Remember the days when you had to wait until your favorite movie came out on DVD? Remember when you had to wait for bestsellers to finally be published in your country in your own language? No, the manufacturer did not burn or print those books, DVDs or CDs on a single computer one-by-one. This is a typical case of windowing! Delaying or sequencing the introduction of the newest media was and is a strategic decision- and it seems to become of renewed interest for information goods, especially music and movies. But one step back, what is this “windowing”?
Academically: “Windowing—the process of managing the release sequence for content so as to maximize the returns from intellectual property rights (IPRs)—is changing because of transformations in the way that television is distributed and consumed.” (Doyle, 2016)
Too academic? then how about a practical approach: If you want to have access to new songs/albums/movies right when they are released on certain platforms, you have to pay. Only after an undetermined amount of time (“Patience is a virtue”), non-premium customers will eventually be able to access the same content.
Spotify, Tidal, Netflix etc. all provide us with low-cost access to information goods such as movies, series, music or any type of other media we want. Modern technology facilitates or enables the often illegal copying and distribution of these items. While all of the named platforms make money through advertising and different versions of accounts (free-basic-premium access), pricing and versioning models are getting old and especially music artists become increasingly frustrated about the (financial) valuation of their work. An illustration of this frustration went through the media in early 2016, when Adele and Taylor Swift among other artist’s work were not available on Spotify upon new release (TheChordist, 2016). Yes, I know, you might not be a fan of either but still: a popular artist or producer withdrawing the permission to provide content can have a powerful impact in today’s world where everything is a mouse-click away. Surely, actions like these are not only caused by IPR (protection) issues but also financially motivated. Without a doubt, the tone and dynamics with regard to goods in the entertainment industry are changing. Again in academic language: the newest developments have “necessitated new thinking about how best to organize the sequential roll out of content so as to build audience demand, avoid overlaps, and maximize returns”. (Doyle, 2016) or in translation: The decision of when, where and for how much money should entertainment media be offered needs revising for multiple reasons.
While windowing is not new it might just be the revived trend for pricing and product offering. According to Sony Entertainment CEO Michael Lynton “Going forward, you will see some version of windowing in the music industry,” (Billboard, 2016) predicting a growing trend towards new pricing models for streaming platforms in general. Spotify on the other hand contests this claim, arguing that “exclusives get in the way of that for both sides*” (* musician and customer) (TheVerge, 2016).
From my point of view, the increasing amount of disputes indicates that pricing information goods in the streaming industry is becoming increasingly difficult. And I believe that windowing is almost certain to be introduced extensively in the foreseeable future; not only for music but also for example, Netflix series. What do you as a (potential) customer think?
- Will windowing be introduced extensively across the streaming industry?
- (How much) Would you be willing to for an early access to certain music or series?
Sources:
Billboard.com http://www.billboard.com/articles/business/6882769/sony-entertainment-chief-streaming-windowing-spotify-response 21.09.2016
Doyle, G. (2016). Digitization and Changing Windowing Strategies in the Television Industry Negotiating New Windows on the World. Television & NewMedia. Sage
The Chordist https://thetrichordist.com/2016/05/16/windowing-works-9-of-the-top-13-uk-albums-not-on-spotify/ 21.09.2016
TheVerge http://www.theverge.com/2016/2/18/11054460/spotify-exclusive-content-apple-tidal last accessed, 21.09.2016
Cover picture: Fastweb.com (2016) http://www.fastweb.com/student-life/articles/keep-calm-and-wait-for-college-admissions-decisions. A MONSTER company. Last accessed 21.09.2016
