subscriptions

While everyone's been in an uproar about Netflix pricing, few are discussing Netflix itself--and what's still broken about it. Netflix needs its pricing model problems fixed, but Netflix also could use some improvements to how its service works, too--particularly on mobile devices.

As a service, Netflix is at a crossroads. Is it streaming? Is it a DVD delivery service? Is it best as both? For myself, even though I subscribe to the DVD/streaming combo plan, I find myself rarely playing the DVDs I order. They sit on a shelf and collect dust. That's because I'm not a big living-room TV watcher: I cut the cable cord over a year and a half ago, and prefer to use my iPad, iPhone, or laptop to easily stream video. So, to me, Netflix is a streaming-video service.

Therefore, let me address Netflix's faults on those terms: as a streaming-video entertainment service. While we're venting our frustrations over paying more for what Netflix offers, there's no better time to cast an eye on what still doesn't work well on Netflix to begin with. Fix what's broken with Netflix, and maybe, if the service improves, it just might be worth a higher subscription price after all.… Read more

You know something is good when it feels illegal. Such is the case with Spotify, the on-demand music-streaming service that seems too good to be true--or, certainly, too good to be free. Yet, here it is, the "celestial jukebox" we've been dreaming of since the days of illegal gorging on the original Napster. It's called Spotify, it's finally available in the U.S., and music fans have reason to cheer.

What it does What Spotify does is so simple and seemingly harmless, it's actually a sad comment on humanity that it counts as a … Read more

For a cool $50-a-month subscription fee, MoviePass gets you into the movies whenever you want, as often as you want. Think of it like a Netflix for theaters. Following up on our coverage earlier today, CNET had a chance to get on the phone with MoviePass co-founder, Hamet Watt, to get some of the nuts and bolts of the all-you-can-watch service.

Officially launching to private beta June 29, MoviePass will only work at select theaters in the San Francisco Bay Area at first. However, with more than 43 percent of movie theaters already signed on, the company is set to roll out to additional select markets throughout the summer and launch nationally in the fall.

So how's it work? First, use your phone to reserve your seat at any of the supported theaters. Then, when you get to your selected theater, just flash your screen at the box office and receive a ticket, just as though you had paid. You don't have to print anything out at home, and you can use it as much as you want, as long as you pay the monthly subscription fee. For now, that's a simple $50-per-month, but according to the folks behind MoviePass, the company is experimenting with additional pricing tiers as well as a surcharge for IMAX and 3D titles.… Read more

Spotify has signed an American distribution deal with Universal Music Group, the world's largest music label. The pact means that the streaming music company now has U.S. deals in place with three of the four largest labels, making it likely that the company will finally be able move across the Atlantic this summer.

The service still doesn't have a pact signed with Warner Music Group, but people familiar with discussions say the two sides are closer than they have been in the past, and are optimistic a deal will get done. It's possible that Spotify could … Read more

On today's show, scientists discover that shocking tiny artificial brains with electricity produces the equivalent of short-term memory. Apocalypse nigh. Also, the Supreme Court rules against Microsoft in the i4i patent case, Apple goes Calvinball with a NEW RULE that says they won't take a cut of in-app subscriptions. Plus, Citibank got hacked ... a month ago. Thanks for the heads up, guys.

In a surprising move, Apple apparently has decided to change its policy on in-app subscriptions.

"Apps can read or play approved content (specifically magazines, newspapers, books, audio, music, and video) that is subscribed to or purchased outside of the app, as long as there is no button or external link in the app to purchase the approved content," Apple's new rule reads, according to MacRumors, which first reported on the change. "Apple will not receive any portion of the revenues for approved content that is subscribed to or purchased outside of the app."

That stands … Read more

The Financial Times has opted to put its resources into developing a Web app over a native software client to deliver written content to readers on tablets and other devices. The news comes two months after the publication said that it was negotiating with Apple over the terms of the tech giant's now four-month old subscription program.

The timing is of special interest given yesterday's announcement by Apple of "Newsstand," an app that's been built into its upcoming iOS 5 software for the iPhone, iPod Touch, and iPad that will put newspapers and magazines into … Read more

Apple has inked its licensing pact with Universal Music Group and will reportedly charge $25 a year for an iCloud subscription. That revenue stream--once you factor in splits with the music industry--is essentially peanuts, but the value of iCloud will go well beyond the profit and loss statement.

First the news, CNET's Greg Sandoval reports that Apple has cut a licensing deal with Universal Music. That move gives Apple all the major labels and Universal brings U2 and Lady Gaga to the iCloud party. Meanwhile, the L.A. Times reports that Apple will "eventually" charge $25 a year for iCloud and sell advertising around the service.

When you factor in the revenue split with the music industry--labels 58 percent, publishers 12 percent and Apple 30 percent--Steve Jobs & Co. will get $7.50 in revenue for each iCloud subscription.

As for the rudimentary math, Apple is projected to move 184 million iPhone units in calendar 2011 and 2012, according to Piper Jaffray analyst Gene Munster. We'll assume that half of those iPhone subscribers will ultimately pay for iCloud with Apple getting $7.50. That's $690 million in revenue a calendar year.

Apple is also expected to sell 75 million iPad units over calendar 2011 and 2012. Again we'll assume half of those iPad users buy the iCloud subscription. Those iPad units will deliver $281 million in revenue a year in calendar 2012.

As for the iPod, Apple is expected to move 81 million units over calendar 2011 and 2012. We'll assume one third of those iPod users will get iCloud--it's unclear whether the Nano will be able to… Read more

Happy day! Just a few weeks after Fortune, Sports Illustrated, and Time Magazine offered free iPad access to print subscribers, technology mag Wired has made the same move: if you subscribe to the print edition, you get current and back issues in the iPad app, no extra charge.

(Full disclosure: I'm an occasional contributor to Wired.)

That is, of course, the way magazine subscriptions should work. As publishers have discovered, subscribers feel insulted when you ask them to pay twice for content. I know I did.

With Wired, all I had to do was enter my subscriber number (which … Read more