, and you want more of it,” O’Keeffe said.
The platform integrates with existing paywalls and can act as a browser extension. Content Credits establishes the price of its token, while publishers have the flexibility to determine the cost of individual articles in credits. Users can easily purchase these tokens to access the content they desire.
For example, if a publisher prices an article at $2 for non-subscribers and Content Credits are valued at $0.25 each, a user could access the article by spending eight credits.
Leveraging blockchain technology and established smart contracts, the platform ensures secure and transparent management of transactions, guaranteeing accurate and timely payments to writers, publishers and the platform itself.
“It’s a trusted ledger. We can’t tamper with it,” Koehler explained. “Once the smart contract is written…all that information is passed down through that token.”
Content Credits would offer consumers affordable access to a wide range of content without a subscription, and for publishers, the platform would increase revenue streams, expand audience reach and improve search engine optimization.
The data stored in the tokens could also allow for publishers to track performance data, helping them create more engaging content based on reader preferences.
Currently, Content Credits is entirely self-funded by Koehler and the rest of the team. The platform is fully developed and has garnered interest from several accelerators and venture capital funds, including Blue North and Keyhorse Capital.
As the platform is fully built, Koehler and O’Keeffe are looking for publications and users to pilot it.
Koehler, a Dotloop alum and co-founder, has been involved in the Greater Cincinnati business community for almost 10 years. He currently owns CovWorx, a collaborative coworking space located in Covington, and is also an owner of virtual web design agency Reversed Out Creative.
O'Keeffe has more than 18 years of public relations experience. He served as the president of O'Keeffe Communications from September 2001 to December 2010 and currently leads O'Keeffe PR. He also is the co-founder and partner of crisis communication company Resurgent Collaborative.
