Author Topic: Why does music streaming cost more than Netflix?  (Read 2935 times)

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Offline LilDrunkenSmurf

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Why does music streaming cost more than Netflix?
« on: October 28, 2014, 07:19:54 AM »
Netflix Canada -  $7.99/month (grandfathered rate, I believe the new one is $9.99/month)
Spotify Canada -  $9.99/month
Google Music - $9.99/month
rdio - $9.99/month
Sirius Select - $15.99/month
Sirius Select + - $19.99/month
Sirius All Access - $21.99/month

Yes, I get that Netflix raised it's rates, but I would expect a TV/Movie streaming service to cost more than a music streaming service. Is it just straight up licensing costs? Are TV shows that much cheaper to license? And why is SiriusXM so damn expensive?
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Offline Tenacious_B

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Re: Why does music streaming cost more than Netflix?
« Reply #1 on: October 28, 2014, 08:05:25 AM »
People still listen to music?

I assume its economies of scale.  While I have no data to back this up (too lazy to google), I would imagine that Netflix has a bigger user base than Sirius?

Also, I bet having a satellite in orbit is probably expensive.
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Offline kijho

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Re: Why does music streaming cost more than Netflix?
« Reply #2 on: October 28, 2014, 08:13:02 AM »
My Sirius is only $16.99/mo and has 160 channels unlimited.. :s Maybe it's grandfathered from 2 years ago or something..

Offline jsn

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Re: Why does music streaming cost more than Netflix?
« Reply #3 on: October 28, 2014, 09:13:04 AM »
I use google play music every day whereas netflixx I only use occasionally.  I stream music off of google play music every day on transit so it's definitely more worth it for me.  I cancelled netflixx because I rarely used it so even at 8 dollars a month, it wasn't justified for me.  Even for 10 dollars a month, google is worth it simply because I use it daily.  Not sure if that's relavent or not, but that's my justification anyways.

Offline ultimatt

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Re: Why does music streaming cost more than Netflix?
« Reply #4 on: October 28, 2014, 10:26:15 AM »
Is it just straight up licensing costs? Are TV shows that much cheaper to license?

This would be my guess. Fewer places make TV shows than make music, so it's probably easier to get a 'volume discount' on TV shows.
Also, the number of users probably places a roll.

I think most TV shows are still ad-driven, so if netflix can bring in a new audience to the current season, that benefits the studio too. More eyes on stuff the better in that case I'd think.
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Offline Way_Gone

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Re: Why does music streaming cost more than Netflix?
« Reply #5 on: October 28, 2014, 10:35:22 AM »
Mainly because Netflix only has to cover the cost of licensing and server space.

SiriusXM on the other hand has a lot more operational cost to cover. The real answer is that it's cheaper to stream data via the internet than it is to stream data via satellite. People have been saying that satellite radio is dying (and it has been) for years. I'm actually amazed at how many people still pay $15-20/month for itshay quality satellite streamed music. When there are literally dozens of cheaper/free internet streaming services that offer better quality and less repetitive content.

Me being an ex-subscriber to Sirius I was really disappointed with their whole premise: a bazillion channels, un-ending content and ad free... Like most people, I only listened to.. maybe 10 different channels and unfortunately within those 10 channels, they became incredibly repetitive. Also, the whole advertisement free premise is a total joke, there are more ads on Sirius than there are on FM radio (although they promote this concept less, it is still one of their 'features'- https://listenercare.siriusxm.com/app/answers/detail/a_id/3562/~/will-i-hear-commercials-on-siriusxm%3F). The idea was: you pay for it, so there aren't any commercials. But as any subscriber knows, Sirius commercials are 10 times more annoying than any ad I have heard on FM.
And yes, Sirius features exclusive content and now has internet streaming... Still though, for "all access" it's $22 a month

I'm perfectly happy to browse Soundcloud for $0/ever.



Didn't intend for that to get so... ranty.

Offline Canuckrz

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Re: Why does music streaming cost more than Netflix?
« Reply #6 on: October 28, 2014, 11:18:29 AM »
I'm going to make a mostly lazy and uneducated guess and say its the RIAA's fault somehow.

Offline snackers

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Re: Why does music streaming cost more than Netflix?
« Reply #7 on: October 28, 2014, 11:31:23 AM »
weather

With education comes the understanding that people's talent is worth money in a money driven world.

Offline LilDrunkenSmurf

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Re: Why does music streaming cost more than Netflix?
« Reply #8 on: October 28, 2014, 11:44:48 AM »
i dont understand why people pay for music any more, why make the rich richer ? weather that meant buying a podcast or buying a stream or buying individual tracks   

The way I look at it, I'm all for supporting content producers. It's why I have no issues paying for songs I like, or movies I like, as long as it's not ridiculously hard to get to.

I like Louis CK's method. He put his performance (video/audio) on his site. Said if you want to torrent it, torrent it, but he paid for the recording/site/etc out of his own pocket, not via some production company, and if you want to pay him the $5 for a DRM-free copy off his site, he'd appreciate it. I bought every performance he's ever done.

If I really enjoy a movie, I'll buy a ticket/physical/digital copy. If it's stupid hard to get a copy, and I can torrent it, I'll do that. I have no issues giving money to the people who _create_ the content. I'm not a fan of paying the distributor, unless it's easy to access, and reasonably priced.
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Offline Canuckrz

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Re: Why does music streaming cost more than Netflix?
« Reply #9 on: October 28, 2014, 11:59:44 AM »
^This is the same ideology I go by as well. I own several CD's and movies that are still new in wrapper that I purchased after listening/watching it online. I still generally watch the digital version of it that I originally "aquired" but went out of my way to buy the physical copy as well.

You don't fight piracy, you offer a more compelling service/experience to it so people will want to buy the product.

Offline LilDrunkenSmurf

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Re: Why does music streaming cost more than Netflix?
« Reply #10 on: October 28, 2014, 01:08:14 PM »
^This is the same ideology I go by as well. I own several CD's and movies that are still new in wrapper that I purchased after listening/watching it online. I still generally watch the digital version of it that I originally "aquired" but went out of my way to buy the physical copy as well.

You don't fight piracy, you offer a more compelling service/experience to it so people will want to buy the product.

Exactly.

That being said, I still don't want to pay more than my (grandfathered) rate for Netflix, to get streaming music from Spotify.
If the sea was vodka, and I was a duck.
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But the sea isn't vodka, and I'm not a duck.
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Offline Canuckrz

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Re: Why does music streaming cost more than Netflix?
« Reply #11 on: October 28, 2014, 01:43:02 PM »
Which is why I go back to lazily blaming the RIAA for the pricing, as its probably their fault somehow like with most other things in the music industry. I just can't be bothered to figure out how its their fault in this instance.

Offline Claw

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Re: Why does music streaming cost more than Netflix?
« Reply #12 on: October 28, 2014, 07:18:44 PM »
Which is why I go back to lazily blaming the RIAA and Metallica for the pricing...

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Offline Rich

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Re: Why does music streaming cost more than Netflix?
« Reply #13 on: October 28, 2014, 07:28:51 PM »
Did Sirius XM launch their own satellites?  Or are they piggy backing on existing ones? 

If they did launch their own satellites, I'd imagine that in itself would be a huge cost.  Netflix on the other hand didn't have to lay down any lines to get their service working.
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Offline ultimatt

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Offline silent

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Re: Why does music streaming cost more than Netflix?
« Reply #15 on: November 09, 2014, 02:47:44 PM »
Many of the channels on Sirius have hosts/shows who are paid.  These hosts bring in subscribers, so it's generally a benefit to have them on there.  I wouldn't get Sirius if it weren't for Sway in the Morning (thanks for the tip Wally!) or a few of the other shows.

You can also haggle down from the price Sirius charges, I'm currently on a 1 year/$85 contract with them.

Edit:  Matt, that's a very true and interesting graph.  With that said, without the proliferation of "free" music all over the place helping people get known, how many DJs would be able to charge up to $250,000 for a 2 hour set?

Offline syche

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Re: Why does music streaming cost more than Netflix?
« Reply #16 on: November 19, 2014, 04:42:50 PM »
Meh, I support the artists I like.

That being said I am on the grandfathered Google Music and Netflix but if that ever changed I would drop it

As for XM i dont know why it was so expensive ( might have changed referring to my expereince in 2009 )
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Offline Roadwarrior

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Re: Why does music streaming cost more than Netflix?
« Reply #17 on: November 21, 2014, 09:03:41 AM »
I don't know if im correct, but I also feel like it may have to do with the amount of songs you can listen to vs the numbers of shows you can watch in say a 1 hour period. Id guess there are a lot more CD's out there that would need to be licensed, than TV shows or movies.
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Offline syche

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Re: Why does music streaming cost more than Netflix?
« Reply #18 on: November 21, 2014, 04:34:06 PM »
Did Sirius XM launch their own satellites?  Or are they piggy backing on existing ones? 

If they did launch their own satellites, I'd imagine that in itself would be a huge cost.  Netflix on the other hand didn't have to lay down any lines to get their service working.

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