Wishful Thinking: Hollywood Believes Next Generation Of Kids Will Pay For Content
from the don't-stop-believing dept
Well, it looks like Hollywood is going to keep betting against basic economics. A new report has come out suggesting that the latest generation of kids are perfectly happy to pay for digital content. The report suggests that it's just the slightly older generation -- "the Napster generation" -- that isn't interested in paying for content. Perhaps I'm missing something, but there appears to be no indication of how this conclusion was arrived at, other than some random research firm says so. There is no indication of an actual study or methodology -- though, if someone can actually figure it out, please let us know in the comments. Frankly, this sounds like wishful thinking. It's premised on the idea that the reason many people don't pay for content today is because they "don't know any better." But that's hogwash. People understand the legalities of it all. It's just that many don't buy into it. Furthermore, having the legacy players bet on this fiction that the next generation of kids will magically start paying for what their older siblings got for free means that these legacy players will hold back on making the major changes they need to make to their business models. This kind of report is the sort of thing that is written to make big company execs feel good about their unwillingness to adapt -- rather than give them any sort of useful advice.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Filed Under: content, kids, paid content
Reader Comments
Subscribe: RSS
View by: Time | Thread
I think they're right.
The new generation is willing to pay, indeed. But they prefer to pay the artist directly.
[ link to this | view in chronology ]
Re: I think they're right.
[ link to this | view in chronology ]
Re: Re: I think they're right.
[ link to this | view in chronology ]
Re: I think they're right.
[ link to this | view in chronology ]
Re: Re: I think they're right.
The fact that it is already happening? Many younger people who pirate or previously pirated are find ways to support artists directly. The evidence may be anecdotal but it's still evidence.
[ link to this | view in chronology ]
[ link to this | view in chronology ]
What I won't do is pay an artificially high price for a good that is worth less than a penny physically. (Again, ignoring costs to the creators, just cost per copy)
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
Re: Re:
[ link to this | view in chronology ]
Re:
That seems to be about the price lots of people are throwing around. Here's the problem for the independent author who wants to sell his/her books directly to the reader: most of the sites out there for authors won't even LET you sell it at that price point. I have a book on Lulu, for example, and I set the price of my paperback at $19.99, which I hate, but I did it because the minimum price they would have allowed was something like $17 and change and I'm OCD about getting at or near round numbers.
That, of course, is where selling the added values comes in, something I'll be doing shortly. But for those that just want the book, it's really difficult for the author. Even cheapy book printers probably wouldn't allow you to sell a full length novel @ $7 and make a dime.
Not that I'm complaining. Challenges are what make life fun....
[ link to this | view in chronology ]
Re: Re:
[ link to this | view in chronology ]
Re: Re: Re:
And my sincere thanks!
[ link to this | view in chronology ]
Re: Re: Re: Re:
How will we know it when we see it?
[ link to this | view in chronology ]
Re: Re: Re: Re: Re:
If you mean which book is mine, I suggest following the link on my site so that I don't take up Mike's space sounding like I'm spamming to sell books, which is certainly not my intention.
http://www.conspiracyfiction.blogspot.com/
[ link to this | view in chronology ]
Re: Re: Re: Re: Re: Re:
[ link to this | view in chronology ]
Re: Re: Re: Re: Re: Re: Re:
I freeloaded, but I'll be happy to help promote it. It has 2 chapter 13's, so don't use chapter numbers to remember where you are...
[ link to this | view in chronology ]
Re: Re:
[ link to this | view in chronology ]
Re: Re:
Senshikaze makes a good point, you can probably get a few bucks for selling an ebook directly (less if you sell through a middleman), but even giving away free ebooks might convince me that it's work $20 to buy your book. (I'm a bibliophile, and while ebooks are nice for previewing an author, nothing beats the deadtree version.)
[ link to this | view in chronology ]
Re: Re:
[ link to this | view in chronology ]
Re: Re:
[ link to this | view in chronology ]
Re: Re: Re:
[ link to this | view in chronology ]
Re: Re: Re:
[ link to this | view in chronology ]
Re: Re: Re: Re:
=D
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
Re: Re:
[ link to this | view in chronology ]
Re: Re: Re:
[ link to this | view in chronology ]
Re: Re:
[ link to this | view in chronology ]
Re: Re:
http://www.bluray-dvd-players.com/2010/06/30/3d-blu-ray-player-and-3d-tv-sales-exceed-55-mi llion/
http://www.engadget.com/2010/06/25/us-consumers-purchase-55-million-worth-of-3d-tvs-and-bl u-ray-pl/
3D is here to stay, get used to it.
[ link to this | view in chronology ]
Re: Re: Re:
[ link to this | view in chronology ]
ROFLMFAO!!
The kids get $50 dollar iTunes gift cards and use them. One simple question, where do the other 9,550 songs on their iPods coming from?
The data shows that the kids and teens are the ones actually doing most of the downloading and sharing among friends. That is spreading up through the age groups.
"This kind of report is the sort of thing that is written to make big company execs feel good about their unwillingness to adapt -- rather than give them any sort of useful advice."
I was going to make the same point. The execs only want to hear the good news and deny the bad so they surround themselves with people that say exactly what they want to hear. It kind of reminds me of the band playing while the titanic sunk.
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
Wow
[ link to this | view in chronology ]
Yeah, right!
[ link to this | view in chronology ]
Re: Yeah, right!
[ link to this | view in chronology ]
Re: Re: Yeah, right!
[ link to this | view in chronology ]
Knowing that the distribution cost of a digital file is very low, it is counterproductive for the industry to try to convince any generation that the profit margin for them should be higher, and that the restrictions on the product should be greater. The "Younger" generation has already figured out that the industries are trying to pull the wool over their eyes.
Sure, there are plenty of people willing to pay for these products, but the internet savvy generations have realized that cost value is an important factor in what they spend their money on. If you try to charge someone $15 for a severely restricted digital movie, then it's just insulting to the buyer, especially after paying $10 to see it at the theater.
It's ironic that these reports are trying to say that the younger generation is willing to pay, but they never seemed to ask exactly WHAT they were willing to pay.
[ link to this | view in chronology ]
Re:
If ever I have heard a death toll for an industry...
I would argue against you on this one though. It is not a problem for the industry - it is a problem for the legacy record companies. The recording industry as a whole has no problem with well educated consumers.
[ link to this | view in chronology ]
Not a chance.
[ link to this | view in chronology ]
How does anyone justify this guy having to pay for these movies. And there's no one in Hollywood who's going to offer a product that will do that sort of thing. Just negotiating the legal end makes it more expensive than the money they could ever raise.
I support intellectual property taxes.
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
Re: Re:
[ link to this | view in chronology ]
Actually, in my limited experience, no they don't. And why should they? For most people, all law is a big meaningless jumble. And at least things like "don't kill" and "don't steal" make sense. Copyright doesn't. But yes, once you explain it to them, they *really* don't buy into it. How should they buy into something that flies in the face of common sense and natural laws?
As for the issue at hand, I agree with Lisae Boucher above.
[ link to this | view in chronology ]
I think the reason I used it so much back then is because I couldn't afford it. These days I rarely buy CDs, but do buy vinyl every once in a while, but only if I'm reasonably sure it's going to be a good record. I almost never buy movies.
That's not to say I don't consume content. But I don't download it either. I use Rhapsody to consume music. I use Netflix to consume video. If it's not available when I want it, then I find it pretty easy to ignore.
It has nothing to do with a "Napster" generation, and everything to do with an "On-demand" generation. I need to access whatever, whenever... and there's no good reason why I can't.
[ link to this | view in chronology ]
Re:
Bingo. You couldn't have said it any better. It has nothing to do with not knowing any better, it's a matter of the age of convenience. There are so many services that offer what users want any time they want it, those that consume that way are at a loss as to why everyone else isn't doing it the same way.
I get into this with my parents all the time. An odd example recently occurred when my father told me he was growing cucumbers in his garden and wished he knew how to make pickles, but he didn't want to go out and try to find a good book for it, spend all that time, and then maybe not be all that good at it. I literally facepalmed myself in front of him and said, "Dad, just Google 'pickling cucumbers', pick a link or two, and get to pickling yo!".
Well, after he slapped me for talking like a moron, he did just that and was amazed at how much information was available to him when he wanted it.
Then he turned to me and said, "it looks like I need a specific kind of mason jar to do it right. I don't know where to find those."
And then I facepalmed myself again before screaming, "GOOGLE IT, OLD MAN!"
[ link to this | view in chronology ]
Re: Re:
And I think you are way to involved with your dad's pickle...
[ link to this | view in chronology ]
Re: Re:
[ link to this | view in chronology ]
Re:
I'm 30 years old and am probably considered part of the "Napster" generation, but I would say I've fully embraced the on-demand culture. I use Netflix streaming. I buy video games on-line or not at all.
Two weeks ago my air conditioning wasn't working well, I went to the basement and realized that the air filter needed to be replaced. I grabbed my keys, jumped in the car and started heading to Home Depot - it was 12:45am. I ended up going to Walmart (only thing that was open) but I was frustrated that I couldn't go to Home Depot. I need something - I have money - I want it now.
I don't think theres any going back from that mentality.
[ link to this | view in chronology ]
Re: Re:
[ link to this | view in chronology ]
Re: Re:
Couple of things you could have done better, first bought spairs in advance and second if you didn't do so yet calculate the lifespan of your air-conditioner and start saving money to buy a new one every month as it will eventually fail catastrophically.
The same rule is valid for every other thing you own except for IP infested goods, since you don't own them apparently.
[ link to this | view in chronology ]
Things COULD Change...
Right now I pay ~3000 per year for Internet, cable services, Internet subscriptions, books, and CDs and DVDs -- Not including theater or concerts or hardware to view digital content! This is just for recorded and/or published media. And my estimate could be low.
Certainly, I have a wife that accounts for a chuck of this expense. But regardless, I am paying out this kind of money and the content industry wants even more. I say that because I watch only very rarely a Hollywood film at home, because I only have AT&T U-verse video on demand, and their offerings suck, and are hugely over priced. I don't want to bother with renting DVDs, or buying DVDs (or any other format).
I don't want to pay extra for HD content. I don't want to pay extra for 3D. I don't want to pay "convenience fees" to buy tickets online.
The only significant industry in the world that expects to raise prices and hike up profits as they add features to their product and lower their production costs is the media industry!
Where would computers be if we paid premiums, and continued to pay premiums for every improvement made to computer systems?
At some point progress in digital technology MUST make access to content cheaper to the consumer. Every year that goes by making it more expensive to access content and information will force people to find ways to access that content and information in a way they can afford.
Either the next generation will be wealthier by a huge margin than all that have gone before, to the point they don't care if Media is ever more expensive, annoying, and difficult to access, or the media industry is absolutely delusional.
I go with delusional.
[ link to this | view in chronology ]
Who's really paying though...
Research firms are paid specifically to spin data in whatever way is necessary to prove whatever point the company paying them is trying to make.
[ link to this | view in chronology ]
Ha
[ link to this | view in chronology ]
The Truth!
[ link to this | view in chronology ]
Propaganda
[ link to this | view in chronology ]
Not a chance.
[ link to this | view in chronology ]
Re: Not a chance.
http://mises.org/daily/4553
In a world of abundance, high prices cannot be sustained. Information, especially in digital form, is limitless. By economic law, things that are limitless earn a price of zero.
[ link to this | view in chronology ]
[ link to this | view in chronology ]
They treated us like garbage and now is payback time.
[ link to this | view in chronology ]
They would be willing to pay...
[ link to this | view in chronology ]
Re: They would be willing to pay...
I don't think most people (young and old) distinguish between the content and the services around them. Youngsters today pay for convenience and access a lot, but probably call it paying for content.
That is what on-demand is about, rhapsody on your cell phone, Netflix and RedBox, etc. They pay for on-demand to watch House episodes whenever they want and call it paying for content - of course, they could wait for the episodes to air, or search for them on the internet, but on-demand is easier - and they get the content with the service.
[ link to this | view in chronology ]
Re: Re: They would be willing to pay...
[ link to this | view in chronology ]
Re: Re: Re: They would be willing to pay...
Even though the content is free elsewhere, the consumers are paying money for the combination of the abundant content - for which economics sets the price really low - and the scarce product that comes bundled with it. And at the end of this process, they think they just bought music or a movie or something. They have unintentionally assigned the money they have just spent to the content - which is free of cost, but full of value rather than the scarcity bundled with it that is essentially valueless without the content.
That is one of the huge benefits of the economics of RTB with infinite goods. The consumer attaches the price to the item with the greater value even if it is something infinite that has it's price driven to zero. On top of that, they feel good about doing so. The best business models are the ones in which you not only take money from your customer, but they thank you for it.
[ link to this | view in chronology ]
Re: Re: Re: Re: They would be willing to pay...
Until the monopoly part falls apart, this is clearly the best boat to be in.
[ link to this | view in chronology ]
Well they may be willing to pay.......
[ link to this | view in chronology ]
Re: Well they may be willing to pay.......
This is exactly what I'm thinking. Most people think they are being ripped off but the problem is that everyone wants to make money from one persons work (i.e. music industry out of artist)this is why cost is so high, if the artist was not tied down to a big corporation or understood that people would buy more of their work if it were reasonably priced then they would fight for us but they don't think that way they just see how much money they are getting and don't think of increasing revenue/profits.
[ link to this | view in chronology ]
To me it's all about overvalued product
There are some things that have given me a lot of content for my money. Interestingly enough, it's usually video games. Mass Effect, Fallout 3, Dragon Age......
Media companies have overvalued their products tremendously. The only one that gets it close is Netflix @ $10/month
[ link to this | view in chronology ]
Re: To me it's all about overvalued product
Why bittorrent a movie when I can just fire up the xbox and stream that same movie to my TV? The only problem with the current model is waiting on the DVD window. Bittorrent still looks pretty darn appealing when I can get a DVD quality rip right now or I have to wait 3 more weeks for the legal Netflix version.
[ link to this | view in chronology ]
Supporting the "industry)
[ link to this | view in chronology ]
[ link to this | view in chronology ]
gave away digital copies of Tom Petty and the Heartbreakers' recently debuted "Mojo" to purchasers of concert tickets
They're doing the whole "give out an infinite product and charge for the scarcity", but they're actually doing it backwards!! I mean, giving you a (free) RtB after you already bought is just absurd. Also, they were forced into that sort of thinking, and they're still getting it wrong. I wouldn't read too much in this article. Obvious troll is obvious.
[ link to this | view in chronology ]
PAY?
[ link to this | view in chronology ]
Youngsters have always bought premium content
[ link to this | view in chronology ]
Re: Youngsters have always bought premium content
People will buy when they think it is worth it. Making your own xbox or ps3 games is a pain in the butt. Itunes is convient. Creating and using your own ringtones isn't so easy. Nothing groundbreaking, just path of least resistence I think.
[ link to this | view in chronology ]
[ link to this | view in chronology ]
The American Nightmare
If anything they will be less willing, it's getting more and more expensive just to live, and if you are fortunate, work in this country - never mind movies and music.
I'm of the opinion that the next generation is comprised of extremely savvy consumers that have outlets to communicate with one another like never before. Oh yeah and HATE the MPAA and RIAA.
Good luck cause these kids aren't stupid.
[ link to this | view in chronology ]
[ link to this | view in chronology ]
[ link to this | view in chronology ]
[ link to this | view in chronology ]
[ link to this | view in chronology ]
It's about convenience
[ link to this | view in chronology ]