Quote:
Originally Posted by MisterPeabody
The real issue here is we are at "cross purposes" when it comes to generating revenue. For tubes they have their own business model and it includes other revenue streams like ad space, cams and dating. In fact, it's those revenue streams that dominate.
But for paysite owners we're essentially selling ONLY paysite Memberships. Perhaps we're also promoting cams and dating or other products but our main focus is paysite memberships. This is not the #1 Priority for tube site owners.
So how do we find a good balance that feeds both business models? That's the challenge and some of the ideas in this thread are worth trying.
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The web entertainment industry as a whole is still so young. Therefore when I struggle understanding how a model, concept or relationship will/is working in this industry I look to the brick and mortar world for something similar and more mature to compare it to. The answers are usually there.
What comes to mind in this scenario is quite obvious. A tube site is a venue, a theater, a concert hall, a stage, field, ballpark, stadium etc. etc.
These places make a large portion of their money off of concessions, overpriced liquor, popcorn, beer, coke, hotdogs, parking, t-shirts etc. etc. To tubes these concessions are equivalent to ads, dating, cams, traffic and various other products.
The entertainer, actor, player, movie production company, theater production company, singer, etc. is paid well in most cases. I am not talking about local free performances or other outliers. I am talking about professional athletes, actors, singers, musicians and performers in real venues.
They are not commoditized because they bring a unique talent or product to the venue. A talent or product that the viewer or venue owner does not possess or have the ability to create easily but wants to watch or showcase.
The venue owner can not produce this product or talent because the resources are not all local to them and they do not have the broad expertise across the needed verticals to compete in all those markets in addition to competing as a venue in their own market. Tube sites are not GE.
The problem with tubes is obvious, the entertainment in the venue has been poorly treated and it is now becoming clear that they are a key input in the equation for success. In short their needs can longer be ignored and their products treated as commodities.
The solution is also as simple as the analogy. If I had a venue of any kind and failed to attract talent I would work on creating a more welcoming and profitable environment for the required performers.
If it was a sports environment I would build off the hook facilities, locker rooms, weight rooms and practice fields, I would do promotions to fill my stands and I would make sure the jerseys of my players were selling like hotcakes with a solid concessions plan.
Money is also important, however this solution works in both capped and uncapped environments. In other words you can get more talent then the other guy by using means then simply money. Money of curse helps.... a lot.
Is it really this simple? I truly think it is.
Opening the venue has lower barriers to entry then the creating the necessary content, however the venue has he audience waiting.
This will need to evolve for both to survive in the long run.