Wednesday, April 27, 2011

Subscription Business Models For Mindfood

Image representing Netflix as depicted in Crun...Image via CrunchBaseMindfood described as books, movies and music. Better than subscription is ad supported, but subscription is also pretty good. You pay a monthly fee and you get to access all books, movies and music ever created, being created. The movie people don't get this. They are like, oh no, we have to punish you by a few weeks if you are not going to show up at the theater.

The music people get it a little. They are like, if you are going to get the music for free anyways, we are going to make you pay for live concerts. And the movie people are like, we can't get Brad Pitt show up at every movie theater. That's the whole point, that he can't be everywhere. Al Pacino does some Broadway stuff. But that is one location.

Adaptive Text: The Book Deserves To Come Alive
Al Pacino attending the Venice Film Festival i...Image via Wikipedia Netflix: A Subscription Model The Music Business Should Aspire To: In the first quarter of 2011, the online video rental service added 3.6 million subscribers, to finish with 23.6 million. ..... the company's subscriber numbers increased 69% in a single year. It's the kind of explosive growth normally seen in a company's formative years, even though Netflix is a mature company. Check out the year-over-year subscriber growth starting with Q1 2009 and ending with Q1 2011: 25%, 26%, 28%, 31%, 35%, 42%, 52%, 63% and 69%. ....... 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. ...... In November 2010, the company offered for the first time a streaming-only price point, in which all subscribers to DVD plans get free, unlimited streaming. ..... Revenues rose to $718 million, a 46% increase from the first quarter of 2010. Gross profit rose 50% to $280 million and net income was up 87% to $60 million.
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