Subscriptification

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via Nick Youngson CC BY-SA 3.0 Pix4free.org

Let’s start with what happened to TV.

For decades, all TV signals were “over the air,” and free to be watched by anyone with a TV and an antenna. Then these things happened:

  1.  Community Antenna TeleVision, aka CATV, gave us most or all of our free over-the-air channels, plus many more—for a monthly subscription fee. They delivered this service, literally, through a cable connection—one that looked like the old one that went to an outside antenna, but instead went back to the cable company’s local headquarters.
  2. Then premium TV (aka “pay,” “prestige” and “subscription” TV), along with one’s cable channel selection. This started with HBO and Showtime. It cost additional subscription fees but was inside your cable channel selection and your monthly cable bill.
  3. Then came streaming services, (aka Video on Demand, or VoD) showed up over the Internet, and then through media players you could hook up to your tv through an input (usually HDMI) aside from the one from your cable box, and your cable service—even if your Internet service was provided by the cable company. This is why the cable industry called all of these services “over the top,” or OTT. The main brands here were Amazon Fire, Apple TV, Google Chromecast, and Roku. Being delivered over the Internet rather than lumped in with all those cable channels, higher resolutions were possible. At best most cable services are “HD,” which was fine a decade ago, but is now quite retro. Want to watch TV in 4K, HDR, and all that? Subscribe through your smart OTT media intermediary.
  4. And now media players are baked into TVs. Go to Best Buy, Costco, Sam’s Club, Amazon, or Walmart, and you’ll see promos for “smart” Google, Fire (Amazon), Roku, webOS, and Tizen TVs—rather than just Sony, LG, Samsung, and other brands. Relatively cheap brands, such as Vizio, TCL, and Hisense, are essentially branded media players with secondary brand names on the bezel.

Economically speaking, all that built-in smartness is about two things. One is facilitating subscriptions, and the other is spying on you for the advertising business. But let’s table the latter and focus just on subscriptions, because that’s the way the service world is going.

More and more formerly free stuff on the Net is available only behind paywalls. Newspapers and magazines have been playing this game for some time. But, now that Substack is the new blogging, many writers there are paywalling their stuff as well. Remember SlideShare? Now it’s “Read free for 60 days.”

Podcasting is drifting in that direction too. SiriusXM and Spotify together paid over a half $billion to put a large mess of popular podcasts into subscription-based complete (SiriusXM) or partial (Spotify) paywall systems, pushing podcasting toward the place where premium TV has already sat for years—even though lots of popular podcasts are still paid for by advertising.

I could add a lot of data here, but I’m about to leave on a road trip. So I’ll leave it up to you. Look at what you’re spending now on subscriptions, and how that collection of expenses is going up. Also, take a look at how much of what was free on the Net and the Web is moving to a paid subscription model. The trend is not small, and I don’t see it stopping soon.

 

  1. Paul Leigh’s avatar

    There are some positives though Doc.

    I no longer buy CD’s or DVDs, I get a lot more of my time back without the advertising which took up as much as a third of my time and I can pick and choose what I want to watch or listen to, at my convenience without the broadcaster determining this for me. Heck, I can even download to a mobile device and watch it on the move, without being tied to a home address/TV.

    In the UK, I’m able to ditch the national TV Licence, which more than covers a yearly Netflix subscription. I have Amazon Prime for the delivery benefits and then I additionally get Disney for my Son (and me occasionally), so my spend is not huge. Spotify adds £10 p/m (though I’m tempted to drop this as Radio Paradise is so good)

    Given the convenience of the services, sans advertising, I fall on the side of I’d prefer this model to the one before.

  2. Steve Stroh’s avatar

    From the content creator end of things, Subscriptification is a boon! Us “Pico” (smaller, even, than Micro) content producers finally have a viable path to at least SOME revenue because there’s no gatekeeper to monetization. I’ve tried various monetization schemes and they failed because they required too much of me (detracted from energy and time creating content) or the content had to be “blessed” before being brought into their ecosystem.

    Substack and YouTube are great for us pico content creators – create, post, promote, and if people are interested, they subscribe and pay (Substack) or watch and endure ads (YouTube). And the revenue flows to the creator… minus a cut by the platform, of course, but that’s a small price to pay to not have to deal with the fiddly bits.

    Creating good content like a great podcast is significant work, and the ad model (other than YouTube, where ads are automagic) is a helluva lotta work to find good advertisers / sponsors. So I don’t blame any podcaster who “takes it private” into one of the podcast networks like Spotify to start receiving real revenue.

    As for televisions having built-in streaming players… well, only if you choose to connect it to the Internet. My two large televisions (one on the wall in the living space, one I use as a huge monitor on my desktop), have never been connected to the Internet. The former has an Apple TV 4K connected to it (the least slimy choice of streaming boxes) and the latter has a Mac Mini connected to it. As long as there are HDMI ports on those televisions, you still have a choice.

    Well, kind of… I heard a story that one major brand requires you to connect to Internet for the television to function to its full capabilities (ran at HD rather than 4k or something like that).

  3. Iain Henderson’s avatar

    Meantime, check out this crazy story on where subscriptions head over time…. https://www.bbc.co.uk/news/technology-62142208

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