Unlimited words With Kindle, Amazon is challenging the book trade. But the question of financing the creation is still not resolved … By
In announcing the launch of an offering called Kindle Unlimited offering unlimited access to a catalog of 600,000 titles for less than 10 euros per month, Amazon does not just throw a huge challenge to all current book trade. It confirms the evolution of the ecosystem outlined by Netflix and the issues it raises content. Whether it’s video, music or text, the model of unlimited access subscription is doing oil slick, imposing a profound renewal of the entire economy of the content. While many critics are speaking out against this development, yet it is both inevitable and potentially positive.
First, it should be noted that the “plateformisation” cultural goods responds to changes in consumer behavior: whether delinearization, in the case of the video, or read the card, in the books, demand is characterized by a desire to control the entire time, place and product consumed, and at a low price or less accessible. This involves the ability of broadcasters to offer a range of increasingly large and constantly on all possible media.
The unknown funding the creation
This mutation consumption that meet the platforms dynamite subscription traditional economic equilibrium: for creators and providers participating directly in the creation – be they authors or technical assistance to companies filming – the development of a dominant marketing through not by selling any immediate action, but by inclusion in a catalog available on subscription will be a major event
mode.
The financing of creation is already become the main unknown of the future ecosystem. In the case of free audiovisual offer, it is clear that, faced with reducing their ad revenues, traditional broadcasters will not be able to maintain their pre-financing. They will conduct more than targeted funding for beaches with a large audience. For the rest of the grid, they will simply make available “pipe diffusion” to the already funded, by practicing such sharing additional advertising revenues in partnership with advertisers and producers.
Deleting intermediate
In the case of paying, the pattern of distribution of value is to fully rebuild. While a Netflix has made it clear it would not participate in the French system – but that it would produce its own fictions with its proven from House of Cards methods – Two points can be made. On the one hand hyper ecosystem protected French cultural products will be blasted: with the expected mass defection of consumers now choosing to read or watch on subscription instead of buying the act, the conventional system will collapse under its own weight for lack of revenue.
On the other hand, and this is reassuring, it is clear that new platforms are conscious of the need for attractive content. One way or another, new ways of financing the creation will thus emerge. We can thus expect a change in how the value is allocated within the sector. And it will probably be advisable if we think of the case of the book, how to understand such a book sold 20 euros in euro bookstore reports only to the author? By offering authors to edit directly and refund 100% of their proceeds, Amazon announced a deal in which the property will be both cheaper and more profitable for rights holders, through the elimination of intermediaries – sorry them.
Audiovisual must react
In broadcasting, the problem will be more acute that it will be difficult to avoid an increase in asymmetric relations between downstream and upstream of the creative industry. Like any situation of extreme concentration, the risk would be that the actor placed in a strong position exploits its market power to impose other unconscionable conditions -. Example unusually low compensation for rights holders
Given what constitutes a complete makeover of its ecosystem, the industry image should, from the beginning of September, make a concerted effort by all stakeholders to refine its new business model, otherwise it emerge only at the risk of being particularly unbalanced.
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