Price hikes, brands fighting and other musings about streaming

Back when I was a pupil at a blacksmith’s the one thing I learned the most is that the cheapest thing you produce often makes the best profit. In our case, it was a necklace, a hammered iron cross on a leather strap. In reality, the piece was laser cut from a generic steel sheet that we just heated up and gave some texture. Cost about twenty cents to produce, sold for about twenty to thirty euro. We sold those enough to warrant a new batch on a weekly basis. People might be unwilling to pay fifteen euros for a handmade handle for a door or a forty for a bottle stand you can attach to a wall, but jewelry always sells higher. Jewelry always sells, it’s something people get and understand. Its value is hammered into the people’s minds from a very young age, pun not intended. While this isn’t the razor-razor blade sales model, where you sell something big and expensive at a loss in order to sell something smaller multiple times, like a razor and its edges, selling people stuff they perceive is valuable at a proper price is far more lucrative. Drop that price a little lower, and you can slowly but surely rack that up once you’ve established how the customers see that price and understand the value you intend for it.

Streaming has become largely the new television. While we still talk about “series,” the word has again transformed to mean something else with streaming. It’s barely serialized anymore in its traditional sense, but I guess we can apply it just fine as these twelve-hour long movies are still chopped into twelve episodes. Television might not go anywhere in the foreseeable future, but consumers will find their chosen entertainment from streaming. Perhaps television will be relegated more towards serious matters like news and such, but before I see that happening, I hope I’m buried six feet under. With people being forced to stay inside and their other liberties being culled in order to battle the Shanghai Shivers, all these streaming platforms have been making a bank. They’ve got a whole year under their belt to get new customers in and assure that what they offer is essential and important. In some eyes, theirs is an essential service.

Just like how we could hike up the price of that piece of steel by giving it a perceived value as a piece of jewelry, streaming services want their service to be seen as the most valued. The only true way they can compete is with IPs, with Netflix amassing everything under the sun that Disney hasn’t, turning it into a cartoon and calling it anime. Netflix Originals, which often have nothing original in them, is their best bet alongside numerous other IPs they are able to showcase thanks to overseas licensing deals. Disney+ has that whole Disney library under its belt, and they’re desperately trying to make Star Wars work. Warner-Brothers movies are going to appear on HBO Max, because the theatres are still closed and they have to make money in some way. Amazon is coming out with that The Lord of the Rings and The Wheel of Time series sometime in the future. Apple TV or whatever their own service was called were was to have The Foundation series, but that looked like a trainwreck from the start and anything but The Foundation. It looked like a generic SF war series. With modern television series, and by extension all the streaming series, looking just as good as the movies in the cinemas, something has to buckle. That something of course is the customers’ wallets.

Disney announced recently that Disney+’s subscription will hike up in price next March, as they are restructuring themselves to market their products directly to the customers through their streaming service. They’re not the only ones either. Hulu and Netflix joined the club and most likely everyone else will follow suit, assuming move high-budget movies and shows will be produced to battle for the consumer’s wallet. Weirdly enough, one service finds itself with too many subscribers, that might end up causing further price hikes thanks to needing more hardware infrastructure behind the scenes to make all things work as intended. In any case, it will be easier for these services to raise the price every now and then once the perception and their place in entertainment consumption have found its true footing, which probably means traditional television dies slowly out and movie theatres become something else. Maybe they become places for prestige showings, where you can finally eat a pizza or a burger in, or maybe they’ll manage to eke out a niche to live in.

This is a format war like we never had before. Prior to streaming wars, even if one format won over others, none of these big companies ended up pocketing most of the money from the consumers directly to their pocket. The information age has now allowed for companies finally to sidestep formats and the limitations they pose for them, i.e. they finally have full control of the media the consumer consumes but can not own at any point, and thus maximize the money they pocket. In that, this isn’t a format war but something new. While some moan how there are more than few streaming services out there, they’re ignoring the sheer danger of streaming monopoly would have. Some argue that Disney and Netflix share the media streaming monopoly and should be broken up. General consumers are quick to trade security and variety for comfort and ease of use. If one or just two services survive, all the eggs are in one basket and the consumer rights are very easily trampled on. However, because streaming is direct-to-customers with nothing in between, like it was with previous formats, there’s nothing holding them back from exercising the utmost bullshit corporate tactics they are able to employ.

Perhaps streaming services should get a similar frontend similar to television, where all services are gathered under one streaming device or program through which the customer can decide what to watch. Perhaps some of these streaming services would be free and be run on advertisements, maybe a few of them are government-run for news and other information bites. The consumer might be able to then pay for special services that they specifically want to watch without losing that comfort of having everything under one roof. You could either label these streaming services with a number or a letter for easier access too, though just listing them in alphabetical order probably would do just fine. Now, why does this idea sound familiar? I wonder…

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