Airing date: 09/25/2018

You Don’t Own Digital Products And They’re Taking Them Away – Millenials Stealing Streaming Services

Craig Peterson: [00:00:00] Hey good morning. Craig Peterson here this morning I talked to Jim Polito about a couple of topics I think you’ll be interested in. One is the iTunes Store and article that came out of CNBC and I think this is really kind of interesting. Sara Salinas, S-A-L-I-N-A-S, came up with this article. But millennials sharing streaming passwords. This is a real big problem. It’s going to change things for everybody really kind of kind of in a major way, I’m sure because of millions of dollars at risk here and being lost and your digital quote purchases. Are they really what they appear to be? Guess what? They aren’t purchases, right. So we talked a little bit about that and my experience of George Orwell’s 1984 where you guys are out. Did you ever buy that book on Amazon Kindle and then have it deleted from your Kindle device while it’s happening more and more and it’s not just Amazon that it’s at risk. I also want to say a quick thanks and shout out to all of the people who responded to my survey if you haven’t already just take a minute this is going to be so beneficial for you because I have a new masterclass I’m going to be doing. And we’re starting in about two weeks I think and I want your opinion what should I be teaching what’s going to be real value to you? This is a free class. Okay, so we’ve got I don’t know somewhere 100 plus call or calls responses I think so far 150 people I think click through to the survey so if you haven’t done it yet, please do it. Just take it this won’t take you two minutes literally not two minutes. Double check if you are a subscriber to my email. Look at my email from Saturday it just comes from me at Craig peterson.com if you are an SMS subscriber check your text messages I sent out on Saturday. And Oh, and by the way, I’d be interested to know when you receive the message as well. Some people are complaining they don’t get my texts until like mid-afternoon on Saturday. And I send them out right at the start of the show to remind people about the show. So I don’t know it’s all crazy. Anyhow, let me know. Go there. Check out your email, check out your SMS. If you are not subscribed already. Make sure you subscribe. Craig Peterson comm slash subscribe. That’s how I get all of my articles out to people. All of this stuff that I’m finding online. And I go through hundreds of articles narrowed down to about a half a dozen important tech and security articles for the week. So if you’re not on the list, make sure you get on the list. And now here’s Jim

Unknown 2:53
He is the man with all the answers. He’s our good friend. And he is the Tech Talk guru I’m talking about Craig Peterson. Good morning, sir.

Unknown 3:03
Are you good morning, Craig,

Unknown 3:06
what is this waning moments? So I go to the iTunes and

Unknown 3:10
download a song and own it, let’s say Free Bird by Leonard Skinner. And I go to the checkout. And what’s the

Unknown 3:23
what’s the deal? You mean? I’m paying for something, I don’t own it. What are we? What is it? What is this, I’m renting it.

Unknown 3:30
This is a bit of a surprise for people. But we’ve known about this for a while. For instance, I’ve had an Amazon Kindle for many, many years. And, and that’s the electronic device from Amazon that allows you to read books electronically carry hundreds of them with you. And I love it. I every night before I go to sleep. I have my little Kindle. I don’t know if you remember this one or not. But a few years back there’s this book written by this Orwell character. And I bought it called 1984. And it was a great book. And I read it and many other people bought it as well from the Amazon store for their Kindle. And then one morning, they got up and the book was gone. It has been deleted from their Amazon Kindle or years

Unknown 4:23
in 1984 to Come on, guys. Really? That’s the guys to lead to. Right. Yeah. So a lot of people asked about trying to figure out what’s going on. Now we’ve got a new problem that people are noticing. Actually guys, it’s the same problem with the iTunes Store. It’s happened with other online stores. And that is that you can’t buy anything anymore. You know, if you went and you bought a physical copy 1984 from a store, the courts have ruled that you can take that book and you can burn it. You can do anything you want with it. Almost right. You can sell it to someone else, right? Yeah, the same things true. If you bought a VHS tape or a DVD, there’s aftermarket stores still for records if you’re still like playing the old records. Yeah. Well, as it turns out, these electronic devices I have a little bit of a change in them know, you remember the change from records to CDs? Yes, I knew all live through that. Yep. Yeah, it was bold enough for that. And, and I remember at the time I was really upset because it costs to the guys that made manufactured and sold the albums you know, those big old black records it cost of about a buck apiece to make those and, and get them out to the store. Okay. And then along came CDs. And a constant of about three cents. Yeah. And, and remember, they were more expensive. A CD was more

Unknown 6:04
expensive. Yeah,

Unknown 6:05
it was like, what was that five to 10 bucks for a record and media like 15 to 30? Yeah, it was crazy. So I was really, really upset. Well, they, they had problems, right, because people wanted to buy the CDs because they sounded better ended up replacing your whole catalog by, you know, you’re like, Oh, I want it on CD now. Yeah, it was just convenient. It didn’t scratch. It didn’t pop, you didn’t get clicks, right? All of those wonderful things. So that’s what people did. We all upgraded. Well, the music industry in the book industry kind of looked at all of us and said, ointment, and now people are starting to make copies of CDs. And so they got very upset because they were making copies of CDs, you know, these CDs that cost them we, you know, at least 10 times less than it costs them for the old stuff to make. So they were making a lot more money. Well, fast forward to about 1015 years ago, when Steve Jobs came out with the Apple Music Store. He was forcing them just forcing them Jim to sell their songs for 99 cents,

Unknown 7:16
which is a great price point, right? You don’t think twice Yeah,

Unknown 7:20
well, 99 cents for a song. It’s great.

Unknown 7:23
Yeah, so the guys and gals decided they would play some games with licensing know to hit that 99 cent mark and they did something similar with Amazon and that is you do not own any of this stuff. all you are doing is you’re buying a license to use it so even though it costs for instance my main topic 1984 from Georgia Well, I bought on my Amazon Kindle cost less than a penny to distribute. And yet Have you noticed you Kindle books cost almost as much as a hard copy book. Yeah. which caused them again, more than $1 to print and ship right away. So it cost them a lot less but you now not only are our pain dramatically more incrementally, but you don’t even own it anymore. I can’t believe that

Unknown 8:22
that so so it’s basically like what Microsoft does now with software like you used to buy Microsoft software and then you get re updates then they come out with a later version now you pay a yearly fee to use that Microsoft software on your computer. Well have you seen Microsoft now for Windows seven now this is their older operating system windows man eight and seven are the three primary ones right now they’re Microsoft has changed it to a monthly rental you if you want updates, you have to pay them every month. So if you buy a movie via airplay movie at this isn’t just an iTunes thing but if you buy a movie online you cannot resell it you cannot resell your Kindle book if you bought it because you didn’t buy it to pay your bought a license to use it.

Unknown 9:16
And and they have every right and this is what happened recently with some of the Apple made all the products out on what do you call these things, right movies and things right. If you have so called bothered to own it, and the license or decides they don’t want to they don’t like it anymore. They don’t like the fact that Apple sold it to for 99 cents, they really thought they should have gotten a buck 30. So they’re going to change the terms of the license, which they can do after the fact according to the fine print because they reserve the right to change, suspend, remove, disable, or impose access restrictions or limits on any external services. And anytime without notice. or liability to you.

Unknown 10:00
That books that movie that song that whatever can be deleted from your device perfectly legally. And they are already doing it. Amazon’s already done it. Google’s already done it. This is a massive change most people just aren’t aware of. We’re talking with our good friend Craig Peterson tech guru who we learned an awful lot from and you can learn more from him. At the end of this segment. I’ll give you a number you can text my name to and get this information at a whole bunch more standard data in text rates apply.

Unknown 10:32
I want to ask you about this one. Now

Unknown 10:36
the millennials are sharing streaming passwords. And that is costing companies millions in revenue. So I’ve got Netflix and I give a bunch of people that password the login and the password. Netflix is just getting one monthly fee for me. But say five different people who don’t live with me are watching off of that. That’s what’s happening. Right.

Unknown 11:02
Yeah, it’s an interesting change because you again, most people, you and I, the older generation, the non millennials were used to having to pay for stuff right if you went to a movie about a VHS tape or a Betamax. You know, you paid for those things. But these younger kids grew up. We’re pretty much everything was available for free on the internet. And, you know, there is a lot of free stuff on the internet. But most of it just isn’t worth anybody’s time of day. And it isn’t right. You know, is it just me so

Unknown 11:40
there is and more and more moving to streaming services. You know, you might have Netflix or Hulu, there’s many others out there. I have Apple Music For instance, I have amazon music so I can listen to music anytime. It’s really kind of cool. I frankly, who buys anymore. In fact, the apples talking about putting off their iTunes Music Store because for $15 a month 15 one five, your whole family can listen to streaming music, no matter where they are any songs anywhere. It’s just a phenomenal deal. So Apple says, Hey, listen, we’re not making the money we used to off of our music store. We might well shut it down. But these millennials that are out there, and it’s primarily millennials, but not all 100%. They’ve been sharing their access for a very long time. And when you’ve got more and more competition, like I mentioned, Netflix has video mimic their own movies on TV shows Hulu, Amazon doing the same thing the rolling out new studios, they’re having a little bit of a problem. So study was just done. It said about the 35% of millennials are sharing passwords for streaming services. So 35% of millennials, 19% of Gen actors table

Unknown 13:02
just raised his hand

Unknown 13:08
and 13% of baby boomers three times as many Millennials are doing it we’re talking about hundreds of millions of dollars of potential revenue that they aren’t booking they’re trying to figure out how to deal with this and this problem is just getting worse Jim it’s a fundamental problem frankly with a mentality that people have there is there’s one person in this story that came on CNBC even reported on this that was saying hey, you know, I’m using the Netflix account of a guy I went on a date with one came by my house and he put his Netflix into my CV

Unknown 13:53
and he kept it for now apparently has been going on for years she has kept at her TV on TV. It’s now her right she’s listen, if she gets married legally, she asked to delete that. That’s cheating. That’s that’s TT like having to return the ring afterwards. I think it is the same thing. Craig Peterson is our tech guru and he’s got more of this great stuff for you. And it’s free and there’s no obligation he’s not going to try to sell you anything he doesn’t sell your name all you have to do is text My name to this number

Unknown 14:33
855-385-5553. That’s 855-385-5553.

Unknown 14:36

standard data and text rates apply. The great thing about being on that list is that when there’s a major hack or there’s something going on he’ll send you a message but he won’t send you spam Craig great segment Always a pleasure to talk with you see you next week. Hey thanks Jim. Bye bye bye bye all right when we return

Unknown 14:58
as always everybody thank thanks for listening and do take a couple of minutes and answer that little survey again it was in your email it was in my text messages on Saturday just look them up it won’t take you two minutes and it’s going to be absolutely beneficial because it’s going to help me understand what you guys want to learn because this is a free masterclass I’m offering to you now my courses I charge for but my classes my master classes are absolutely free. And the only way you can get into one of these classes for free is by answering the question, okay, and there’s only three or four I can’t remember questions on there. So it’s simple, it’s easy. It gets you free admission to the master class. So make sure you do it anyways. Blah Blah. Thanks. Have a great day and we’ll be back tomorrow.