For A Streaming Subscrption Model That Works, Look No Further Than NetFlix

If It Works for NetFlix...

I wonder how many among my vast legion of readers who scoff at the idea of streaming music subscription services are Netflix subscribers?

If they are, then they’ll want to read this well-reasoned assessment from Billboard analyst Glenn Peoples, who makes an excellent case from numerous angles re: why the Netflix model would work if anybody had the brains or means to apply it to music:

With Netflix consumers have proven they will rent content – even re-run content – and stream it from the cloud. They will pay for digital content they could get for free through illegal means. They will pay if the service allows streaming through multiple devices – including mobile….

If a music service can reach the scale of Netflix, it too can pay rights holders handsomely while continuously improving the product and giving subscribers a high level of service. In the first quarter, Netflix shelled out $192 million for the acquisition of streaming rights on top of the $377 million it paid to rights holders related to its subscription revenue.

I have had several occasions over the past couple of years to engage Glenn Peoples in some discussion about music delivery systems, subscription services, etc.  The problem usually is that Glenn’s side of the discussion is informed with facts, data, and astute analysis – while my side is typically “by the seat of my pants” and fueled by a tankful of attitude.

So it’s nice to see that we are in complete agreement on this particular analysis.  The music industry has much to learn from Netflix, and music “consumers” (listeners, users, fans?) have much to gain if the industry can ever have muster the fortitude to follow Netflix’ lead.

Netflix: A Subscription Model the Music Business Should Aspire To | Billboard.biz.



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Paul S