The Disappearance of the Hit-Driven Business Model

I think the same thing is now happening in TV and in cinema. Technology (and now lockdown) broke apart the old model and changed all the rules, but the questions about the new models are TV and cinema questions, not software questions.

What’s coming into focus more gradually is how bad things are getting for those of us in the audience, too . Something that’s long bothered me and Erin about the hegemony of streaming is that if you do away altogether with physical media, you put yourself at the mercy of corporate accountants (who might decide there’s insufficient R.O.I. when it co... See more

And so that certainly helped a little bit with demand, but it didn't solve this more monetization issue that consumers seem to have, which was why do I need to pay every new piece of content I want to consume? ... The consumer proposition wasn't fully resolved. It was just a step by the industry in the direction. It also wasn't great for the indust... See more

Trouble arrived early in the 21st century, when upstart companies powered by new digital technologies began to challenge the status quo. Entertainment executives reflexively dismissed the threat. Netflix was “a channel, not an alternative.” Amazon Studios was “in way over their heads.” YouTube? No self-respecting artist would ever use a DIY platfor... See more

The problem for consumers in the Passion Economy is that there is no opportunity to own assets. Everything is still subscription-based. Given that readers and listeners act as marketing channel for creators, it makes sense for them to have some skin-in-the-game.

- Changes in the content distribution model have been favorable for creators

In the past few years, startups like Substack, Patreon, and Shopify have created alternative ways for creators to build businesses online through direct transactions, rather than advertising. This shift exposed a simple fact: in an ad-driven world, creators were generally under-monetizing their audiences.