Magazine and newspaper publishers are the primary users of the the subscription business model, where consumers pay a certain amount every month and in return, receive weekly or monthly copies. This lowers the risk for the company, as they know in advance that the people who have subscribed, are definitely going to purchase the latest issue, as they are bound by contract.
Due to the advantages that come with subscriptions for the companies, this business model is also generated in other areas, as for example ‘Netflix’, with a video-on-demand streaming offer, and ‘Spotify’, a music streaming service. These services are very popular, however subscribers criticise the low number of titles available for streaming (Online Athens, 2014). This is due to money and rights to content: They cannot license everything and at the same time keep their low prices (£6.99 a month) (Collinson, 2014).
Due to the success of Netflix and others, this concept was also picked up by publishers, as for example Mills & Boon, who specialise in romance novels. Here consumers can decide between an eBook, starting from £1.99 for one novel every month, and a paperback-book subscription, where they receive the latest physical copy of their favourite series by mail to a discounted price.
Due to the advantages that come with subscriptions for the companies, this business model is also generated in other areas, as for example ‘Netflix’, with a video-on-demand streaming offer, and ‘Spotify’, a music streaming service. These services are very popular, however subscribers criticise the low number of titles available for streaming (Online Athens, 2014). This is due to money and rights to content: They cannot license everything and at the same time keep their low prices (£6.99 a month) (Collinson, 2014).
Due to the success of Netflix and others, this concept was also picked up by publishers, as for example Mills & Boon, who specialise in romance novels. Here consumers can decide between an eBook, starting from £1.99 for one novel every month, and a paperback-book subscription, where they receive the latest physical copy of their favourite series by mail to a discounted price.
"EBook subscription is set to be one of the key trends of this year’s Frankfurt Book Fair" (Technology, 2014) and of course now Amazon also offers an eBook and audiobook subscription to their consumers, called ‘Kindle Unlimited’. Whoever signs up, has “unlimited access to over 6500,000 titles and thousands of audiobooks on any device for just £7.99 a month” (Amazon.co.uk, 2014). In addition, the first month is for free.
It appears that Amazon also struggles, just like Netflix, to get publishers to agree to the unlimited service. Even though Kindle Unlimited has some well- known titles by famous authors in their library, “the service does not include books from the ‘Big 5’ publishers Hachette, HarperCollins, Simon & Schuster, Macmillan, and Penguin Random House” (Bellstrom, 2014). This means that it, despite the large number of titles, consumers may struggle to find their favourite books. Moreover this service is not actually ‘unlimited’, because subscribers can only keep 10 books at a time on their device.
By missing titles from the most well-known publishers, the question might arise if eBook subscriptions offer the same quality content as you can find when buying books the traditional way. Especially because “presently, self-publish content represents 85% of the books available via the servicewhile also paying the monthly” (Technology, 2014). Furthermore the question arises whether it really is cheaper. If a consumer wants to read a book that can’t be found in the library, he or she has to purchase it outside of Kindle Unlimited, pay the regular price, while also paying the monthly fee for the subscription
Whether an eBook subscription is worth paying for monthly or not depends upon “how many books you tend to read a month, what types of books you read, and the devices for reading you have access to” (Klosowski, 2014).
Personally, I probably would not sign up for Kindle Unlimited or any other eBook subscription service, mainly because I don’t like being obligated by a contract. Moreover, also because I like browsing in bookstores and being able to decide whether I want an eBook or a physical copy. I dislike being constrained to an ereader. Furthermore I want access to trusted brands like Penguin and HarperCollins, because they very rarely disappoint me.
Despite the current issues as a business model eBook subscription is well suited to consumer consumption. This idea could become very powerful, especially if the ‘Big 5’ agree on a collaboration.
- 562 words
It appears that Amazon also struggles, just like Netflix, to get publishers to agree to the unlimited service. Even though Kindle Unlimited has some well- known titles by famous authors in their library, “the service does not include books from the ‘Big 5’ publishers Hachette, HarperCollins, Simon & Schuster, Macmillan, and Penguin Random House” (Bellstrom, 2014). This means that it, despite the large number of titles, consumers may struggle to find their favourite books. Moreover this service is not actually ‘unlimited’, because subscribers can only keep 10 books at a time on their device.
By missing titles from the most well-known publishers, the question might arise if eBook subscriptions offer the same quality content as you can find when buying books the traditional way. Especially because “presently, self-publish content represents 85% of the books available via the servicewhile also paying the monthly” (Technology, 2014). Furthermore the question arises whether it really is cheaper. If a consumer wants to read a book that can’t be found in the library, he or she has to purchase it outside of Kindle Unlimited, pay the regular price, while also paying the monthly fee for the subscription
Whether an eBook subscription is worth paying for monthly or not depends upon “how many books you tend to read a month, what types of books you read, and the devices for reading you have access to” (Klosowski, 2014).
Personally, I probably would not sign up for Kindle Unlimited or any other eBook subscription service, mainly because I don’t like being obligated by a contract. Moreover, also because I like browsing in bookstores and being able to decide whether I want an eBook or a physical copy. I dislike being constrained to an ereader. Furthermore I want access to trusted brands like Penguin and HarperCollins, because they very rarely disappoint me.
Despite the current issues as a business model eBook subscription is well suited to consumer consumption. This idea could become very powerful, especially if the ‘Big 5’ agree on a collaboration.
- 562 words
Bibliography
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Spotify for Artists, (2014); Spotify Explained; Available at: http://www.spotify.com/spotify-explained/; [Accessed 17 Oct. 2014]
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