Philip Inghelbrecht, co-founder of Shazam, just penned a brilliant piece at TechCrunch in response to Apple and U2. In it, he lays out a vision for the future based on best-practices adopted by the movie industry. Here’s a quick excerpt then click through for the full post.
“When a movie is first released, it’s typically only available in theaters. Avid movie buffs will pay $10-$15, just to see it once. After that it becomes available on DVD (again $10, this time to own and view multiple times), then Video-On-Demand (think $4 to view over 48-hours), then pay-TV (e.g. HBO at $10/mo, with limited scheduling) and streaming (e.g. Neftlix at $8/mo, easy scheduling), eventually ending up for free (e.g. TNT, assuming you forget about the ads). I skipped and rounded a few release windows here, but it gives you the gist.
The same piece of content is sold over and over again, each time maximizing the end-user’s willingness to pay. Windows of exclusivity can last for decades and be cut across anything that allows for differentiation: format, geography, quality, etc.?