Streaming & Subscription is the Way to Go

 

Bradley Chambers:

We’ve actually been doing it with music for years. How’s that tape collection working out for you? What about that CD collection? Can you play that in your new Mac that doesn’t have a CD player? Even digital media has a shelf life. We’ve moved from 128k songs from iTunes with DRM to 256 AAC iTunes songs. Do you think this is the end for digital music quality? As time goes along, formats will change and devices will change. You might own a lower quality version, but what about the new HD format that goes along with those fancy new bluetooth headphones that someone is probably working on? You’ll want to upgrade to new copies of your favorite albums.

Content as a Service (CaaS) is the future. I think Netflix really primed the pump for people being willing to pay for a monthly content access fee. At $9/mo, you get a decent back catalog of movies, a really nice TV show inventory, and a really nice selection of kids shows. Why do I care about owning a movie that I’ll watch one time? Why do I need to own season 3 of Breaking Bad? I’ll probably watch it 1 time. CaaS is also key for discoverability. In my testing of the Beats Music service, I’ve discovered some new artists based on some of the recommendations. I probably would not drop $10 on an album that Beats recommends to me, but I’ll certainly add it to my library and listen to it later. I know that if I hate it, I am only out a little time. With Netflix, if a movie stinks, I can turn it off. If I rent it from iTunes, I’ll be out the $5. A-la-cart pricing for media basically kills discoverability. People will go with what is safe when they are having to make a conscious decision about what to buy.

Bradley makes some interesting points. I have always embraced digital content – i.e. stop buying CD’s, DVD’s, Blu-ray’s etc but now that we have switched to digital, maybe it’s smart to stop buying digital content for when digital is no longer compatible in it’s current form soon. For music, stop buying music off iTunes – get it from Spotify or the soon-to-be-bought-by-Apple Beats Music. Get your movies & TV shows from services like Netflix or Amazon Instant. You pay a regular monthly fee but if you think about it, it’s cheaper than buying/renting 2/3 movies/albums per month and you are future proofing yourself continuously.