Why Netflix Won (And Why Digital Music Start-Ups Can’t)

Here’s a good coda to last week’s “digital music start-ups are screwed/no they’re not” debate: A concise explanation of the Netflix digital success story, via Venrock’s David Pakman. Key insight: A really big check solves a lot of problems. Unstated corollary: Netflix can write a really big check because consumers place a much higher value on TV + movies than on music: They’ll pay $9 a month for limited access to video but not $10 a month for unlimited tunes.