From Disaggregation to Cross-Media Bundling
There has been alot of talk about ‘disaggregation’, of the unbundling of content, and the subsequent phenomenon of micro payments and so on. What this refers to is services like iTunes that offer the user/consumer/iPodian the opportunity to purchase a single song rather than the whole album. Or one can purchase a single article rather than subscribe to a newspaper or journal. Some recent articles on this include Sandra Hanchard of Hitwise and Tim O’Reilly of, well, O’Reilly. Many of discussions focus on the freedom of choice this permits consumers: they can choose to purchase exactly what they want, not have to buy a collection with only a few units that satisfy their needs or wants.
What this disaggregation, indeed unbundling, focus misses is the counter activity of cross-media bundling. What I recommend producers do is to offer the option of a single-fee-multiple-form. This offers the audience the chance to purchase one piece of content in many media forms. So I can pay for a book and receive an audio reading version as well as a pdf format. Or I could pay for a cinema ticket, which also sends me out a DVD, as well access to digital components online or mobisodes on my mobile. The list goes on. I think you get the point. Give audiences the chance to experience the world you’ve created in the form they want it when they want it. I may want to watch a show on TV to share the experience with friends and family but also want to be able to watch it on my iPod. Why not give me the option to purchase once and receive the content in many media forms? I think this is the future of purchasing options, along with disaggregation and so on. We can’t offer one choice, but some choices are more meaningful than others.
Oct 8th 2009
Maybe I’m being cynical but the main problem with this is that publishers won’t make as much money. The Hollywood ‘window release’ model is basically that you sell the same bit of content over and over again. Maybe this system has reached its use by date but still seems to be raking it in. Do you think people would be prepared to pay more for a multi platform licence?
Oct 8th 2009
Hey Peter,
I don’t think you’re being cynical, but I do think my point is not clear to you.
What I’m talking about is a principle that is driven by audience-demand. How that insight is actioned can vary greatly.
You can, for instance, as RadioHead did, offer the entire lot as a single package. They have control (now) over their IP – so no problem. But even services like Amazon are now offering bundling services — keen to cash in on ebook and print book sales and music etc.
Also, at present, people can buy a DVD of a TV show or film, for instance, and also purchase a stream of it online or download (or get it for free legally or illegally). People do get both, or they get either. IF they want both, why not give them the infrastructure do it? This will happen — there will be services emerge that enable digital and tangible (and even event) bundling to occur. Imagine a service where you can purchase a digital download (or perhaps an extended sample – 20 mins), DVD (when it is released) and cinema ticket? You turn up to the theatre and pick up your DVD at the same time. Guaranteed sale of both.
This system can still be controlled according to location, and even staggered (you receive a sample digital download first, you see the movie, and then get the DVD) — but you’ve bought them all up-front. That makes sense for the fans and for the sellers.
I’m not talking about replacing existing systems. I talking about emerging systems that will compliment (temporarily disrupt) existing ones.
Thoughts? Over to you.
Oct 8th 2009
Oh, and here are the follow up posts I did on the topic:
http://www.cross-mediaentertainment.com/2007/01/hitwise-on-cross-media-bundling/
http://www.cross-mediaentertainment.com/2007/01/cross-media-bundling-example-1-virtual-and-print-books/
http://www.cross-mediaentertainment.com/2007/10/wow-radiohead-no-really/