Monty Python goes YouTube, is it enough?

Monty Python have now entered YouTube with some sort of official aim to stop the unauthorized clips of the group on the site. But is it enough?

YouTube has had problems with copyrighted material for a long time. The model which they have chosen consists of an active identification tool where they search the content against a reference library with copyrighted material proved by the rights holders. You can also file a complaint on one of the videos stating that it is unauthorized material. The rights holders can then decide on either to block the content, track the content or monetize from the content.

Monty Python have chosen to start uploading their own content to YouTube, they have so far uploaded 24 videos in their channel. A rather small number if they are serious with wanting to give access to good quality content. But I believe that their aim is more related towards getting attention than anything else. At least since 24 clips won’t stop the flow of Monty Python content, as now there are around 30 000 videos relating to the group.

Interactive advertizing and privacy

An interesting follow-up on the digital fingerprinting technology used by YouTube, to identify copyrighted content, is to start using directed advertizing in relation to the content shown in other programs and other places than the original one.

We still see the rise of video content on the web being monetized in a good way as something which is to come. Google are watching YouTube closely to find out how and where to make money from the service. One way can be to continue with the watermarking and ad based revenue streams, both on and off the platform.

Privacy

I do however see problems in following the users too closely in their use of video content both on and off YouTube.com since it brings up privacy issues. I do especially see those issues arising when it comes to video since it is more disclosing of private issues than for instance music.

Although this can be somewhat solved with opt in or opt out alternatives for the users. It still is a problem since they are likely to get more and more used to the Big Brother like monitoring.

Where to go?

I think we are still in the emerging stage where the content providers are trying out different business models and different rights solutions to their content. Some, like Monty Python, are still in the setting where they think they will sell DVDs and use YouTube as an advertisement channel for the physical products.

My hope is however that the rights holders are going to see the potential in spreading the content, using the digital highways to expand their cake.

Some issues has to be solved, and they are in the emerging of being solved. The first one is to find good models to take in revenue. Ad based or subscription, or some other innovative way.

The second one is to go global on the rights. We live in a globalized world where it makes no or little sense to have diversified rights to digital content. There could be diversified rights to the revenues, but the access has to be global. More on that in a later post.

So, Monty Python might be funny. This is why 24 clips will not be anywhere near enough to stop the unauthorized content of them on the web.

When will I be able to watch “the dead parrot” with complements from Cleese and the boys?

Johan Örneblad

[Via DN]

Spotify premium service to promote user base

I am getting back to Spotify and their model (hopefully) changing the music industry.

It is not new with teasers or previews offered to specific audiences. Which is why it comes pretty natural when the new album with the Swedish artists Orup and Lena Philipsson, Dubbel, is offered to premium users in Sweden almost a week before the public release date. It is interesting to see how the music industry this way, sort of at least, show that they approve the new way of distributing music.

Still, I have not seen the agreements between Spotify and the record labels, it might be so that they share the different revenue streams in some interesting way. But it might also be so, which I think to be more likely, that the record company sees Spotify more as a way to promote other sources of revenues then to strengthen the Spotify model. The service is all too young to be a trusted way of income for the record labels.

It is however interesting to see that it is only the premium service which gets the early access to the preview. Could this be a sign of that it is not enough with the commercials every sixth song to differentiate the two levels of the service? It might. But I strongly doubt that it was not thought of as a way of separating the two in the planning of the business model. It will rather be a continuous process to offer good value for the around €9 the premium service cost each month. It will otherwise be easy to switch to the ad-based level.

Next interesting part in all this is of course as I wrote above, the models of revenue streams between Spotify and the rights owners. Perhaps is it more profitable for both parties to have lots of users using the ad-based one. A hint in this direction is that they only account for that between 2 and 15 percent of the users will use the subscribed versions of the service, according to Martin Lorentzon. Then, still the question is why to offer the early release to the premium costumers?

The same article in Dagens Nyheter suggest that they believe to have 20 million users in 2 to 3 years. A quite large customer base which they have pretty good user information about, due to their music preferencies. I reckon customized commercial spots can be made with quite good accuracy based on that information which makes the community pretty valuable for advertisers. Or perhaps third party use in some way.

For now I still think it is safe to assume that Spotify will continue to offer premiums to the subscription service, in one way or another. Mostly I base this on that you as customer are more eager to use a service which you have actively decided to use. You are also probably more interested in talking to and inviteing your friends to the service as long as it offer good value. This way creating a stable base of users subscribing and becomming part of the "Spotify tribe". The same tribe inviting their friends and promoting Spotify.

But the most important part is however the diversification of the offer towards the costumers. In order to fulfill the diversification needs, there has to be differnet values assigned to the different alternatives. Which is why we will see more early releases and designated content in the premium level of Spotify.

Johan Örneblad