> You will find very quickly how reluctant people are to pay for anything despite a few cultural-phenomenon-level exceptions like Netflix.
That's absolutely not true, though. People buy stuff all the time. Clothing, shoes, sporting goods, dishes, food, housewares, books, DVDs, etc.
The "freemium" approach Spotify takes is a poor example because they're not charging for their real service of music streaming, but instead to get rid of advertisements. They've moved their own goalposts, and the question isn't "Is streaming music worth $10 a month?" but "Is it worth $10 a month to get rid of this commercial?" If the options were "Pay $10 to stream music" or "Listen to nothing," the results might be a lot different.
> One common response to this is "well, maybe everyone should be hobbyists again making content for free," but surely we can find a better middleground than structuring things such that we depend on people toiling away in their freetime to produce the content we happen to want. For example, I'd rather my favorite content providers be able to feed themselves working on this content. We both benefit: I get to enjoy more content. Depending on hobby work doesn't get us there.
I'm not making that argument, and you're setting up a false dichotomy. There's no reason content creators need to use advertisements and can't charge for their content instead. It worked fine for music and movies for over a hundred years, and books have been using that model for hundreds of years before that.
I think the world of consumption has changed though. People expect things (music, games, etc) to be free and balk at paying for them. Why would they when there is likely someone offering something comparable for free but supported by ads?
Maybe you could ship them a real item as part of the service somehow
I'd never pay $10 for a character in a game, but I'd happily pay $15 for a plastic toy that coincidentally unlocks something in a game I was enjoying anyway
That's not what Spotify is doing. The choice is pay us cash or pay us with your attention by watching ads.
Why go to work, earn cash with your attention, and pay for Spotify when you can directly monetize your attention on-demand in real-time at the rate you consume? That's what advertising allows.
That's a very good observation. I think it's true that having the free option changes the context very much.
There are people who pay for paid password managers when free alternative products available. I myself pay for a number of services (very reasonably priced) when I could have used free alternatives. The difference is the guys I pay don't offer a free edition without ads and nonsense like that. They just build a great software and ask to pay for their effort.
It's not just removing advertisements. Spotify Premium lets you listen to any song they have anytime you want. I thought the free version only let you listen to their pregenerated stations?
That's absolutely not true, though. People buy stuff all the time. Clothing, shoes, sporting goods, dishes, food, housewares, books, DVDs, etc.
The "freemium" approach Spotify takes is a poor example because they're not charging for their real service of music streaming, but instead to get rid of advertisements. They've moved their own goalposts, and the question isn't "Is streaming music worth $10 a month?" but "Is it worth $10 a month to get rid of this commercial?" If the options were "Pay $10 to stream music" or "Listen to nothing," the results might be a lot different.
> One common response to this is "well, maybe everyone should be hobbyists again making content for free," but surely we can find a better middleground than structuring things such that we depend on people toiling away in their freetime to produce the content we happen to want. For example, I'd rather my favorite content providers be able to feed themselves working on this content. We both benefit: I get to enjoy more content. Depending on hobby work doesn't get us there.
I'm not making that argument, and you're setting up a false dichotomy. There's no reason content creators need to use advertisements and can't charge for their content instead. It worked fine for music and movies for over a hundred years, and books have been using that model for hundreds of years before that.