Hidden Moats in Consumer Subscription

Subscriptions are unbelievable. You have recurring revenue that, ideally, compounds month after month. Nothing else matters because you have growing subscriptions. And then it stops. Suddenly, you report a loss in subscribers. And panic ensues. Suddenly, you ask: should I have been so anti-ad all these years?

The subscription model means content providers are paid regularly no matter the quality and quantity of the product. Makes sense – being paid on a regular basis before you make content is awesome, but in this subscription economy, we have lost the ability to place value on each individual film. If the company spends time and energy on only certain ... See more