I was on Amazon.com this morning looking at the TV shows available for download. It’s similar to iTunes, but the shows (at least NBC shows) are $1.99 instead of $.99 and they have several different viewing options (you can download it to your Tivo, for example). So anyway, while I was browsing, I had an epiphany. The model has worked out relatively well for the distributors (amazon.com, iTunes), of course. And the networks have finally found a way to monetize their content to the consumer (outside of DVDs). But it seems to me that the networks are missing out on an opportunity.
Let’s say I’m an avid Hero’s fan (which I am actually) with a wife who likes to watch something at the same hour (which I do) or I like the flexibility of being able to tote my favorite shows with me wherever I go on my iPhone or PMP. If I could buy a subscription, or season pass, to the whole season of Heros for one charge, $10 or $15, I just might do that. As new episodes are released, I could go watch or download them at any time. I’m getting a bulk discount and the network gets me to pay for some of the episodes even before they air. Moreover, the network may even be able to cut out the middleman. But for the networks, theres an added bonus – the “gym membership effect.”
Most gyms can sell an infinite number of memeberships, regardless of the size (within reason), because they count on people going for a while and then slipping out of their routine. Their clients still pay for the membership, but rarely go. They could have 10,000 monthly paying members, but only a small portion go religiously. For the media companies, this translates into a previously unavialable upsell. They may be able to attract more money from people who otherwise wouldn’t have spent $10 or $15 on video downloads – like the person who thinks they’ll download a few episodes, but sees this as a benefit becuase they’ll be less restricted by the clock or calendar.
As far as I know, some of the networks or content producers may already be doing this or considering it, I don’t know. I’m curious what you think. Would you pay for a season pass of Heros, House, or 90210? No comments on my choise of programming though, we all have our guilty pleasures)?
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