Re: He said reduce "transaction cost" to pennies.
> There are no transaction costs when a photographer sells a picture to a newspaper.
Of course there are transaction costs.
e.g. The cost of paying someone at the newspaper to find a relevant available photo, talk to you, look at your photos, negotiate the price with you, send you the licensing contract, check that you signed it, check that you are credibly the owner of the copyright and so have the right to sign the contract, taking the contract to someone internal who has signing authority for the newspaper, sending you a copy of the signed contract, entering the photo in a system that tracks its future use against the contract that authorises it, setting up the payment to be made to you, etc.
The more this is standardised and automated, the lower the transaction costs.
That does not have to mean that the price paid is standardised. e.g. ebay provides an electronic auction platform that allows market forces to determine the price paid for a disparate range of items, while lowering the transaction cost. In the case of ebay, it particularly lowers the cost of the buyer and seller finding each other, as well as providing standard ways for them to interact, and a standard legal agreement behind the transaction.
Imagine an ebay designed specifically for licensing photos rapidly, with standard watermarking requirements, etc.