Wikipedia founder says apps model can save news industry

The increasing use of the mobile Internet and for-pay “apps” that run on smart phones and other gadgets might give news providers what they've been searching for: a way to charge for digital content, Wales told The Associated Press in an interview Friday. As founder of one of the world's most popular websites, the 44-year-old American is a key Internet entrepreneur.

“The apps model — the iPad app, the Kindle — does provide new and interesting opportunities for newspapers,” he said, speaking on the sidelines of the Ambrosetti Forum, an annual gathering of business and political leaders on the shores of Italy's Lake Como.

“If I just click on my iPad, and it's billed on my normal bill, that micropayment model makes it possible for people to have an impulse purchase,” he said.

Newspaper and magazine publishers have been charging on a subscription basis for content on Amazon.com Inc.'s Kindle e-readers. Many publishers are experimenting with a system that lets people download an app, then pay for each new issue.

Some media companies have discussed using a micropayment system instead, where readers pay a few cents every time they click on an article. The charge could be either debited from a prepaid account or folded into the wireless bill for a device such as Apple Inc.'s iPad.

So far, micropayments haven't taken off. Wales believes both models can work, but said he expects subscriptions will remain more popular.

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