The Video Player For Online Payments

About This Project:

The Flash Payer comes in the wake of some of the largest media companies pulling out of streaming video, namely Stage6 closing and follows the major implosion of Veoh Burning through 70 Million USD and filling for bankruptcy.

The video terrain has been a very difficult one to make money from so far, given the CPM from advertising in this sector is so low and bandwidth costs so high.

This project was inspired by my own struggles in this sector with Doc-Film-Net (a popular documentary porthole) which has been put on death watch numerous times as one CDN after another pulled the rug from underneath it. Ultimately in order to survive it had to pay its own way and hence I was forced to explore every possible payment method to pay Highwinds our wonderful new CDN.

In these trials I experimented for a long time with pay per view which was extremely disappointing since I discovered when content is placed behind a pay wall, viewers simply do not miss what they never had. This experience led me to experiment with a Megavideo style payment system, which allows limited free daily viewing time (60 minutes) then requires payment for unrestricted access.

I then developed a similar concept for Doc-Film-Net and sales increased over pay-per-view by about 90%. The reason simply being that people will only usually pay for something once they are hooked on it. Needless to say Doc-Film-Net is now no longer on life support!

This would have been the end of the story if it was not for the fallout on HackerNews witnessed by Andrew Warner of Mixergy when he announced he would be placing his library of interviews with successful entrepreneurs behind a pay wall.

I contacted Andrew and explained my own experience with video pay walls and what I had built to overcome this hurdle. His reply was obvious to him but not to me, "Where is the plugin for this" he said. This was when I had the aha moment which led to me to develop the Karsa Flash Payer widget and application to help other content providers in similar positions solve their monitization problems.