The Future of Streaming Services: A Move Toward Pay Per Play

With the rise of streaming services, the video store industry has undergone significant changes. Despite the demise of Blockbuster, which once had a robust rental model, streaming has revolutionized the way we consume media. Services like Netflix and HBO Go have provided a vast selection of titles, both new and old, and streamlined the viewing experience. However, as we approach a new era, what's next for streaming services?

Evolution of Streaming Services

The streaming phenomenon has killed off most traditional video stores, with Family Video being the notable exception. While it might seem like the mafia is behind its success, the truth is that streaming has brought more convenience and selection to the table. Now, consumers can easily access older titles and popular content without the need to queue up for limited copies. Additionally, the convenience of ordering content from a home PC or TV has further enhanced the experience.

Drawbacks of Current Streaming Services

Despite their advancements, streaming services still face significant challenges. Two of the main drawbacks are licensing and subscription models.

Licensing

Most streaming services can only carry titles that they have either produced or licensed temporarily. This limits the variety of content available to users and can lead to gaps in the selection, especially for older titles.

Subscription Model

Another issue is the subscription fee. Many users find it cost-inefficient, particularly when you consider the number of movies or show episodes they watch per month. For instance, a 22-episode series on Hulu Premium, which you might watch from September to May, can cost around $175, while a comparable DVD set might only cost $30, often with more value as it can be owned indefinitely.

Predicting the Future: The Pay Per Play Model

One potential solution to these drawbacks is the transition to a pay-per-play model. This would allow users to access a virtually unlimited selection of titles, with the option to pay a small fee for each episode or movie they watch.

Benefits of Pay Per Play

Higher Profits: By offering a lower, metered fee, streaming services can attract a larger number of paying customers, even if they are paying less each month. Additionally, those who watch frequently could pay a higher fee, enhancing overall profitability. Reduced Churn: Many users subscribe to streaming services only during free trials or for short periods, never returning. A pay-per-play model might reduce this churn rate as it would align more closely with actual usage. Revenue Sharing: Studios and production companies could negotiate a percentage of the pay-per-play fee, ensuring a fair distribution of profits.

For instance, a popular title like Huge Fans: Furious Series might generate more profit through the pay-per-play model, while a lesser-known film like Ishtar or an educational title like Agricultural Trends of 12th Century Mongolia would still contribute to the platform's revenue.

Conclusion

As we move forward, the trend toward a pay-per-play model for streaming services could revolutionize the industry, offering users greater flexibility and convenience. While challenges remain, this innovative pricing structure has the potential to make streaming services both more profitable and more accessible to a wider range of consumers.