How We Consume and Pay for Content


Once upon a time, we had fewer places to go that would take care of all
our necessities. In many competitive industries like banking, travel,
news media, and telecommunications, providing services as bundles
created advantage and formed loyalty.

It was the beginning of a post I wrote right after a panel conversation at the Cable and Telecommunications Association for Marketing (CTAM) Summit a year or so ago — the age of unbundledorf, we joked with panelists.

As large organizations look for ways to increase their revenue base, they can:

  1. transform more transaction-oriented buyers into customers
  2. sell higher value services to existing customers

It could be a Harry Potter character, tricky and magical at the same

Unbundledorf is resisted by buyers because the perception is that
the sum was greater than its parts. With no reference point for each
part, a bundle sounds like a good deal, doesn't it?

Read the rest of the post with specific industry examples here.

Or stay with this post and some interesting statistics released at GigaOm about what we pay for content. It shows how consumers value paid content relative to consumption time. Take a look.

CPH Cost Channel and Unit

Every time we enjoy an entertainment experience, we consider its value to us. Our calculation will revolve around time invested and enjoyment received, or, as the article says, something akin to cost per hour (CPH).

With digital, we can figure out the hours spent, thanks to viewer profiles and personalization engines down to the individual audience member. I'm hearing Downtown Abbey is the new "not-to-miss" show.

Discovery is still the operative word for entertainment programming. Better content discovery tools keep viewers coming back.

Will CPH take off as a metric for consumers? Will it be adopted by content producers?


In case you were wondering, Dave Justus at GigaOm explains where the assumptions behind the numbers come from:

  • The average length of a theatrical film is 2.366 hours (or 142 minutes)#
  • The average adult reads a book at 300 words per minute#
  • The newspaper time is based on this#. And magazine time is based on this#
  • GFK estimates the average Netflix user watches 8 hours per week#
  • The $86 figure for Pay TV (including premium) is from NPD#
  • The hours are from Nielsen and include Live TV + DVR playback#



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