QUIBI AND VC-SUBSIDIZED MEDIA

The apparent limitation of the ad-supported media business model is that there will never be enough traffic to satisfy the beast. But while subscription revenue is stickier and gives creators more runway and short-term security, eventually the flame that started any new project will be extinguished. A new muse will need to be found.

There is a lot of excitement about traditional TV companies transitioning to streaming, but an unavoidable conclusion is that the streaming business is structurally much less profitable than traditional TV.

Subscription businesses allow you to distribute portions of your revenue to people who add value. This isn't rocket science this has been the business model for cable businesses for decades.

The first wave of media was fueled by cheap audience acquisition from social media companies like Facebook which created BuzzFeed and UpWorth. The second wave is the subscription wave. Consumers want curation, contextualization, and recommendations

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