“How much you’ll pay for what you used to get for free”

I think Mr. Tom Petty was onto something when he wrote “The Last DJ”. We are at a point where time is such a precious commodity that we are willing, eager, and able to pay a premium for its convenience.

Stop and think about the course of media, Broadcast TV delivered on the promise of providing free content supported by advertising. However, consumers were bound to ridged airtime schedules.

Then Cable TV, introduced the “pay for content – no commercials” model. Shortly thereafter, commercials make their way to cable tv. Why? Because ad revenue far outweighed the revenue generated from subscriptions alone. (Besides, who doesn’t want to get paid from both sides (consumers and networks) Satellite Radio – same thing, originally offered with no ads, today – ads appear on most popular channels.

Today, in a world where time truly is money, and instant gratification is the expected norm, more and more people, (particularly the younger generation) are willing to pay for content that is otherwise free, so long as they can consume it when, where, and on whatever device they choose.

So if you buy into the belief that future consumption will be a-la-carte, why not start cutting the cable cord now?

Well, for some, they have already taken the plunge. However, for most, it will take more convincing that they will be able to get the same (if not more) content than currently available by cable providers.

Today’s reality is that the average consumer can get at least 60-70% of their content either free or at a-la-carte pricing (on any device), however the services by which to get this content are too fragmentized, thus making it financially unattractive. Once the cream rises to the top and companies begin to acquire/merge, much more streamlined services will attract consumers to make the shift.

So, are you ready to take the plunge???

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