---
title: "Streaming Services: Sinking Ship Or Royalties Saviour?"
description: "Jeff Cooper is the Senior Partner of Step Change Marketing This article \nappears in Jeff's monthly column in AdNews – Australia's leading \npublication serving the advertising, marketing and media industries.\n\nI have a confession to make. When I was young and stupid (not to mention \nlight on doubloons) I used to pirate content like movies, music, games and \nTV shows. I’m not alone – us convicts lead the world in piracy. I read in \nsome recent and ‘very credible’ research that one third of adults admit to \npirating content online. That increases to 50% for those between 18 and 24 \nyears of age. I don’t believe those stats for a second – I’d bet they’re \nmuch higher!\n\n Thankfully, I’m now clean.  I’ve seen the light, the dull glow from my \nflat-screen TV, as Netflix auto-plays the fourth episode of Bloodline at \n11pm on a school night.\n\n I now have Netflix. Not because I watch much TV but because, for me, the \nvalue proposition has far surpassed pirating, free-to-air and AppleTV (and \nprobably many other on-demand alternatives). The point is content producers \nshould stop cursing pirates and start partnering with distribution channels \nthat are winning over the masses with their superior value propositions. \nAnd those distributors who are losing the battle should smarten up.\n\n At $8.49 a month, Netflix costs less than 30c a day for unlimited content \nacross all my devices. AppleTV is around $3 an episode (equivalent to 10 \ndays of viewing or 240 hours of Netflix gluttony). Free-to-air is full of \ncrap and ads, with the only half decent content being at the worst possible \ntimes. Pirating is a pain in the ass around quality and logistics… oh yeah, \nand it’s illegal.\n\n Spotify has a similar customer value proposition – one monthly fee and \nunlimited streaming.\n\n Now artists and content producers are saying that their share of revenue \nfrom these streaming services is too small, but it’s got to be better than \nthe zero they were getting from pirated distribution. I’m an artist, \ncreative person who makes money from my creativity/thinking, and I have a \nbusiness that does too, so I certainly value creativity. I’m also a \nrealist.\n\n These services have done something that other models have failed to do: \nthey have brought pirates back from their sea of filth and squalor, and \nthey’ve charged them for the pleasure. Many pirates are turning in their \neye-patches and peg legs, or choosing not to strap them on quite so often. \nFor me, that’s alchemy.\n\nTides are changing. New legislation has been passed that, for the first \ntime in Australia, will bring retribution to those that chose to break our \npiracy laws that until now have been impotent. This will further swell the \ntides in favour of streaming services.\n\n As always there is opportunity for those that move first. The weather \nforecast predicts rough seas and strong currents away from the traditional \ndistribution channels so the smart seamen would be setting a course for the \nlight."
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[![Step 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)](https://www.hellostepchange.com/)

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# Streaming Services: Sinking Ship Or Royalties Saviour?

[![](https://app.hubspot.com/settings/avatar/75476764b4a90ef5ea5be3e3760dc7dc) Step Change Marketing](https://blog.hellostepchange.com/blog/author/step-change-marketing) 19 May 2015 / 3 min read

- [Industry Insights](https://blog.hellostepchange.com/blog/topic/industry-insights)

Jeff Cooper is the Senior Partner of **Step Change Marketing** This article appears in Jeff's monthly column in **AdNews** – Australia's leading publication serving the advertising, marketing and media industries.

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**I have a confession to make.** When I was young and stupid (not to mention light on doubloons) I used to pirate content like movies, music, games and TV shows. I’m not alone – us convicts lead the world in piracy. I read in some recent and ‘very credible’ research that one third of adults admit to pirating content online. That increases to 50% for those between 18 and 24 years of age. I don’t believe those stats for a second – I’d bet they’re much higher!

 Thankfully, I’m now clean.  I’ve seen the light, the dull glow from my flat-screen TV, as Netflix auto-plays the fourth episode of Bloodline at 11pm on a school night.

 I now have Netflix. Not because I watch much TV but because, for me, the value proposition has far surpassed pirating, free-to-air and AppleTV (and probably many other on-demand alternatives). The point is content producers should stop cursing pirates and start partnering with distribution channels that are winning over the masses with their superior value propositions. And those distributors who are losing the battle should smarten up.

 At $8.49 a month, Netflix costs less than 30c a day for unlimited content across all my devices. AppleTV is around $3 an episode (equivalent to 10 days of viewing or 240 hours of Netflix gluttony). Free-to-air is full of crap and ads, with the only half decent content being at the worst possible times. Pirating is a pain in the ass around quality and logistics… oh yeah, and it’s illegal.

 Spotify has a similar customer value proposition – one monthly fee and unlimited streaming.

 Now artists and content producers are saying that their share of revenue from these streaming services is too small, but it’s got to be better than the zero they were getting from pirated distribution. I’m an artist, creative person who makes money from my creativity/thinking, and I have a business that does too, so I certainly value creativity. I’m also a realist.

 These services have done something that other models have failed to do: they have brought pirates back from their sea of filth and squalor, and they’ve charged them for the pleasure. Many pirates are turning in their eye-patches and peg legs, or choosing not to strap them on quite so often. For me, that’s alchemy.

Tides are changing. New legislation has been passed that, for the first time in Australia, will bring retribution to those that chose to break our piracy laws that until now have been impotent. This will further swell the tides in favour of streaming services.

 As always there is opportunity for those that move first. The weather forecast predicts rough seas and strong currents away from the traditional distribution channels so the smart seamen would be setting a course for the light.

 

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