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'Internet economy' is six percent of US GDP: study
by Staff Writers
Washington (AFP) Dec 10, 2015


News 'micropayments' site to launch in US
New York (AFP) Dec 9, 2015 - Online news startup Blendle, which allows users to make small payments to read individual articles, announced plans Wednesday to launch next year in the United States.

Blendle, a Dutch-based service which has been operating in the Netherlands and Germany, hopes the "micropayments" model can help struggling news organizations as an alternative to "paywalls" or digital subscriptions, said co-founder Alexander Kloepping.

While paywalls have become more common in the United States, Kloepping said, "some of the best content is only available behind those paywalls, doesn't go on the Web until days after publication in print newspapers and magazines and is still viewed through an array of intrusive ads."

He said Blendle helps users "find the most interesting stories every day" by "looking specifically at each reader's tastes, along with the tastes of their friends, and by employing editors that hand-pick the best stories from premium sources."

The New York Times and German digital publisher Axel Springer agreed last year to invest in the platform, which Kloepping founded along with another young Dutch journalist, Marten Blankesteijn.

Blendle signed up major publishers in Germany and the Netherlands, as well as big names like The Washington Post, The Wall Street Journal and The Economist.

It has over 500,000 users in the two European countries.

Kloepping told AFP that Blendle expects to charge 20 to 30 cents for US newspaper articles and 25 to 40 cents for magazine stories, similar to the rates in Europe. Publishers keep 70 percent of revenue, with Blendle getting the rest.

"People are ready to pay for that but it needs to be easy," he said. "It needs to be done well. It needs good technology. And that's what we're trying to do."

Blendle will initially seek to bring on major national publications and then smaller, regional and local ones.

Blendle frees users of the need to sign up to costly digital subscriptions for each publication. Readers can buy articles with one click, view them without ads and obtain an instant refund if they are not satisfied.

"In an age of ad blockers and paywalls, many publishers are struggling to find out how to monetize their content. Blendle started as a big experiment in Europe, but it's working," said Kloepping.

By simplifying the readers' experience, he said, "We've proven that we can get young people to pay for high-quality journalism."

The Internet's economic impact has doubled since 2007 and now fuels at least six percent of the overall US economy, a study showed Thursday.

The study for the Internet Association -- which includes major companies such as Facebook and Amazon -- found the online sector accounted for $966 billion in economic activity in 2014, and some three million jobs.

"The Internet often has an 'everywhere but nowhere' feel, however, in reality, jobs in the Internet sector have doubled, contributions to real GDP (gross domestic product) have increased by more than two-fold, and employee wages far surpass the national average," said Michael Beckerman, president and chief executive of the trade group.

The study conducted by the consulting firm Economists Incorporated found the Internet produced more than many other economic sectors including construction, computer and electronic products, broadcasting and telecommunications, and accommodation and food services.

In terms of wages, Internet jobs paid an average $79,184 a year, compared to the national average of $61,547, the study found.

According to the report, about 299 million people, or 92 percent of the US population, are using the Internet.

The association includes more than two dozen Internet firms including Airbnb, Amazon, Facebook, Twitter, Uber, Yahoo and Yelp.

Twitter expands ads to reach users who don't log in
New York (AFP) Dec 10, 2015 - Twitter said Thursday it was expanding its advertising to allow marketers to reach people who use the messaging platform without logging in.

The move potentially opens up new revenue streams to Twitter, which has struggled to expand its user base and has never made a profit.

Twitter has 320 million active users, but claims its "total audience" is much larger, with many more people viewing tweets without joining or logging in.

Twitter product manager Deepak Rao said the new feature would be "a test for marketers to reach the over 500 million people who visit Twitter each month to keep in touch with what's happening without logging in."

Rao said this "includes people who click on links to tweets in Google search."

"By letting marketers scale their campaigns and tap into the total Twitter audience, they will be able to speak to more people in new places using the same targeting, ad creative, and measurement tools. Marketers can now maximize the opportunities they have to connect with that audience," he said.

The new feature is being rolled out with some advertisers in the US, Britain, Japan and Australia, "with more geographies in the future," Rao added.

Lou Kerner, a partner at the venture firm FlightVC who follows social media, called Twitter's action "a smart move" but said it was unclear if it would deliver meaningful revenue.

"This can have a positive impact on revenue at the margin, but ultimately it doesn't get at their core problem, which is user engagement, how often people are going to Twitter to see the content that they want to see," Kerner told AFP.

"They need to figure out how to get users that come and stay longer. Which is a very difficult problem. It's going take a fundamental change of Twitter."

Much of Twitter's revenues come from ads known as "promoted tweets."

The company, which recently brought co-founder Jack Dorsey back as chief executive, saw its shares jump 7.4 percent on the news to $26.11 in afternoon trade.

Yahoo CEO Mayer gives birth to twins
San Francisco (AFP) Dec 10, 2015 - Yahoo chief executive Marissa Mayer said Thursday she delivered twin baby girls, adding to her family as she seeks to revitalize the struggling Internet firm.

Mayer posted the news on Twitter and on the Yahoo-owned blogging platform Tumblr with husband Zach Bogue.

"Zack and I are excited to announce that our identical twin girls have arrived! They were born early this morning," she wrote on the blog.

"Our whole family is doing great! Thanks to everyone for all of the support and well wishes throughout my pregnancy."

The news comes just a day after Mayer unveiled a shift of strategy for Yahoo -- keeping its stake in China's Alibaba but spinning off its core Internet business.

The revised plan is aimed at easing uncertainty about a big tax bill from selling Alibaba shares, but it also creates new uncertainties for the tech firm and raises questions about whether it could be sold.

The 40-year-old Mayer, who once worked at a grocery store, is listed as the 22nd most powerful woman by Forbes magazine.

She is also among the best-paid executives, with a package worth $42 million last year including stock options.

Since arriving at Yahoo in 2012, she boosted maternity leave at Yahoo to 16 weeks but only took two for the birth of her first child in 2012 -- drawing plaudits and critics.

When she announced she was pregnant with twins, Mayer indicated she would be taking "limited time away and working throughout."


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