Video websites such as Hulu and Youtube have been losing quality and money by posting too much free material. What is a possible suggestion to help this situation? Compare it to something in television. (pages 327-328)
One thing that could be done is to limit the free content on websites. Only let audiences access a certain amount of free content, and then start charging them. Either allow them to watch the first five episodes of a show for free, and then charge a few bucks an episode or allow them a few month free trial period and then charge them for access. Another thing that can be done is have a whole section of videos that are free, and then another section (maybe more exclusive videos) that have to be paid to watch. Either way the audience is pulled in by the limited free videos, and then will have the urge to pay to see what they're missing out on.
An example in television would be HBO and pay per view. There are networks that air movies but most of them have commercials, less variety, and they only air once in a very long time. With pay per view, you can choose the movies/events that you want without commercials, and watch them whenever you want for a fee. HBO has a wide variety of programs and movies that aren't always available on other networks, plus you get them without any commercials. You can have access to this channel for extra money on your cable bill.
http://articles.latimes.com/2010/jan/21/business/la-fi-ct-newhulu21-2010jan21
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