YouTube’s New Music Streaming Service Not Too Different
YouTube’s going to be offering a service that replicates what’s available from services like Spotify, Rhapsody and others that to me, with a few quirks of user interface preferences, really doesn’t differ much for the consumer.
But I have a hard time caring much about this. The established principle here is that there is a business model for the streaming of music online in which musicians and rights holders get paid, but what they’ll get paid is pretty minimal.
Why is this? Because the marginal cost of delivering music via these means is pretty close to zero, and they’re available everywhere. Therefore, the value, though it took a decade or so to arrive at it formally, also goes close to zero.
Live entertainment, by contrast, during that time has increased in value. Ask yourself “why,” and market accordingly. We’ve already established that the “content” alone has a market price of “Damn Near Free.” Yet the live event still commands value.
Treat the experiential part of the product, therefore, with the respect it deserves, and remember that you’re not selling “the content.” You’re selling the whole experience. (More on that another time, too.)