The Lefsetz Letter comes by email and is an analysis on music, entertainment and technology. Lefsetz wrote a short history on how the last 20 years in film/TV and music has put us squarely into the rental/streaming of our entertainment vs. owning our music, movies and TV shows.
Although Beats Music is not mentioned, his post, ‘Netflix vs. Spotify’ lays out how visual entertainment has been training customers for decades to pay a monthly subscription to “rent” film/TV while music stayed with the ‘own-it’ model well into the 21st century.
Lefsetz describes the advantages and disadvantages that have occurred through the years concluding that rental/streaming has arrived for all entertainment and will only grow from here. Ownership is not a sustainable relevant business any longer.
Read Netflix vs. Spotify here.
This history is particularly relevant now as Apple is rumored to be renegotiating the Beats Music licensing agreements to a lower monthly subscription price, possibly $5 to $8 per month instead of the current $9.99.
ReCode writes (from people who’ve heard Apple’s pitch secondhand) that “Apple’s best iTunes buyers spend about $60 a year on downloaded music — $5 a month.” The thought here is if music streaming subscriptions can drop, more average music buyers will begin to stream…
Meanwhile, Spotify announced they are giving a 50% discount for family members. So if you are a premium subscriber for $9.99/month, you can get your teenager their own account for $5 more per month.
Stay tuned, prices may be retreating for music streaming.