Demi-cartel
Microsoft is getting it!
This may be my most unexpected subject: Microsoft's
good side. As a forever Mac user I am not a big
proponent of the demi-cartel position Microsoft
instills on the computer industry, yet I realize that
at the same time Oracle pursues a cartel in the
database business and Apple is driving for a cartel
in the music business. So all the major players
deploy the tactics that suit their success in the
market. C'est la Vie.
But my recent observations of Microsoft are very positive. Today I read the XBOX people are prepping tools for individual game designers to build their own games. That is big. Big as in free-markets. The free supply and demand characteristics of free-markets are brought to the gaming industry, absolutely beautiful. Microsoft will be a winner through an effective platform on which both the supply of the Long Tail and the Body (main stream supply) of the gaming market thrive.
Also, interesting has been the personal experience with Microsoft, especially the entertainment group. I am currently positioning a Venture Company portfolio company to Microsoft (full-body gesture recognition), and within less than two weeks they respond, call and are prepared to setup a meeting. Companies like Apple, Sega and many others can learn something from this agile behavior of a big gorilla. Microsoft is truly changing.
But my recent observations of Microsoft are very positive. Today I read the XBOX people are prepping tools for individual game designers to build their own games. That is big. Big as in free-markets. The free supply and demand characteristics of free-markets are brought to the gaming industry, absolutely beautiful. Microsoft will be a winner through an effective platform on which both the supply of the Long Tail and the Body (main stream supply) of the gaming market thrive.
Also, interesting has been the personal experience with Microsoft, especially the entertainment group. I am currently positioning a Venture Company portfolio company to Microsoft (full-body gesture recognition), and within less than two weeks they respond, call and are prepared to setup a meeting. Companies like Apple, Sega and many others can learn something from this agile behavior of a big gorilla. Microsoft is truly changing.
Broadcast Media unleashed
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.