You Tube is going to paid subscriptions. What does this say about the changing landscape of the entertainment business?
The old Pay TV business models need to really adjust their business models.
You Tube is a distribution system. It is done over the internet. For $2 a month you can subscribe to a channel. Imagine if The Walking Dead is on that channel or Game of Thrones or your favorite sport televised live. I would take up that offer, and stop paying my $600 Yearly Pay TV bill. That is what people should be thinking about. That is where it should be heading.
In Australia, as at December 2012, there are 2.3 million subscribers for Pay TV. If all of those subscribers have the basic package and pay $600 a year, it comes close to $1.4 billion in revenue coming in for the year. However, I believe that more money is to be made if people are able to choose the channels they want. I know from September to February i will have the channel that plays The Walking Dead, and from March to June, i will have the channel that plays Game Of Thrones. I love my sport, so i will have the channels that are relevant to those sports on all year round.
It’s a consumer world. Give them all the choices.
Let them pick the channels, let them pick when they want to watch the next Game Of Thrones episode. All the creators have to do is to make it and release it, let them watch it non stop for the week. The era of the time slot is over. That is an advertising relic.
Make it east to bill them and let them cancel when they want. The old contract term doesn’t fit the modern day.
If fans decide that it is too expensive, they will find another way to get the content they desire. Why would makers of content, want fans to go down that path? Their job is to keep those fans in their circle and connect with them in other ways.
Look at Spotify. They are bringing music to the masses. Their search algorithms or music discovery algorithms are shit, but they are working on it.
Innovate or disappear.