During a panel discussion on digital media, Steve Lidberg, a research analyst at Pacific Crest Securities, made an observation about the content market for computers and mobile phones.
People today can pay and download a lot of content, whether it’s video, music or games. But Lidberg said consumers only have so much pocket change; a subscription model will become the preferred business model over selling items one-by-one.
That’s where Real Networks has been an innovator, Lidberg said. Today, it offers a music subscription model. He said Apple Computer’s iTunes service could even flirt with the idea of a subscription model.
“We will see more subscription offerings,” he said. “A consumer’s wallet is only so thick.”