by Mike Masnick

Filed Under:
content, kids, paid content

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.

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  1. icon
    Paul (profile), 5 Aug 2010 @ 8:27am

    Things COULD Change...

    ...If the media companies decided to make content available via an affordable, comprehensive, easy to use, and consumer friendly service.

    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.

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