Are subscription based services the future for producers and DJs ?

Ever since Netflix started the global subscription based service goliath that it is today , it seems that a lot of companies have seen that this formulae is the best method to extract the maximum amount of profit that it can get from its consumers. It seems that long term payment schemes are way more profitable than once of or even short term payments. After Netflix came out there has been a slew of companies jumping on this trend , with that being Disney + , HBO Max , Amazon Prime , Apple TV and more . This TV streaming trend is now finding its way into the music industry .

Its not new per say , as what I had seen in the past , for example purchasing a piece of software , was either a once off ownership payment or a ‘rent to own’ model that would see the consumer pay a monthly fee for a couple months or a year until they have fully paid off the full amount at which then they own the full software package that they had paid for. Recently on the Steinberg Facebook page they had posted a rather cryptic message with how their company will be going forward with regards to purchasing of licenses for their software . The full message herein:

‘‘For many of you this is the announcement you have been waiting for for a long time. While we put our heart and soul into developing ground-breaking products in your best interests, we haven’t accomplished our promise to provide you with the user experience you deserve in every part of Steinberg’s technologies in recent time.

We have been listening to your feedback for years, but big changes need time and we had to carefully lay out our vision for the future. But now the time has come to put our approach to license management at the center of our attention.

We have decided to adopt a new license management technology that everyone will benefit from to prepare for coming requirements.

An authorization system shouldn’t get in your way, but support you in the onboarding process.

Anti-piracy protection technology shouldn’t restrict you as the customer, but secure your investment.

A license management shouldn’t stop you from using your products, but enable you to be creative, whenever and wherever you are.

At this point in time, all we can tell you is that everyone at Steinberg is strongly committed to providing you as soon as possible with a solution that offers more flexibility, more reliability and, of course, a seamless migration.

It’s too early to announce details on the schedule or the new environment, but one thing is for sure: The future will be dongle-free.’’

When it came to purchasing of Steinberg software you would have to had purchased a USB dongle which stores all your licenses , of which you would have to had had inserted at all times into your desk/laptop when using any of their software , it was called ‘e-licenser’ . There have been a few bugs with the e-linceser and it seems that Cubase could be using this minor problem as a means to push their customers onto a subscription based service . The statement that they came out with is a little vague but in my opinion is pointing towards a subscription model . But in the days following the publication of this statement they have made it clear that they are not going for a subscription model . Could it be from public backlash ?

I have recently learned that Roland has had their own subscription service for some time now , ‘Roland Cloud’ . This cloud based subscription service gives you access to over 50 virtual instruments of which you have the option of 3 different tiers of subscription . Starting from $2.99 a month up to $19.99 a month for the top tier subscription . They still give the consumer the option to purchase instruments separately as a once off payment as another option.

Beatport have recently launched their own ‘all in one’ online DJ subscription service ‘Beatport Link’ . Its a service that gives you access to all the tracks available from their website as well as their own virtual DJ software where you mix tracks , create playlists and more . You can also use this in conjunction with Serrato , Rekordbox , Virtual DJ and more . The payment tiers start from $14.99 a month up to $49.99 a month . To me it sounds like a mix between a Spotify & a Virtual DJ subscription.

I would like to add that I have never used any form a subscription service when it comes to DJing or producing, so I don’t have a strong opinion when it comes to how they work but I can only judge from the pricing and what they have to offer and how I think it will benefit me personally . There’s allot to unpack when it comes to these services , if you want to get more detail checkout the videos above and their social media pages for a more detailed description of their services.

I’ve always been a ‘buy it now , own it now’ kind of guy . When ever it came to software licensing or purchasing I’ve never had any issues , albeit very small ones , that stood in the way of me creating or mixing tracks. In my opinion it does seem rather blatant that these companies are now jumping onto the subscription ‘bandwagon’ . Subscription is the most profitable way of businesses to truly maximize their profit from their consumers. We have seen the proof from outlets such at Netflix. In the long term they are getting way more profit than they ever would have from a once off sale . This comes across as very greedy in my opinion , especially seeing that this is something rather new in the music industry compared to TV services , in that being there is not allot of competition and prices AT THE MOMENT are reasonable . I use the term ‘at the moment’ to make a point of what will happen in the future ? Its very easy for companies to start a subscription service at a good price point to lure in customers and once they have their cliental base they can then slowly increase there monthly subscription pricing. Netflix has been doing this every 1 to 2 years , gradually increasing the price of their subscription . Its very easy to do this as the amount in short term is very little , but once you start to look at it over a few years the amounts start to add up . If , for example , a company increases there subscription from $14 to $15 in a single year , a consumer could be like ‘ its only $1 , why not?’ and then this $1 increase could be happening every year , eventually after 5 years you are looking at a 33% increase in the cost of a subscription . This is a trend that I personally think will happen if companies start to adopt the subscription model, especially if there is not allot of competition and if the market is very niche , they advertently ‘force’ their customers in paying for this service . It could also get allot worse , we have seen already companies offering different tiers of subscription . This could be spread out more and could potentially block major features, for example, for those wanting to joining a subscription on a lower tear (maybe they cannot afford an expensive subscription) and force them to purchase more expensive subscriptions due to having certain features blocked behind a ‘pay wall’ .

My personal opinion on subscription based services in the music industry is that it does not belong here . You cannot maximize profit from this market as you could with a TV based subscription service. This is not Netlfix. The same rules do not apply . You cannot force consumers to use subscription based services to ‘pigeon hole’ us . I would say at the most have a rent to own sub basis . I would also like to say have an extra option above all of this for a subscription based service but this would just lead to the ‘flood gates’ opening up . I for one hope to never enter a subscription based service when it comes to DJing and producing . But then again I don’t know what the future holds.