Aug 2005
Perception is reality; Apple a consumer company?
Tuesday - August 16, 2005 Filed in: Positioning
| Consumer
Technology
Traditional Broadcast Media is about to get a major
overhaul. Traditionally the demi-cartels, consisting
of the networks (like ABC, NBC, CBS or in radio Clear
Channel, Vivendi etc.) have a stronghold over content
production and distribution. Control of these
segments is under tremendous new pressure.
1/ Content stronghold
For less than the average cost it takes to setup a restaurant, no more than $50,000, a professional video content production company can be created to produce top quality 1080i HD content (radio can be produced at a fraction of that cost using podcasting technology). Imagine a world in which the number of content production firms rivals the number of restaurants in your town (and not just Al Gore's new Current Network). Soon we will embrace new anchors and fresh programming throughout the whole season, instead of the four seasons of repetitive programming mix we have been forced to swallow for so long.
2/ Distribution stronghold
Most networks own the stations. Up-and-coming content producers are forced to do business with and, obey to the rules of distribution players to get exposure. Now with the advent of IP Television, Podcasting and upcoming convergence technologies from Tivo and Netflix and others, diverse content will be brought to anybody with an internet connection. The judgement of good content will finally rest in the hands of the viewers.
Two major factors play a role in the accelleration of change:
1/ The slowdown: The FCC is working at its own pace to change the 40-year old rules of broadcasting through governmental processes and buy-in.
2/ The speedup: The unstoppable adoption of the Internet will create new broadcast heros and "networks" that reach a broadcast and market hungry audience; our youth.
Networks better get their act together, build their own internet distribution delivery strategy, determine what people really want to watch, use real (not analytical or statistical) popularity data to up-sell popular internet programs to network television. It is not too late for networks to respond, but their time is running out.
Let the games begin.
1/ Content stronghold
For less than the average cost it takes to setup a restaurant, no more than $50,000, a professional video content production company can be created to produce top quality 1080i HD content (radio can be produced at a fraction of that cost using podcasting technology). Imagine a world in which the number of content production firms rivals the number of restaurants in your town (and not just Al Gore's new Current Network). Soon we will embrace new anchors and fresh programming throughout the whole season, instead of the four seasons of repetitive programming mix we have been forced to swallow for so long.
2/ Distribution stronghold
Most networks own the stations. Up-and-coming content producers are forced to do business with and, obey to the rules of distribution players to get exposure. Now with the advent of IP Television, Podcasting and upcoming convergence technologies from Tivo and Netflix and others, diverse content will be brought to anybody with an internet connection. The judgement of good content will finally rest in the hands of the viewers.
Two major factors play a role in the accelleration of change:
1/ The slowdown: The FCC is working at its own pace to change the 40-year old rules of broadcasting through governmental processes and buy-in.
2/ The speedup: The unstoppable adoption of the Internet will create new broadcast heros and "networks" that reach a broadcast and market hungry audience; our youth.
Networks better get their act together, build their own internet distribution delivery strategy, determine what people really want to watch, use real (not analytical or statistical) popularity data to up-sell popular internet programs to network television. It is not too late for networks to respond, but their time is running out.
Let the games begin.
Broadcast Media unleashed
Blog readership in the first quarter of this year
jumped 45 percent to 49.5 million people, or
one-sixth of the total U.S. population, according to
a report in Red Herring today. As
potential buyers are looking to learn from
micro-celebrities what to buy and visit the
blogs that gave these micro-celebrities their
status, advertisers have new opportunities to
attach specific marketing messages to specific
content in these blogs. A new Adwords or Vibrant
Media - like opportunity where blog content is
matched with pre-defined and pre-paid
advertising keywords or categories is on the
horizon. Advertising strategies are changing
fast and about to get a big makeover again.
Never before have advertisers been able to
target buyers more precisely. Another reason why
the Internet is becoming such a powerful
distribution channel.
Advertising Make-over
Monday - August 08, 2005 Filed in: Strategy
At The Long Tail Churchill Club event this morning
Chris Anderson (Wired Editor in Chief and writer for
the Economist), who claims ownership of the term,
discussed his research and his upcoming book about
The Long Tail. His speech reiterated some well
understood findings at Amazon, Netflix, Rhapsody (all
of which have been mentioned here before) as well as
some esoteric analytical findings in which academia
make an attempt to approximate the outcome of Long
Tail markets with formulas. The Q&A session lead
us into some of the business impacts of Long Tail
markets. First he agreed with us, no business should
create a Long Tail without a Torso. Second, new
search technology customized to every individual
usage (vertical search) is essential. Third, new
"Taste-makers" of the world or micro-celebrities,
vocalized by blogging about niche expertise, will
fuel and direct the trust in The Long Tail.
Meritocracy with democratic production. Interesting
example mentioned was Lego, the toy company that
changed its conservative marketing strategy (Pareto
based) into a community marketing strategy, realizing
better segmentation and margins can be derived from
its very loyal community that continues to grow.
Our stance: Long Tail markets can succeed if:
1) The Torso exists and is successful in drawing the crowd
2) Long Tail demand is fed through Long Tail supply, creating a free-market
3) Arbitration is "owned" by the marketplace (not the company)
4) The marketplace offers sufficient transparency, to allow for discovery, not just search
5) The business behind the marketplace makes money on distribution (not aggregation)
6) The marketplace offers integrity, in pricing, use and abuse prevention
Read on for more information on The Long Tail in this blog series...
Our stance: Long Tail markets can succeed if:
1) The Torso exists and is successful in drawing the crowd
2) Long Tail demand is fed through Long Tail supply, creating a free-market
3) Arbitration is "owned" by the marketplace (not the company)
4) The marketplace offers sufficient transparency, to allow for discovery, not just search
5) The business behind the marketplace makes money on distribution (not aggregation)
6) The marketplace offers integrity, in pricing, use and abuse prevention
Read on for more information on The Long Tail in this blog series...