 |
   |
Visit min's sister site:  |
|
|
|
|
THE MONEY SHOT
Forrester: Users Will Pay…to ‘Access’ Content Under the traditional model of content consumption, we paid for “access” to content via tangible goods like books, vinyl or print products. “As a result, when we paid for anything, it appeared that we were paying for content, not access,” he said in his presentation at the paidContent 2010 conference. In 1976, the average consumer was paying about $29.58 a month for content, but much of that was going to tickets, magazine subscriptions and record stores, all passed on in some way to the content makers. In 2010, we spend $228.54 a month per household for access to content, but more than $155 of that is going to broadband access, cable TV fees, game consoles and DVD rental subscriptions. For subscriptions, pay-per-view and downloadable music, we are typically paying $96.84 per person on paid content, but the lion’s share of that is going to access fees. Xbox 360 Live, Netflix and Kindle are the new access gateways for digital content. Those who control the access points will reap the greatest revenues. And, as McQuivey warned, overall revenues to content will necessarily go down as more money goes to the gatekeepers and as advertising subsidies get fragmented across many more publishers. “Competition among content producers is going to be fierce,” he said. View more presentations from Christian Santiago.
COMMENTS
1.
Interesting distinction. However Walmart is not noticeably subsidizing CDs: low prices on everything is their stock in trade (they negotiate hard with suppliers, and I mean hard). And Amazon is not selling Kindles to subsidize books; it's actually the other way around. Notice that there is a free Kindle app for the iPhone. Books are what Amazon is in business to sell, and it doesn't sell them cheap.
Posted by Gerard Rejskind on Tuesday, March 2, 2010 @ 03:34 PM
|
App Central min's App Central (for min subscribers only): Stay on top of mobile app developments with exclusive app reviews, analysis and data. 
Please enter the following information to have a link to The Skinny emailed to your iPhone:
White Papers
min Contests
EventsBest of the Web, April 3, 2012 min's Sales Executive of the Year Awards min Press
 Events Calendar
min's Best of the Web Awards |
.jpg)
Internet Sales Guidebook| Copyright © 2012 Access Intelligence, LLC. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Access Intelligence, LLC is prohibited. For more details please see Terms and Conditions. |
