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12-21-2012, 06:51 AM | #1 | |
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Subscription music is taking off (to overtake Itunes in a few year) what about ebook?
http://www.ifpi.org/content/library/...nd_figures.pdf
2010: 8.2 million paying subscribers 2011: 13.4 million paying subscribers (growth of 63%) 2012: ? 2013: ? 2014: ? 2015: ? 2016: ? The two biggest are Spotify (5M paying subscribers) and Deezer (3M paying subscribers). Melon (2M) Mnet (1M) Rhapsody (1M) and Muve Music (1M paying subscribers) are the other major players. In order to overtake Itunes, subscription services need around 30 million paying subscribers. About the same # as Netflix. Sirius XM satellite radio has around 20M. Could something like this work for ebook? Here's someone who work in publishing take on it: http://www.futurebook.net/content/su...l-ebook-retail Is subscription the future model for eBook retail? Quote:
http://www.huffingtonpost.com/mike-s...b_1684324.html Mike Shatzkin on Why eBook Subscriptions Would Never Work Last edited by Top100EbooksRank; 12-21-2012 at 07:12 AM. |
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12-21-2012, 07:00 AM | #2 | |
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Interesting post. Thank you.
One sentence from the report caught my eye: Quote:
In any case, how can they measure it? Mike |
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12-21-2012, 07:03 AM | #3 |
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Here's the payout rate from subscription music.
http://www.digitalmusicnews.com/perm.../120604youtube per source: "Payable to Artist/Label via digital distributor for sales from July to December, 2011." (Rhapsody purchased Napster last year, though the Napster name continues in various European territories.) Zune 15,159 plays Payout = $437.58 $0.028 per song Ratio = 25:1 iTunes Song Download Napster 30,238 plays Payout = $479.07 $0.016 per song Ratio = 43:1 iTunes song download. Rhapsody 50,822 plays Payout = $668.57 $0.013 per song Ratio = 53:1 iTunes song download. Spotify 798,783 plays. Payout = $4,277.39 $0.005 per song. Ratio = 140:1 iTunes Song Download Keep in mind that only Spotify has free streaming (5 million paying subscribers + 15 million free users). Without free users, Spotify will pay about the same rate as Rhapsody. The downside to offering free streaming: huge losses. Spotify CEO recently said that the company could be profitable tomorrow if they wanted it but their focus right now is on growth and more growth. Spotify lost something like $50 million in 2011. Free users is great for growth since 20-25% of them will convert to paid user (eventually). But it is a drag on profits since every free user will result in a few dollars loss per year for Spotify. Last edited by Top100EbooksRank; 12-21-2012 at 07:05 AM. |
12-21-2012, 11:34 AM | #4 |
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Interesting data, thanks. I wonder how Rdio and Pandora stack up. If the streaming trend continues, and is able to create value rather than destroy it, Amazon and Apple will be obliged to offer their own streaming services at some point.
There are two unlimited subscription ebook services I know of: 24symbols and Oyster (not yet launched). No idea how either is doing. |
12-21-2012, 03:20 PM | #5 |
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I think, eventually, all data will be purchased via subscription (once the retailers figure out a way to make everything available per some SLA).
Amazon has the right idea. That's the model. |
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12-21-2012, 10:53 PM | #6 |
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It is interesting. I've had a Zune subscription for a few years, but I barely look at it. I'm not even sure if it is still valid.
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12-21-2012, 11:00 PM | #7 |
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I use my Netflix subscription regularly, but I am considering switching to Prime for the shipping, music, and lending library. I can't see myself paying for both.
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12-22-2012, 06:53 AM | #8 |
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Yeah, I checked out Pandora many many many years ago and again just recently as well as last.fm but they really don't do a lot for me. I DO listen to internet radio both local stations and a couple of classical and ambient depending on my mood etc. And I certainly don't want anything to do with iTunes.
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12-22-2012, 08:56 AM | #9 |
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I use both Pandora and Last.FM.
And I've tried out the XBOX Music (nee Zune) subscription service. Like'em all. Very good way of discovering new acts. Also a nice way to provide a semi-random soundtrack to day to day activities. But I also buy CDs for albums I really want. A friend of mine caught his son downloading pirate CD music off the net a few years back. He reprimanded him and signed up for a Rhapsody subscription. He figured that for the cost of one CD a month he could keep both his kids current, teach them good ethics, and avoid the potential embarrassment of a court appearance. I'm afraid I don't see subscription services actually *dominating* anything any time soon. (This decade, at least.) The revenue they deliver to the content owners is out of line (too low by far) with what discrete sales + piracy generates. There is room for subscriptions but they're never going to be comprehensive enough, easy enough, or cheap enough for massive consumer adoption. The content owners won't allow it. |
12-22-2012, 10:36 AM | #10 |
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*cuddles his SKY.fm/DI.fm subscription* Best $5 a month I've ever spent. :P Despite having like 5000 songs in my personal collection, the variety of music they give is rather nice. Hell, if it wasn't for them, I never would've known I liked eurodance or house music (please don't hate me! :P Wish they had a celtic channel, though...). (EDIT: Huh. I see that it also includes jazzradio.com. Guess I'll have to check that out...)
On the other hand, ebook subscriptions don't really seem like they could work at all. Unlike music subscription services, the odds of an ebook subscription service having enough worthwhile items that free sources (public libraries, Project Gutenberg) are very low. Last edited by JD Gumby; 12-22-2012 at 10:40 AM. |
12-22-2012, 10:48 AM | #11 | |
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Quote:
The Zune subscription service was great, IMO. For a reasonable monthly fee, unlimited access to music rental, with 5 tracks per month to download and keep DRM-free forever. |
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12-22-2012, 11:59 AM | #12 |
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12-22-2012, 06:27 PM | #13 |
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I wonder if the prevalence of libraries might hinder the acceptance of a subscription model for books. People are used to borrowing books for free; if they pay for one, they expect to own it.
My own local library has started buying Kindle books and it's really easy to use; I can get most bestsellers as long as I'm willing to wait. |
12-26-2012, 06:47 PM | #14 |
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Interesting possibility.
I'd look more into a ebook subscription type model. |
12-26-2012, 08:36 PM | #15 |
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My husband subscribed to emusic until their prices went up, then to Napster (after they went subscription), and then Rhapsody acquired Napster so now it's a Rhapsody subscription. He loves it. He can basically get any album he wants. You can download it to and keep it on your devices as long as the subscription is active.
I personally paid for the Pandora upgrade. I like having commercial free whatever-I-like-themed music whenever I want rather than particular titles (although my husband hates it when the Stan Rogers and similar songs come on, heh). |
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