Wednesday, February 04, 2009

Hollywood: Failing to innovate and fighting a futile battle

I am not a proponent of piracy.  However, I am no fan of media firms trying to fight a war against piracy which they will eventually loose.  The music industry has brought upon itself a downfall that started with its strategy of selling CDs with one single hit and junk music.  they failed to recognize that the rise of napster was a direct consequence of such short-sighted policies.  Eventually, time caught up as Apple innovated first launched the killer ipod-itunes combination. The battle for the music listening customer was won by a elecronics manufacturer and not a music industry incumbent.

Hollywood needs to learn from the music industry's mistakes.  If they continue to pursue piarcy instead of trying to figure out alterantive models of entertainemnet consumption, they will soon go the way of the many failed music firms. As broadband gets faster and more consumers get it, the easier will it be to download entire films or watch them online. The only thing that saves Hollywood is the cinematic experience that comes from visiting the theatres.True, it is a big advanatge and surely it will not go away soon. However, the trend clearly shows that increasingly households are becoming the centers for consumption of entertainemnt as a whole - the rise of netflix, PS3, Xbox Live and Wii re early indicators of a big convergence occuring across multiple product categories.  The sonner film houses realize this and adapt to the change the better.

Tuesday, February 03, 2009

Why can't some firms innovate for the better

A simple rule like not allowing an adult lookup the profile of someone under the age of 18 seems sensible on a social networking site.  I don't think one should even call this innovation.  It is appropriate product/service design. Yet, the internet's largest social networking site does not get it right the first time. It took a couple of state attorney general's to intervene before they implemented this rule.

Now, these websites have purged more than 90,000 sex offenders from their rosters.  A very infamous distinction to have them in the first place. 

More importantly, the parent firm of owned by Rupert Murdoch also runs that foul-mouthed conservative news channel called Fox News.  The kind of "morals" and conservative "ideals" they discuss so much on their conservative shows do not agree with what has been doing.  I wonder how they reconcile such things.