Category Archives: paywall

Google Music

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Once a pon a time a number of years ago I went through a period of several years where I spent a fair amount of money on compact discs. Those days are long gone and have been for some time.

It’s probably just my age showing more than anything, but in recent years I lost interest in finding new music. I stopped listening to the radio the better part of ten years ago. When I did listen to music, it was to the old stuff.

To my surprise, I’ve become more interested in listening again. There’s a genre of music I paid scant attention to in the past called “electronic” that has caught my ear in the past couple of months. Mind you, not enough to start shelling out money for CD’s or even MP3’s, but these days that isn’t necessary. The “electronic” category of music is not for everyone. It is created with synthesizers and some of the sounds are very aggressive; some people would consider them noise. To my surprise, I’m really enjoying listening to this stuff — not enough to buy the music outright, but enough to pay to have access.

Google Music is currently offering a 30 day free trial. The price after the free trial is $7.99 per month if you lock it in by subscribing before the June 30 expiration date. The regular subscription price is $10 dollars per month.

I subscribed to the free offer, and so far I like it. I searched for the names of some of the electronic artists such as Hardwell and Armin van Buuren. I was easily able to figure out how to start the “radio” feature, which is initiated from a particular song. Once tracks started playing, I gave many of them a “thumbs up” if I really liked them and a few tracks a “thumbs down” if I didn’t like them. Google Music seems to do a great job of figuring out what I like over time.

Google Music claims to offer access to millions of tracks. A few experimental searches seems to indicate that they do offer a broad selection of both new and back catalog tracks.

You can download any track to your device by adding it to your library. I didn’t read the terms of service, but I’m sure once you cancel any downloaded music will go away once you stop paying the rent.

Renting access to music is actually a great idea if you want to casually listen, but don’t want to spend a fortune doing it.

OTT And Paid Content

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OTT, short for “over-the-top-television” is an up-and-coming acronym that we are all likely going to become familiar with in the near future, provided someone doesn’t come up with a different marketing name. The concept is simple – it’s TV that comes “over the top” of traditional channels on a cable system via the Internet delivered in digital packets. It can either be live streaming video, on-demand streaming video, or in the form of a pre-recorded on-demand podcast.

There are many aspects of over-the-top TV that have yet to be shaken out. Specifically, here in the early stages there are some still-murky areas when it comes to details of how advertising is going to work.

Things that we know about how OTT works successfully so far:

People are willing to pay for bundled on-demand professionally created OTT content in the form of Netflix on-demand streaming of movies, TV shows, and other content. The bundled Netflix price for all-you-can-eat on-demand streaming OTT offers the consumer a real value. In most cases, a great deal of marketing money and effort has been spent promoting the majority of individual movies and other content that are available on Netflix, so the consumer has a fairly high degree of familiarity with much of the on-demand streaming content they offer. These are essentially repurposed movies that are already on the shelf.

People are willing to watch on-demand streaming OTT of professionally-created content with embedded ads as demonstrated by the ongoing success of Hulu.Com. The consumer is likely already familiar with a portion of the content, but Hulu also allows the consumer to discover and explore previously unknown TV show content in an on-demand stream with embedded ads. These are essentially repurposed TV shows, some movies, and other content.

Live streaming OTT of live content is still catching on. The most successful live OTT content as typified by what Leo Laporte and company are generating still offers an on-demand podcast version that can be downloaded later. Currently, on-demand, after-the-fact podcast versions of live OTT generated content end up with many more downloads than people watching via live streams. Both live streaming OTT and the on-demand podcast versions can contain ads. For the ads to be effective in this format, they need to be relevant to the audience’s needs and desires. The old “shotgun” advertising approach does not work in this format. This specific type of content is closely associated with word-of-mouth promotion.

There are a few questions that remain to be answered. Will consumers pay for on-demand streaming of TV drama-type content they are unfamiliar with — in other words, will consumers pay to watch an on-demand stream of a new TV show drama, documentary or reality show? Using myself as a gage, I wouldn’t pay for individual on-demand episodes of a TV show or movie I wasn’t fairly familiar with. Promotion and word-of-mouth still has to take place.

If consumers will pay-per-view for an unfamiliar on-demand TV show, can the content still contain ads? I think the answer to this depends on the content and its perceived value – i.e., how well it is promoted, and the resulting perceived value that is generated in the potential consumer.

Once “Lost” was a hit TV show, would the fanatic fans have paid for on-demand streams of new episodes? Probably they would have, if they could have gotten them, say a week or so in advance of the actual broadcasts. “Lost” fans would have also put up with ads in the advance on-demand stream. They might have grumbled about it, but if that were the only way it was available in advance, many of them would have opened-up their wallets and paid the price monetarily and with their attention to the embedded ads in order to satisfy their “Lost” habit. Clearly, the producers of “Lost” – ahem – “lost out” on a time-sensitive revenue stream opportunity.

Bottom line, I believe it all revolves around the content and the real and perceived values that the content delivers.

I liked last season’s remake of the old “V” television series. If I could be assured the production values remained just as high, I might pay to subscribe in some manner. If the “V” series is picked up again by ABC next season, I would also pay to subscribe if I could get episodes via on-demand streaming before they were broadcast.

In the meantime, we are still dealing with the death-throws of the old broadcast model with its old appointment based viewing schedule combined with the old shotgun advertising approach. ABC broadcast TV affiliates would have had a cow if “Lost” episodes had been made available as a paid on-demand OTT stream before the episodes were actually broadcast via the network.

The final destination of OTT and when it ends up at that destination depends on what is right for the time. Both delivery infrastructure capabilities and consumer demand will make that determination.

Should You Pay For Content?

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I was listening to a podcast where the hosts were chatting back and forth about the newly offered Hulu Plus, where for $10 dollars a month, you can get Hulu on a wide variety of devices including smart phones and over-the-top Internet TV boxes. Hulu is also offering a somewhat wider, but still incomplete back catalog archive of shows. One of the hosts was saying he wouldn’t pay for content, he wanted it “for free.”

Whether we realize it or not, we are all paying for content, either directly or indirectly. Even if we have only a TV antenna and watch only the local TV channels, we are still paying for content indirectly via advertising. When we buy consumer products of virtually any kind, part of what we pay goes for advertising, which pays for content creation.

If we are paying indirectly only, someone else is deciding for us as to the quality of the programming content. We can either consume that content or not, but we still pay as consumers buying products. We have very little indirect control over what gets put on the air. On the other hand, if we pay for content directly, then we have far greater control over the quality of the media we are consuming.

If Hulu can offer value for the money, then it will succeed What they have to do is figure out what people are willing to pay for. Perhaps that value revolves around putting highly-sought-after content on as many devices as possible. Perhaps it revolves around coming up with the absolute best back catalog of old TV shows. Imagine having instant streaming access to every TV show ever produced in every country in any language, and every movie ever produced anywhere in any language. Something like that would be well worth paying for. Imagine a site such as IMDB.Com that lists every movie and TV show ever made, except as a subscriber you could instantly stream it – now you’re talking. Hulu, anyone else out there – are you listening?

I personally would be willing to pay for a service such as Hulu, except for one small glitch. There are no back catalog shows on the site at the moment that really excite me. Network drama shows can sometimes be quite good, but my tastes are somewhat different.

When I had Dish Network, I was watching a few selected shows on only 3 channels – Discovery, TLC and History. I can get most of these shows if I really want them at some point via Netflix. To my way of thinking, Netflix is a much better value. Netflix has a far wider variety of content, plus they also offer the handy rental service of DVD’s and Blu-ray discs.

The verdict is currently out whether Hulu will be able to figure out what value it needs to best serve its customers. If people are paying Hulu money directly, then Hulu had better quickly figure out exactly what those customers want and do its best to deliver it to them.

Hey Hulu, here’s an idea to try. Offer first-run streaming movies, but do it the Hulu way. I would be willing to pay for a first run movie streaming for a nominal pay-per-view fee, say $5.99. Vudu is offering streaming first run movies, but you have to have a big fat Internet connection to be able to use Vudu. The Vudu service demands way more bandwidth than my Internet service can currently deliver.

Here’s yet another idea for Hulu – offer exclusive, Hulu-only content consisting of well-produced material revolving around the “Entertainment Tonight” type of concept. Do exclusive interviews of movie and TV stars. Do exclusive interviews of directors. Give people real value for their money. Make your customers want to not only see you succeed, but motivate them to help you succeed.

Do Paywalls Ever Make Sense?

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PaywallThere was a recent article at Arstechnica.Com describing how The Times in the U.K. ended up cutting its web traffic in half by simply requiring registration so that viewers could read their articles. Prior to this, the articles on the site were freely available. The registration requirement is in anticipation of their future paywall plans.

I have to admit that I’m one of the people who left their site more than once when I clicked on a link and was presented with the registration requirement. I’ve done the same thing on other newspaper sites as well. Will people pay for online news?

At its essence, news is often glorified gossip.

There are plenty of successful paywall sites. Here are three sites that incorporate paywalls that I personally find worthwhile enough subscribe to: Netflix.Com,  Rushlimbaugh.Com and FHU.Com.

Netflix began life as a DVD rental service and most recently added a very popular streaming service as value-added subscriber benefit behind a paywall. The Netflix streaming service helped convince me to sign up and become a customer, as well as the availability of Blu-Ray discs. If Netflix had DVD’s only, I wouldn’t be a subscriber. Streaming and Blu-Ray make me willing to open my wallet.

Rushlimbaugh.Com puts the site’s massive and growing archive behind a paywall that includes access to the Rush Limbaugh podcast version of his radio show where they perform the courtesy of cutting out all of the network ads. Being able to receive the ad-free podcast of the daily Rush Limbaugh radio program is why I subscribe. I rarely sign into the site and go behind the paywall. I want the ad-free daily podcast, so I pay, even though I could get the program for free by listening on the radio.

FHU.Com also puts a massive and growing archive of radio programs, books and video behind a paywall. I want access to this material, and since it’s a charitable organization, I am willing to donate to gain access behind the paywall and support them.

I don’t envision myself ever paying for access to a newspaper website. I have never subscribed to a printed newspaper. I used to subscribe to a number of printed computer, stereo and photography magazines, but somehow that lost its appeal a number of years ago and I let the subscriptions run out.

For a paywall site to be successful, it must have something behind that wall that people want access to. They must offer something of value that revolves around the essence of what they do best.