One of the biggest challenges for all content businesses is the revenue model. Free content and rely on advertising? Or paid content and rely on subscriptions?
This post from Ben Thompson unpacks that question and looks at the benefits and pitfalls of each. He concludes with the rhetorical question – why can’t we have both. Then looks at three of the most successful content businesses of our time – the New York Times, YouTube and Netflix – to unpack how they are all moving towards this hybrid revenue model.
All three of these businesses started one way or the other, but they are all converging on the same model today. For Ben, there is a lesson in that. His blog, Stratechery, is one of the most-read publications in Silicon Valley and for us here at Equity Mates, this was particularly interesting as this is a question we’ve grappled with over the journey.
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