Turbotodd

Ruminations on tech, the digital media, and some golf thrown in for good measure.

Posts Tagged ‘digital

All About The Content Razorblades

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The Interwebs platform wars continue to escalate.

Not days after I read Ken Auletta’s fine New Yorker piece on the U.S. antitrust suit against Apple and several book publishers for alleged price fixing — a scheme that clearly had Amazon and its Kindle Fire in its gunsights — do we discover that Amazon is working with Foxconn on its own mobile mousetrap, one that, like the Fire, would presumably provide easy access to all kinds of compelling content from Amazon’s vast cloud of digital entertainment.

Books, movies, gaming apps…Amazon’s play suggests that the Internet industry is moving into the razor/razorblade club, with the devices being the razors, and the razorblades being all that vast digital content.

I, personally, mostly don’t care which razor I use. I’ve owned tablets and smartphones both Android and iOS now, and most recently have given a Kindle (not the Fire) a test drive.

The most important element for me in the digital content wars are the depth and sophistication of the content libraries themselves.

That is to say, help me move beyond Amazon and Apples’  57 Channels On Demand and Nothing On!

Amazon’s bookstore, of course, has virtually the world’s book population at your disposal, so no complaints when it comes to reading (although I do agree we need healthy, competitive alternatives to the Amazon reading ecosystem).

But when I go into my Amazon Prime movie library, which lets me watch some movies for free with my Prime subscription, it’s like dragging the bottom of the movie barrel.

To some degree, I see the same problem with Netflix, although Netflix has seemed to have worked more diligently to expand its library.  Amazon Prime, on the other hand,  just added a bunch of new episodes of William F. Buckley’s “Firing Line.”

Woo hoo, where do I renew my subscription??!

The cloud providers may be lining to try and lock in as many denizens as they can via their device and subscription services, but the form factor is less important than the catalog function.

What’s kept me from cutting my own cord on the TV is the fact that the Netflix’s and Amazons of the world don’t have enough diversity of content (never mind live event access to major sporting events, which for my money are msotly worth the high cost of monthly cable subscriptions alone).

So if the Apples and Googles and Amazons really want to move these markets, they need to quickly hire some sophisticated business development executives and hard-driving attorneys who can  make some negotiation headway in the hills of Hollywood’s film libraries  rather than try to draw lines around the device footprints.

It’s never about the razors, always about the razorblades.

Written by turbotodd

July 6, 2012 at 2:45 pm

The Green Monster

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I picked a heckuva week to travel up to Boston.  I arrived the same day as the Boston Marathon, and apparently, the weather this year for the run was “hellish.”  In fact, I met a guy on the rental car shuttle bus who had just run the marathon, and he explained all he wanted was a beer, he was SO sick of drinking Gatorade to stay hydrated during the race.

But also this week, we’re witnessing the 100th anniversary of Fenway Park, one of the classic old baseball parks and home to the 7 time World Series champion Boston Red Sox.

No sooner do I arrive in Boston than I start reading that former Texas Rangers manager Bobby Valentine is stirring up agita amidst the player ranks in Boston — ah, we miss you down in Texas, Bobby.

I’m expecting to attend the Rangers/Red Sox game this evening at Fenway, my first time there.  I’ll be the crazy Texan along the third base line wearing the cowboy hat (not really).

Since age-based segmentation schemes no longer suffice in the connected consumer era, IBM Media & Entertainment is finding that behavior-based segmentation is now essential. IBM's 2011 survey revealed four prominent types of digital personalities that are not age-based, but instead are based on the combination of degree of access to content and intensity of content interaction This type of analysis is now essential to delivering compelling consumer experiences.

Now, out in viva Las Vegas, the National Association of Broadcasters show has kicked off.  As part of the festivities, IBM just released a new IBM study of the media and entertainment market, which reveals that as consumers adopt an increasing number of digital devices, four distinct new “digital personalities” are emerging.

Think Sybil for iPad users!

This shift, in turn, is compelling companies to adopt more innovative business models that deliver personalized experiences.

Here’s some details behind the study: First, not all these folks are college students, contrary to popular belief. Sixty-five percent of respondents aged 55 to 64 report surfing the Web and texting with friends while watching TV.  Take that, young whippersnappers.

Eighty-two percent of surveyed global consumers aged 18 to 64 embracing connected digital devices.  And more than 50 percent of consumers in China and the United States are moving away from traditional forms of media and using online sources for breaking news.

The New Personalities: Instant, Efficient, And Social

With the growth of digital devices, one-way communication and distribution of content is no longer enough. Connected consumers these days are demanding instant access to personalized content on their own terms.   These new “personalities” look as follows:

  • Efficiency Experts: With 41 percent in this category, these respondents use digital devices and services to simplify day-to-day activities. Efficiency experts send emails rather than letters, use Facebook to communicate with others, access the Internet via mobile phones, and shop online.
  • Content Kings: Are generally male consumers, who frequently play online games, download movies and music, and watch TV online. This audience represents 9 percent of the global sample.
  • Social Butterflies: Place emphasis on social interaction – they require instant access to friends, regardless of time or place. Fifteen percent of consumers surveyed reported they frequently maintain and update social networking sites, add labels or tags to online photos, and view videos from other users.
  • Connected Maestros: 35 percent of those surveyed take a more advanced approach to media consumption by using mobile devices and Smartphone applications to access games, music, and video or to check news, weather, sports, etc.

“Media companies need to engage with consumers based on their digital personalities, if they are going to maintain a sustainable and connected relationship, said Saul Berman, Global Strategy Consulting Leader, IBM Global Business Services, and co-author of the study. “With the mass infiltration of digital devices, organizations can now enhance, extend or redefine the customer experience within minutes due to a steady stream of real-time data via social media. Future success is dependent upon successfully executing on insights based on this data, to reach the right consumer, at the right time and place, using the right tools.”

According to the IBM study, media and entertainment companies’ payment infrastructures need to be flexible and scalable to allow a variety of innovative pricing approaches to attract consumers with different preferences to their content.

The need for payment option flexibility, even for the same set of consumers, is apparent by looking at those most active in adopting new devices.

This group’s preferred mode of payment to watch a movie on a website is by viewing advertising that is included with the movie (39 percent of this segment chose this option), while they prefer to see movies on a tablet by purchasing a subscription (chosen by 36 percent). But to watch movies on a smart phone, they prefer to pay per use (the payment choice of 36 percent).

IBM surveyed 3,800 consumers in six countries – China, France, Germany, Japan, the United Kingdom and the United States for this study, and also met with global representatives in broadcasting, publishing, as well as media service agencies, and telecommunication providers, to evaluate digital consumption behaviors.

You can register to download the full report here. 

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