How Much Does Free Cost?
Recently, there has been a buzz around the internet that Hulu.com would be going to a format where users would be charged for some content. This came with some concern and disappointment, because really, who wants to suddenly start paying for something that was free. You'll notice the major airlines pursued a similar strategy with everything from those tiny half-size bags of pretzels to even your luggage. While this might be fine as travel is a necessity for business, will people really buy content which they were used to getting for free?
Well, not to be outdone, there's a new movie clip service online and ready to compete with Hulu. Movieclips.com offers clips from thousands of different movies. Much like Hulu, it has some pretty big names backing it up. Six of the top Hollywood film companies are behind the site. This time they've got plans to turn a profit built in to the concept. The firm will get a finder's fee every time a user goes to the site and then follows through and rents or buys a film from Amazon.com or iTunes.
There is precedent for the idea of paying for something you can already receive for free. Just look at Sirius-XM Satellite Radio. Many refused to believe this idea would work for very long. 7 years after their founding (prior to their merger), the company is hanging on, barely. Only time will tell if satellite radio can find its way into more homes, cars, and other locations and help secure its existence well into the future.