Thursday, October 30, 2008

New Media's Dirty Little Word...Revenue

Internet users have become jaded; we like getting our content free of charge. Perhaps it comes from being a free TV generation, expecting ads in exchange for shows. Cable television developed the notion of subscription and found that they could push this "membership fee" while continuing to take in advertising revenue too. And so it is not unusual to hear that websites are also looking at subscription to enhance their revenue model. But when usage has been free, what to do. The answer, create a premium account that incorporates added features "-- asking customers to pay for things. Namely: Pro accounts, plus accounts, premium features, enterprise editions, and white label versions." Examples being cited in this article are sites like, Meetup, vimeo, and others.

Will this please the Venture Capitalists who have been financing these business - absolutely. Content is is god.

First Disney, Now Tivo Partners With Netflix

Just a week after announcing its deal with Disney, Tivo has announced another major partnership. Joining forces with Netflix to provide the digital distribution arm for movies. And Comcast has announced that it is expanding its rollout of its DVR with Tivo into the Chicago market. Tivo seems to be successfully turning itself into the preferred box for DVR and streaming content, enabling the TV set to access an infinite assortment of content. It seems the only thing missing for Tivo is a partnership with Hulu, followed by putting a Tivo into your PS3!

Back to Tivo and Netflix, it seems like a win-win relationship. "Under the partnership announced Thursday, the latest generation of TiVo's digital video recorders will be able to beam selections from 12,000 movies and TV shows offered through Netflix's streaming service, which must be piped over high-speed Internet connections. TiVo's DVRs will start catering to Netflix subscribers in early December."

At the same time, a number of cable companies have announced that they are raising their monthly subscription rates. In a recessionary economy, is this the right move. While Netflix competes with premium nets like HBO and Showtime, consumers may find that they need to cut back on their spending. One move might be to reduce your cable bill down to basic channels only and buy a Netflix subscription. The cost savings may just be worth the move.