One of the more intriguing arcs set to accelerate with online video is whether or not genie-back-in-the-bottle tactics can succeed. Such tactics pose a conundrum that can take on multiple forms,
such as:
· Will consumers already paying for online content accept a price increase?
· Will those used
to content being free begin paying for it, particularly in light of so many other gratis options?
Unlike Procter & Gamble charging a bit more for paper towels or PepsiCofor a bottle of
Gatorade, pricing models for online video are still in nascent stages. Can the business withstand what packaged goods and other companies have been able to do for years: raise prices and not bleed
customers?
The most likely test case would be Netflix. Its brand is intertwined with its low cost. What if Netflix's subscriber growth plateaus and it needs to bump up prices? 20
cents here, 20 cents there may be OK, but marked increases may send people elsewhere.
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For several years, Hulu was known as a steal: a library of top shows available for free and on-demand.
That's still around, but has been curtailed by emerging pay service Hulu Plus.
In a blog post cited by Multichannel News, Hulu CEO Jason Kilar noted that Hulu Plus in June
reached 875,000 paying subs, a number that has risen steadily since the November 2010 official launch of the service.
"We anticipate exceeding 1 million paying subscribers before
the end of this summer; previously we had forecasted crossing that threshold around the end of this year," Kilar wrote. "We are extremely encouraged by the ramp of this
business."
Hulu is for sale, so projections about the continued growth of subscribers are sure to occupy the number-crunchers at potential buyers.
Another interesting
barometer will be Glenn Beck's new venture. With his rants having been free on Fox News (albeit to cable subscribers), he's now moving to an online pay service with a daily show. His goal is
not just to sell himself, but put together a full network with - get this -- scripted programming, according to The New York Times.
(Here's a pitch: a drama about an
arch-conservative who heads to Washington looking to shake things up. But he meets John Boehner and other members of the establishment who thwart him. His challenges appear monumental. But then, a
brilliant talk show host advises him on how to conquer, and he ultimately succeeds.)
Beck wants $4.95 a month for access to his show and $9.95 to watch the whole broadband net, GBTV.
"I think we might be a little early," Beck told the Times. "But I'd rather be ahead of the pack than part of it."
Beck often speaks about the end of the
world. It will be curious if his new venture is a beginning of something.