More-and-more firms are copying the Netflix model of offering a massive bundle of content under a monthly or annual subscription. But should they? And what has this got to do with platform businesses?
Really interesting piece, I thought the Playbook example was a great way to incentivise creators. What happens when between the platform that charges for the sub, and the creator, there is another layer - I am thinking scribd etc. Is there a good example where the charging and paying model is very good and working really well for both the content provider (middle) and the creator?
I am not familiar with Scribd and can't think of other recent examples with that middle layer. I guess this would be like traditional videogame publishers who act as middle layer between the consoles (platforms) and the creators (actual development studios). But the whole point of most new platforms for creators is that there is no more middle layer! Just the platform...
Really interesting piece, I thought the Playbook example was a great way to incentivise creators. What happens when between the platform that charges for the sub, and the creator, there is another layer - I am thinking scribd etc. Is there a good example where the charging and paying model is very good and working really well for both the content provider (middle) and the creator?
I am not familiar with Scribd and can't think of other recent examples with that middle layer. I guess this would be like traditional videogame publishers who act as middle layer between the consoles (platforms) and the creators (actual development studios). But the whole point of most new platforms for creators is that there is no more middle layer! Just the platform...
Great article, I especially appreciate the math models. I run a subscription service and I dig this big time. Two thumbs up!
Thank you. Glad it's helpful.