A dated but good analogy

I know this reference is a little dated, but I still see this ringing true: (from Piracy is Progressive Taxation)

In looking at online content subscription services, analogies with television are instructive… Revenue from “basic cable” has been supplemented by various aggregated premium channels. HBO, one of those channels, is now television’s most profitable network. Meanwhile, over on the internet, people pay their ISP $19.95/month for the equivalent of “basic cable”, and an ideal opportunity for a premium channel, a music download service, has gone begging for lack of vision on the part of existing music publishers.

Another lesson from television is that people prefer subscriptions to pay-per-view, except for very special events. What’s more, they prefer subscriptions to larger collections of content, rather than single channels. So, people subscribe to “the movie package,” “the sports package” and so on. The recording industry’s “per song” trial balloons may work, but I predict that in the long term, an “all-you-can-eat” monthly subscription service (perhaps segmented by musical genre) will prevail in the marketplace.

And it could be a good business model for ebooks. Your thoughts?

Advertisements

Leave a comment

July 8, 2012 · 8:53 pm

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s