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Piracy And The Rise Of Subscription Services: Are They Worth It?

By Frugaling 4 Comments

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Spotify Premium Subscription Service
Screenshot of Spotify, a popular music subscription service

Problematic piracy, answered by private corporations

Subscription services have become a popular way to access media content ranging from books, magazines, television, and films. Before analyzing what subscriptions might be worth your time and money, I wanted to give a little historical context for their popularity. For many content creators, the rise in subscription services was scary, as they were linked to declining revenue growth. But increased interest in subscription models was actually an answer to something that’s been seen as even more malicious by copyright holders: piracy.

In France, if you were caught pirating digital (i.e., downloading a film, book, magazine, etc. without consent from the copyright holder) material three times, the 2009 HADOPI law (French acronym for the policy) would restrict your access to the Internet. Suspension of Internet services, depending on the level of piracy, would vary from 2 months to one year. Opposition groups argued and protested the law, arguing that it restricts a human right to knowledge.

In recent years, France curtailed the targeting of individuals’ copyright infringements, in favor of prosecuting major corporations and hosts of pirated materials. Today, TorrentFreak, a popular news source about pirating, reported that the organization now had five years of data to share. HADOPI has given warnings to 3,249,481 people, which suggests that about 9% of French Internet users are participating in possible copyright infringement (French report, PDF). That’s a staggering number, and it’s likely greater because some people can circumvent basic detection of copyright infringement.

Anti-piracy groups like the Motion Picture Association of America (MPAA) have lobbied for greater Internet restrictions for infringers in the U.S. and around the world. The MPAA has suggested that if piracy were “properly” dealt with, revenue to the film industry would subsequently increase (researchers and scholars at the London School of Economics have suggested otherwise). It’s no surprise that the trade organization for content creators would like more control over copyright concerns. But the answer to their calls for action actually came from private companies starting subscription services.

What do subscription services offer?

They usually provide a simple, monthly fee that gives users access to everything. It’s like an all-you-can-eat buffet for digital content. Subscription services offer somewhat ancillary but important benefits to copyright holders and consumers, too: they manage and lessen the cost to enjoy content. It even attracts those who would otherwise be pirating content! Effectively, as Kevin Spacey suggested, when users are given an affordable product and given complete control over when they’d like to listen, watch, and read, piracy will naturally decline.

In this article, I wanted to analyze three popular subscription services: Amazon Kindle Unlimited, Netflix, and Spotify. Each offers a different selection of content and unlimited access for a fee.

If you join Netflix’s subscription service, you’ll gain access to thousands upon thousands of movies that can be instantly viewed. Similarly, Spotify provides “premium” users access to millions of songs, playlists, and radio without ads. Amazon Kindle Unlimited is the newest platform and offers frequent readers access to a tremendous library of ebooks for Kindle (or Kindle apps).

Should you pay for a subscription service?

I’m not going to answer that, as everyone’s preferences are different. Instead, I want to provide you with some straightforward questions to consider before purchasing any service.

  1. How much does it cost?
  2. Are there any student discounts and/or free trials?
  3. Can I share my account with other people? Could I split the cost with someone?
  4. How much will you use the service?
  5. Are there other ways to get the content without the cost?

Amazon Kindle Unlimited (Link)

  • Cost: $9.99 per month
  • Access: 600,000 books
  • Student discounts and/or free trials: No student discounts. Yes, there is a 30-day free trial.
  • Sharing: There are no reports that you can share this subscription.
  • Usage: Are you reading all the time and traveling a lot? Then this really stands out as one of the best subscription services.
  • Review: It’s by far the greatest collection of books in an unlimited, checkout service. By paying for the subscription fee you also get unlimited audiobook listening, too. If you are reading and then hop in your car, you can continue the story at exactly the point you left it! That’s a pretty incredible benefit if you frequently travel. One caution: there’s no information about how many books you can checkout at once. My guess is it functions on a one-at-a-time checkout basis — meaning you’ll need to “return” the ebook before you can get another one.
  • Other ways: Libraries are free and increasingly offering ebooks for electronic checkout.

Netflix

  • Cost: $7.99 per month
  • Access: Netflix doesn’t publicly list all the films, but a popular site that catalogues the digital store says there are over 10,000 titles.
  • Student discounts and/or free trials: No student discounts. Yes, there is a 30-day free trial.
  • Sharing: You can share your account with up to 2 people when you upgrade to the $8.99 per month subscription model. This could effectively reduce the cost of Netflix in half.
  • Usage: For the frequent TV or movie buff, Netflix is an easy first choice. Watching a movie could not be simpler and the bandwidth is impressive. You can easily stream HD-quality content on multiple devices (i.e., tablets, smartphones, computers, and televisions).
  • Review: The instant, on-demand collection that Netflix has built is impressive. Although, keep in mind that they have stiff competition from Amazon’s Prime media service. Netflix is a steward in the media distribution industry. They noticed that accounts were frequently being shared between other people and didn’t stop the practice. Instead, Netflix instituted a reasonable sharing and account model to allow members to split the costs.
  • Other ways: Hulu, Crackle, and YouTube all offer vast media stores where you can find tons of free content.

Spotify Premium

  • Cost: $9.99 per month
  • Access: Millions of songs, and offline access.
  • Student discounts and/or free trials: Yes, there is a student price of $4.99 per month. Yes, there is a 30-day free trial.
  • Sharing: Spotify explicitly states that you are not to share the service. If two users begin streaming at the same time, one user will be cut off. Spotify only allows one person at a time.
  • Usage: This is best music subscription service out there. Tons of companies have started their own, but Spotify leads the way. If you are listening to music everywhere you go and on multiple devices, no service is easier.
  • Review: It’s important to note that Spotify has a free, base level of usage. You can make playlists, listen to music, and start special Pandora-like radio stations at this ad-supported level. Once you pay for Premium, the ads are removed and you can save songs for offline use. This definitely comes in handy for the frequent air traveler or the ad averse.
  • Other ways: You can always keep the free level or use YouTube to listen to nearly any song.

For a price, the content world opens up and becomes an amazing buffet of entertainment. Over the years, premium services have become more affordable. But frankly, there’s still more progress before the prices are easily affordable for everyone across platforms. To enjoy the benefits of each platform to the fullest, you’d be spending about $30 per month. While not an exorbitant sum, this may not fit within a tightly constructed, frugal budget. The choice is yours, but it’s never been easier to go without pirating copyrighted material. That’s progress.

Filed Under: Save Money Tagged With: Amazon, Books, cost, Fee, Films, kindle, Monthly, Movies, Music, Netflix, Premium, Prime, service, Spotify, Subscription, Unlimited

How Amazon Prime Membership Helps Me Go Without A Car

By Frugaling 9 Comments

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Amazon.com Boxes Prime Shipping
Photo: Carl Malamud/Flickr

Two weeks without a car. What a crazy feeling! Every day I’ve experienced a sort of dull, phantom-car syndrome where I imagine driving somewhere, and then realize I don’t have a car. But each time, I feel comfortable with the decision I made to sell the car. Now, the trick is learning to live with less.

Oddly enough, it doesn’t feel like I’m compromising anything. I’m saving money, investing, and beginning to budget for a strong financial future. I think many people fear that not having a car will be restrictive, but it’s only been freeing for me.

Today, I wanted to highlight two essential Amazon products that I’m now using without a car.

1. Amazon Prime Membership

A few years ago I joined Amazon Prime with a student discount. It was under $70 for a year of two-day shipping, Kindle library books, and TV shows. I took advantage of a 6-month promotional trial, too. It was amazing. But after a couple years, I decided to cancel my membership.

With a car, it just made more sense to go to the local store. Since then, Amazon’s prices have been falling. And without a car, the whole cost curve changes. I’m willing to spend a little bit more on products to save a lot of time and money on auto payments.

There are some products that Amazon excels at delivering. For instance, on my bike, it’s not possible to bring home bulk supplies of toilet paper and towels. I’d be stuck buying 4 rolls at a time, at exorbitant prices. Instead, I order a 40 pack online. It’s delivered straight to my door within two days, too. Amazon is still offering a 6-month trial for free and it’s the best deal out there.

Here’s what I like:

  • Reliable service and amazing customer support
  • Two-day shipping for any amount of items
  • Free access to TV shows and movies (no need for a Netflix membership!)
  • A wealth of Kindle Library books that can be checked out for free
  • Bulk items delivered at comparable cost to local stores

2. Amazon Store Card

Amazon Prime Store CardAmazon beefed up the benefits to their store card, and I decided to apply for it. The Amazon Store Card is only for use on their website. While it offers special financing deals for certain expensive products, that’s not how I’m using it. See, if you don’t use the financing offers, it acts like a rewards credit card.

At the end of every statement month, I receive a 4% credit on all my Amazon purchases. And when I say credit, I don’t mean a gift card. It’s cash back. Now, I’m saving 4% off every purchase and combining that feature with Amazon’s incredible Prime shipping benefits. It makes going car-less effortless.

Here’s what I like:

  • Easy to apply for and get the credit card, as it doesn’t require especially high credit rating
  • Offers an immediate $20 credit on your next purchase
  • Provides a 4 percent discount on all purchases, as a statement credit
  • Automatic monthly payments can be setup for hassle-free service

Filed Under: Save Money Tagged With: Amazon, Amazon.com, Free Shipping, kindle, Prime, Store Card

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