About a week ago, I attended a Linkedin related networking event where a group of executives ate lunch and listened to a presentation. The topic? The convergence of home entertainment and technology.
Michael Greeson, President of The Diffusion Group, talked for 30 minutes about trends in digital entertainment.; What's worked? What hasn't? Where is digital entertainment heading?Here are some of the key points Michael made:
- Home entertainment and technology are converging.
- TVs and other home entertainment products are using CPUs, disk drives, and memory.
- The PC is no longer in replacement mode -- today, when you buy a PC you're able to keep it for three or four years.
So, how will PC companies grow revenues? New business models are needed. Dell's supply chain is its business model. A model that will no longer produce additional revenues by itself. HP is a company that creates products (it spends millions on R&D), and yet HP made a deal with Apple to resell the iPod. It takes a unique set of skills to make digital media products.
What does this mean for companies that make PCs? They need to move to the intersection of media and technology if they wish to grow revenues.
To me, it appears the stars are starting to align in Apple's favor.
The convergence of technology and media means that Apple will be creating products that are easier to see, touch, and hear. And, in turn, its products become more viral. No one ever walked down the streets of New York with a G5 tower tucked under his arm while calculating a return on investment; however, even the New York media comments about the number of people walking to work in Manhatten with white iPod earbuds plugged into their ears.
You see, as we move into the media-technology era, a larger percentage of Apple's vaunted design skills will be on display, and experienced through digital media products. With an iPod you can hold it in your hand, pass it around a party and add songs to a playlist, or let a stranger jack into your iPod (you know, let someone listen to the song playing on your iPod).
Just as I've written about the benefits of employees who think and act like Leonardo, companies that thrive in the digital entertainment segment will also need renaissance skills. Truth be told, Apple's renaissance talents have a chance to blossom and reach its full glory in this new medium. (If I recall correctly, the renaissance period came about through a confluence of events, giving the masters an opportunity to create amazing works of art.)
Now, consider one last point Michael made during his presentation -- "Music is cool, and artists like hanging out with cool people."
The iPod is the Elvis Presley of music players. Wouldn't you hang out with Elvis if you had the chance?
Perhaps that's why rock band U2 has signed a deal to sell customized iPods. Even Bono wants to hang with Apple.
U2 and Bono's endorsement of this product will not only sell it because of U2 loyalists, but it also says something larger about music and downloading," Rick Eiserman, CEO, Brand Buzz, a division of Y&R Advertising that works to build brands, said.
"Bono is saying that it's OK. There's still this group that hasn't crossed over and is wondering if this (downloading) supports the artists," he continued.
He added, "the fact that one of the most outspoken, politically active recording artists is endorsing the product is unbelievable.
Yep, digital media, in hard drives or any storage media, is the future. Gaming, movies, music will all eventually just be in hard drives which you can buy and download online with your high speed connection. Piracy is the major problem though.
Posted by: Ipod Earbuds | December 07, 2009 at 08:53 AM