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. identicon
    Michael, 5 Aug 2010 @ 11:08am

    Re: Re: Re: They would be willing to pay...

    Which is great for content creators, I think.

    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.

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