The focus will be on digital media companies involved in:
– content creation
– delivery channel
The Internet has proven to be a great disruptor to the delivery of media content over the past years and it has indeed revolutionized the way people interact with media. Look at the proliferation of online music file-sharing and movie-viewing and how RIAA and MPAA have camped out in the legal courts in a frantic, and possibly futile battle to fight the tsunami of innovation endangering their revenue bases. The notion of paying for music albums or even going to the cinema will be antiquated concepts to the newer generations born and bred through their youth with their familiarity to the Internet and their cellphones.
The game has changed, no way can a 10++ compilation of songs on a CD be useful to ipod or MP3 player toting users, they will simply rip and copy the music to MPs so they can lay it on these MP3 players, if so, why bother selling them as songs on CDs? Who carries CD players anyway? Sony’s dead, embrace iPods and their clones. I think it was Carly Fiorina who first mentioned this: “Digital, Mobile, Personal and Virtual”. That is how people will interact with all their data, photos, videos and whatnots in the future. Think movies and ask why anyone will consciously go to a cinema, run through the hassle of queueing, squeezing with other thousands of pple to watch it in a cinema when the non-social activity of movie-watching can be replicated in any who owns a high-end HDTV set hooked up to a computer with a broadband connection and a good-quality high end system all at affordable prices and equitable to the cinema experience, albeit with more privacy. My point for movies is:
since it is a non-social activity (when was the last time you spoke to a fellow movie-goer that is not a date nor family member DURING a show?)
– understand the technology available that would best present the same experience to the potential movie watcher (i.e. HDTV, sound system, computer, broadband) and find a way to deliver the same content to him/ her.
– i am not smart, but a simple investigation of the current product delivery process of a movie from the studio to the eyes of the audience requires multiple parties to be paid, racking up huge costs to the eventual customer that create ZERO value to the customer, based on the current state of technology.
Industry titans, of course, have recognized that. The Internet Revolution have permeated not just songs and movies but also games and created new online communities that interact amongst themselves. NewsCorp gets it, and are changing themselves rapidly with multiple internet-based acquisitions (e.e. Intermix Media, IGN Entertainment). So does Dow Jones with the purchase of Marketwatch.com, and New York Times who bought About.com.
Here’s what the new Internet Boom will be based on:
– Sustainable Revenue Model (Online Advertising, look at the rocketing sales figures of Google, Yahoo! and MSN)
– A rapidly-expanding Global Internet-savvy population (broadband penetration is key)
– Content Democracy –> Self-published independent content generated by individuals around the world, not companies/ studios/ conglomerates.
These 3 forces are mutually-reinforcing, highly scalable and thus present endless new commercial opportunities for Internet enterprises.
The third-party externalities of the Internet boom will also directly and positively impact the wireless cellphone industry, consumer hardware industry, infrastructure providers, broadband service providers etc.
The whole physical universe, as we know it in the history of mankind, is migrating to the digital realm of bits and bytes. This is natural progression of our society, in terms of productivity, efficiency and convenience. There is no turning back of this wave of progress.