Quotulatiousness

November 3, 2024

The end of the “cheap streaming era” is at hand

Filed under: Business, Media, USA — Tags: , , — Nicholas @ 05:00

Ted Gioia explains why your streaming services are going to be jacking up their prices — if they haven’t already done so:

I got a request to explain why streaming subscription prices are so damned high — and getting higher.

This came in response to a chart I shared two days ago:

And it’s not just Disney.

All the streaming platforms are jacking up prices. I still subscribe to five different streaming services—down from six previously. Every one of them raised prices this year, and always by more than the inflation rate.

Here’s what Spotify is doing:

What’s going on? And will it continue?

I recently described this as an “endgame strategy” — but that might be confusing to readers.

Endgame is a term drawn from chess, where it refers to a body of wisdom about the final moves on the board. But business is like chess, so I frequently analyzed endgame situations back in my days at the Boston Consulting Group and McKinsey.

I now see these endgame strategies getting implemented in various media, entertainment, and streaming businesses. But almost nobody inside those businesses wants to talk about it.

So let me lay it out for you.

The Entertainment Industry Is Adopting an Endgame Mindset

You pursue an “endgame” strategy when demand for your business hits a wall, and it’s hard to attract new customers. The most typical endgame strategy is to cut back investment into new products and services, while raising prices sharply.

You’re willing to accept some loss of customers, because you’re now squeezing more profit-per-user out of your remaining consumers — who stick with you out of loyalty or habit or inertia.

These are your sheep, ready to be shorn.

Profit per customer is now the key metric driving your business. It’s more important than innovation or growth or artistry or any of those old fashioned ideas.

That’s why, for example, Netflix won’t share data on the number of subscribers anymore. They claim this is no longer relevant to their business model — and they aren’t lying.

Price increases are now the engine of their business.

Unholy Alliance topples Saxony – Rise of Hitler 05, May 1930

World War Two
Published 2 Nov 2024

May 1930 brings political upheaval to the Weimar Republic, with the French deciding to leave the Rhineland, violent clashes between Communists and Nazis, and a surprising alliance that dissolves Saxony’s government. See how these events unfold and shape Germany’s current political landscape.
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Kemi Badenoch replaces Rishi Sunak as UK Conservative leader

In the National Post, Michael Murphy discusses the new British Tory leader and why she could be a viable challenger to Two-tier Keir’s Labour government:

… in July, the Tories were ousted by Labour after 14 years in power, limping on with only 121 seats in the 650 seat House of Commons. But the honeymoon period for Sir Keir Starmer’s Labour government ended almost immediately, as its popularity plummeted faster than that of any administration in recent memory. This has made the Tories interesting once again at precisely the moment when they’ve chosen a new leader: Kemi Badenoch.

The Nigerian-raised mother of three, elected today to lead the Conservative party, threatens to be kryptonite for a Labour party wedded to identity politics. A black, female immigrant at the dispatch box is apt to leave Labour frontbenchers — particularly Sir Keir, a one-time BLM kneeler — somewhat stumped. To make matters worse, Badenoch is a persuasive speaker, commanding a charisma and eloquence that Sir Keir — a dull, po-faced lawyer — does not possess.

These qualities have given Badenoch cross-party appeal within the Tories, rallying endorsements from both the left and right. By endorsing her, however, the party has effectively signed a blank cheque, as Badenoch, unlike her opponents, has made few specific pledges. She has chosen instead to reflect on the election loss and the party’s ideological roots; she is prepared to play the long game, hoping this will allow the Tories to “earn back trust”.

On some issues, though, Badenoch is clear. “The government is doing far too much and it is not doing any of it well — and it is growing and growing,” she declared recently. “The state is too big; we need to make sure there is more personal responsibility.” These ideas are common fare among Conservatives, especially in bloated welfare states like Britain — but her zeal for them evokes, for many, memories of Margaret Thatcher. As the political commentator Simon Heffer wrote, “Mrs Badenoch is the politician who most reminds me of Mrs Thatcher since I last saw Mrs Thatcher”. He noted both women’s hard-mindedness, “deep principles”, and grasp of the “art of the possible”.

Badenoch’s Conservatism can be traced, as the writer Tom Mctague has argued elsewhere, to her beginnings in Africa. Having fled Nigeria during a 1996 military coup, she has a keen, outsider’s appreciation for Britain’s core ideals — not least the rule of law and policing by consent. She is therefore a champion of Britain, of both “the good” and “bad” of its former empire, at a time when it is fashionable to denigrate it, precisely because of her first hand experience that these norms are rare and fragile.

Like Thatcher, Badenoch studied a hard science (computing), marking them out in a Parliament filled with lawyers and humanities graduates. And the swift rise of both women, from modest beginnings through the ranks of the Conservative party, suggests that the “art of the possible” is indeed etched into their stars.

The Armchair General has a few suggestions for Badenoch’s agenda to turn the British economy around:

The new leader of the Conservative Party (image: www.kemibadenoch.org.uk)

My one reservation [about Badenoch] was that, being a software engineer, instead of espousing liberty or slashing laws and regulations, Kemi might reach for more tinkering technocratic solutions — and your humble General is surely not alone in his opinion that we have had quite enough, thank you, of technocratic governments.

However, the more that I consider the severe problems that afflict this country, the more I believe that a process-driven leader, who can focus on the details, might make the biggest difference in the short to medium term.

The immigration issue

As we know, uncontrolled immigration has seized the public imagination greatly — and, indeed, Jenrick centred his campaign around leaving the European Convention on Human Rights (ECHR). We should almost certainly do this anyway — simply because, like the Americans, we should refuse to sign any treaties that raises foreign courts above our own Parliament.

But leaving that aside, the stated problems with mass immigration can largely be divided into two halves:

  • cultural differences — these are not insignificant, and it is claimed that they lead to an increase in crime (especially sexual crimes) and an undermining of our high-trust society;
  • economic issues — the evidence shows that a massive net influx of low-skilled immigrants depresses wages at the lower end, puts a strain on public services (which cannot expand swiftly enough to accommodate the increase in demand), raises the demand for houses (of which there is a shortage) and thus pushes up prices, and, ultimately, only increases nominal GDP whilst per capita GDP has barely shifted in a decade and a half.

For the purposes of this post, I shall address only the latter issue; given where we are right now, the former is a much thornier problem — at least politically — and probably cannot be solved without radical (and some might say “authoritarian”) action.

The second problem is easier to solve because it is caused, essentially, by the single biggest drag on our economy — our planning system.

[…]

Planning: the Conservatives’ political agenda

The core of the new Conservative manifesto must be a growth agenda; it needs to set out the following core principles:

  1. if we carry on the current trajectory, the British government will be effectively bankrupt in the next 50 years — so something needs to change;
  2. therefore, in order to pay for all the goodies that we have promised ourselves (now and in the future), we need to massively accelerate economic growth;
  3. unless we can build the roads, railways, power stations, research labs, data centres, and homes that we need, then our economy will not grow at the required rate — and spending will need to be cut to the bone;
  4. given the above, the only way to grow is to reform planning laws;
  5. removing the barriers to building will lead to greater investment, lower energy prices (leading to even greater investment), greater social mobility, regeneration of all the regions (so-called “levelling up”), and vast increases in per capita GDP;
  6. where the state invests in infrastructure, then it will cost considerably less than it does currently — meaning that not only will those projects undertaken provide more value for money, but also that many more projects will be viable;
  7. this prosperity and increased mobility will remove even the perceived need for immigrants to perform low-wage jobs (including in our public services), and remove the economic pressures of those that we have already taken in;1
  8. if we do it right, then we will also be able to cut taxes without drastically cutting the size of the state.2

The argument needs to be as stark and inevitable as that.

What this means is that the Conservatives need not stand on a platform of slashing state spending — thus addressing the huge numbers of people in this country who, incredibly, still believe in the benevolent state.

Except for one caveat, there really is no downside to adopting Foundations [discussed here], in full, as the core of the next Conservative manifesto (although it should not be the full extent of said manifesto — there are many other areas that need to be addressed, which I shall write about later).


    1. As I say, the cultural issues are for another time.

    2. Obviously, as a classical liberal, I believe that the size of the state should be drastically cut — but this is not a popular argument in a country that has been raised and educated on socialist doctrine for decades.

Ancient Sparta Historian Breaks Down 300 Movie | Deep Dives

Filed under: Greece, History, Media — Tags: , , , , — Nicholas @ 02:00

History Hit
Published Jul 8, 2024

Ancient Greek historian Roel Konijnendijk takes a deep dive into the historical accuracy of one of the most iconic and ridiculous depictions of the Spartans – 300 (2006).

00:00 Introduction
00:33 Spartan Society and Customs
02:34 Xerxes’ Messenger
06:56 The Ephors, the Oracle and the Carneia
10:30 The 300
15:39 The Persian Fleet
16:14 Thermopylae, the “Hot Gates”
17:17 Spartan Battle Technique
19:12 The Persian Army
24:42 Xerxes
28:28 Ephialtes
32:01 Dilios – Why Did the Spartans Stay?
34:18 The Final Stand
38:44 Aftermath of Thermopylae and Delios
40:53 Movie Quotes: Fact or Fiction?
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QotD: Minutemen

Filed under: Government, Liberty, Politics, Quotations, USA — Tags: , , , — Nicholas @ 01:00

Ten years ago, America’s right-wing paramilitaries were so anti-government, they thought that driver’s licenses were an unbearable infringement on their liberties. Now they’re out on the border HELPING THE FEDS ENFORCE THEIR REGULATIONS. What the hell’s up with that?

Granted, there’s not necessarily much overlap between the two groups. But one has supplanted the other in the mass media, the public imagination, and the affection of the right-wing radio hosts — and so help me, I think I miss the days when I felt a certain kinship with the crazies.

Jesse Walker, “More ’90s Nostalgia”, Hit and Run, 2005-07-28.

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