I was having a conversation with some co-workers about business models and the like when we came onto the topic of Spotify. I’m a big, big, huge, big fan of Spotify. Think it’s a great service. And if Apple ever allows their iPhone app to go onto the app store I’ll probably sign up for a premium account. The guys I was talking to weren’t sold that the business model was sustainable. One of the people I was talking to kept on about “You don’t own it”. That got me thinking, how important is ownership?
I believe it’s not always that important. Case in point, Clancy mentioned Digable Planets on twitter. A click onto Spotify and I’m listening to the Rebirth of Slick (cool like dat). Now I might have the CD somewhere. I might have the mp3 on my PC at home. Maybe. Can’t remember downloading it or buying it, but I might have it. But, I don’t care. With something like Spotify I open it up and I’m listening to the tracks.
The point is whether or not you own its the experience (specifically convenience and access in this case) is what matters. Can I listen to it wherever I am, can I listen in my car, on the train, even underground (which the Spotify mobile app seems to do quite well), yes I can. So I’ll subscribe because owning is not that important to me. The experience is.
You don’t own television programmes but Hulu, TiVO, Sky+ whatever allows you to store and experience it. You don’t own the movies on “Netflix Watch Instantly” but you can stream it and watch instantly. Media content is supported by ads (contextual or otherwise), so you don’t have to buy it or own it, you just want to experience it.
Books are closely moving into this as well. Although libraries have been following this model for a while, you can take the book, read it and give it back. I like owning books, I own a lot, but I also love picking up a book from my school library. I don’t need to own every book I read. Who knows maybe if the Kindle really is a great experience (when it’s available where I live I’ll give it a shot) I might change my behaviour with books as well.
I look at this as a ownership v experience relationship. Where some goods I need to own to really experience and some goods I don’t need to own to experience. I’ve drawn it out in the following 2×2 matrix where you have high and low ownership needs related to high and low experienced needs.
2 x 2 matrix, ownership versus experience
Examples of ownership experience relationship
The point is that knowing where a good or service falls on this 2×2 will help you identify how to market, price, and sell the good or service. Knowing when ownership is important or when experience is important and when they’re both important will help you focus and succeed. Also being aware of where you fall might help you figure out where to invest, whether in costs / margins, partnerships, the product experience or something else to make users value your product more.
