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1. Music collections of old
Way way back in the 70’s I remember riding around in a VW beetle. Maybe I’d be driving
with my dad or my uncle. Everybody seemed to own a VW! What everybody also had was a huge collection of 8-track taps in a big box. You’d dig through the box and find what you wanted to play, then pop in the tape. It was exciting because before 8-tracks you only had records, and you couldn’t play those in the car!
But even record collections were new in the 60’s. Before that, most music was consumed live or on the radio.
2. When books left the library
A similar trend followed for books and reading. Although newspapers have been sold by subscription for a lot longer, books were mostly consumed in libraries. But the consumer itch to build collections eventually built Barnes & Noble into a powerhouse brick and mortar store.
Internet disruption of that business model came too. Enter Amazon’s Kindle. Although you theoretically *buy* digital books, if you read the fine print you’ll see you actually rent them in perpetuity. In fact there have been cases where Amazon has reached into devices and removed previously purchased media.
Related: Why AirBNB didn’t have to fail
3. Managing collections (even stolen ones) is hard work
When you download music or movies, either from iTunes or god forbid grabbing it off of Bittorrent networks, you need to put it somewhere. You’ll store it on your laptop harddrive or if your collection is large enough, on some shared storage system at home. And you’ll also probably never back it up.
The thing is harddrives themselves have a life of about two to four years. As an operations guy I manage data everyday. Backups are a big part of that process, so when the media fails, you won’t lose the collection of movies & music you built lovingly over so many years.
Sadly most people learn the hard way. And when you learn this lesson you probably think, where did all that time go? What did I even *have* in my collection?
Also: Are SQL Databases Dead?
4. Why music & movie theft was just a blip on the historical radar
I’m also a bit of a Doctor Who fan. Since it’s a rather obscure British TV show (or was) I spent some time buying many of the old episodes on DVD. Or I *did* rather, until Netflix starting offering the whole classic collection on subscription. They did this with Star Trek too. Now I have no reason to fish through my shelves for a DVD. Why would I?
As users become more accustomed to the subscription model, they’re less likely to want to build a whole collection of media. This goes well for books, music & videos. Who would bother downloading off of Bittorrents, managing your home collection, and all that trouble when you can just subscribe. Easy. No mess!
5. Subscriptions, subscriptions everywhere!
Whether you managed a datacenter of physical servers in-house, or bought servers managed by a hosting company before the subscription model you had to worry about moving parts. You had to worry about failing harddrives, memory & all the rest.
Then along comes Amazon Web Services and it’s EC2 servers bringing the subscription model to hosting too. This raises the bar on the biggest failing component harddrives, but putting all data on EBS, their virtual storage network. All of this raises the bar for a lot of organizations and reduces the drudgery.
What spotify is doing with music, Netflix is doing for movies & tv shows, and kindle is doing for books. That same trend has brought great disruption to the internet & server hosing. Startups and consumers win big in this game.
Can you think of any businesses where a subscription model might work? They may be ripe for disruption by a new startup.
Check out: Why your startup is failing at Devops