Came across this interesting read in today’s Media Post Around the net in Online… Disney’s ESPN360.com is trying out a new business model. Making ISPs pay for access to ESPN360 content. They claim its the only way they’ll be able to sustain content production. (Via MultiChannel)
Do you need a minute? I sure did. The implications of this are crazy. Say ESPN360 goes ahead and accomplishes this cable-esque business model. (You know, how you have to pay Tata Sky/Reliance/Comcast for access to premium channels like ESPN/HBO). Broadband internet rates would go through the roof. Other big corporate websites would follow suit. The rich-poor divide would exist make it to the internet.
ESPN360 probably thinks they’re being smart by targetting ISP providers. With free content available on YouTube & tons of blogs and tweets out there, people have no reason to pay for a premium subsrciption to the website. Unless they’re die hard fans who have money to spend on premium content in a bust economy. After all, the internet has always been a free medium. If ESPN360 required a subscription fee, people would just pirate the content and share it on YouTube.
So go after the ISP providers mmmmm. Except… WHY would even consider paying ESPN360?! What does ESPN360 offer that other websites don’t?! (<–rhetorical). You really have to wonder, how many premium websites would have to gang together for ISPs to really consider paying a subscription fee. And, while we’re wondering, how much would it even cost? Would I have to pay an extra $1/month to have access to a premium website? Would I be able to pick packages? The Disney package would come with ESPN360 & Disney’s websites. Well, in that case, I’d kind of expect them to come with access to ESPN the TV channel and the Disney channel too. I mean why not? If they’re going to experiment with premium content why not go all the way.
Give me access to everything you produce, and I might actually consider paying $5/month to Internet + Internet TV. But don’t show me ads. And don’t try to bundle it together with my internet service. Give it to me opt-in. And for heaven’s sake, learn from Facebook’s mistakes and allow me to help shape the service contract/policy with you.
Thoughts?
(FYI, the American Cable Association ain’t too happy about ESPN360’s move. They claim it’ll cripple broadcast. Hmm)
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This is going to be fairly interesting to watch play out. I’m guessing that this doesn’t go through…mainly because it makes absolutely no sense from a business perspective. The internet isn’t based on a pay-per website subscription model. Any ISP that went that way would surely be annihilated by its competition if they made this move. Would have to be a unified move…which would be near impossible to pull off.