14 DAY TRIAL // The internet has clearly changed things and old revenue models simply don't work anymore for many businesses, especially in the content industries. This hasn't sunk in for most of them but, while the old guard are desperately trying to maintain the status quo, there are others who are trying to find a way for artists to make a living while adapting to the realities and opportunities the web has created. One example is the very recently launched Flattr, a micro-payments / donations service which takes its inspiration from places like Digg and Paypal.
The video that Flattr put up on Vimeo after the launch does a pretty good job at explaining how everything works, and the system is actually quite ingenious. Users sign up for Flattr and pay a monthly flat rate, hence the name. It's not clear what that amounts to or if the users are able choose how much they want to pay, but we'll update as soon as we hear from Flattr.
Then, whenever they find an artist, writer, musician etc., that they like, they'll be able to click the flattr button as a sign of their appreciation. At the end of the month, the money the users paid upfront gets divided up equally to all the places they clicked the button on. The aim is to make the process of donating a small amount as a token of gratitude seamless and hassle-free. Currently, similar systems have users jumping through all sorts of loops either through PayPal or even asking for their credit card which scares away most people.
Flattr is the brain child of none other than Pirate Bay (ex)spokesman Peter Sunde and was launched less than a day ago. It's currently in private beta and invitation only. Sunde says that a few thousand people have already signed up and the service definitely has potential. The real question is if it manages to get the sort of traction and widespread use that it needs for it to become useful. There's clearly a need for something like Flattr and Sunde is reaching out to sites like YouTube and Flickr to get some sort of deal going, but it's much too early to tell if it proves successful.