A few days I posted (along with the rest of the blogging world) about what Phil Vischer has going on at Jelly Telly. When I posted, I had only watched the first 10 minutes or so of the Phil’s video. A few days later I sat down to watch the rest. It was all good. I’m very anxious to see Jelly Telly in action and hope it is crazy successful. What intrigued me the most; however, is Phil’s strategy to fund Jelly Telly. I love what he’s going to do.

Phil decided to go the subscription model. Pay a monthly fee and get access to great programming. Sounds reasonable. There are many other subscription services for kids that are worked well right now. Then Phil dropped the bomb. How much will it cost per month? It’s up to you. You pay what you feel it’s worth! WOW!

Several months ago the British band Radiohead tried something just like this. Rather than sell their album the traditional way, they allowed fans to download their album for whatever price they wanted. It was a huge risk. No one had done this before. The results? The profits from the digital downloads far exceeded the combined profits of digital downloads of all their previous studio produced albums. I think I read somewhere that the average price paid was $6 or $7 per album. Although that is less than they’d get for an album sold the traditional way, the band actually made much more money since they cut the studio out. Their innovation started new movement.

What I love about Jelly Telly is that it is pure capitalism. If they produce good content, then they’re probably going to be successful. People will want it, they’ll value it and they’ll pay for it. If not, they’ll have to find another way to pay the bills. So, hats off to Phil Vischer. I look forward to seeing what he cranks out and wish Jelly Telly the best!