Online Video vs. Music ? Different Game, Same Rules

Netflix ? the poster child for premium Internet video services ? was birthed by iTunes and other online music services before it. Yes, movies and music are fundamentally different forms of media. Apart from the obvious, in the online world, music tracks can be unbundled from albums (movies can?t), and the number of movies produced in any given year represents a small fraction of the total volume of recorded music (and these differences directly impact business models). Nevertheless, despite these differences, three ingredients that have proven to be essential for the success of any online music service apply equally to the premium online video world. This trilogy represents the ?Sacred Tenets of Online Media? that apply to any service provider. Apple was the first to get it right in the online music world with iTunes. Who will first get it right at massive scale for online video? Netflix may have the lead, but the game is still early. So, game on.

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