August 2006 Archives

An article today in News.com "How to succeed in the gadget biz" about a book by George Bailey and Hagen Wenzek titled "Irresistible! Markets, Models and Meta-Value in Consumer Electronics".

"In our industry the prices fall very quickly, unlike appliances where manufacturers can sell the same product the next year," said Sean Wargo, director of industry analysis for the Consumer Electronics Association. "We've succumbed to a constant source of deflation."

Innovation helps you stay that deflation, Wargo said. Take portable CD players. Ten years ago, you could buy a decent one for $50. Now, instead, people are buying $300 MP3 players. "The benefit of new technology is allowing the industry to grow revenues at a substantial rate. (Consumers are) willing to pay more for a new product, (but you must) convince them to by the new product at a premium over the old product," he said.

The article talks about innovating rather than becoming a commodity play.

According to the article, Apple as an example does two things: It innovates, and it gives customers what they want.

"That's sort of the secret formula for success that the book talks about," said Bailey.

As we're into the summer, here's a great feature article on Scott Ehrlich, who founded Red Tie Inc. and launched Impulse Media, a Seattle-based consulting company that helps clients predict and capitalize on the intersection of new technologies and media.

Scott has more than a decade of top-tier television and Internet management experience, serving in the senior management teams at Real Networks, Rivals.com and News Digital Media (Newscorp/Fox).

I had the opportunity to work with Scott twice - at Rivals.com and at RealNetworks. He's a brilliant digital media strategist, great to work with and certainly one of a kind.

Who else but Scott Ehrlich would have his office on a 46-foot powerboat named the Impulsive? Scott typically spends three days on the road with clients such as Sony Pictures Digital Networks, ABC News Digital Media, DivX Networks and iFilm Inc. The rest of the time he is in Seattle, holding meetings on his boat, and working entirely from three pieces of wireless technology: a laptop, a BlackBerry and a cell phone.

Concert webcasts and online vintage performance clips are gaining traction, according to this article in The New York Times.

What role, if any, will be carved out for fans who take their own pictures and "bootleg" video at concerts? My friend and former co-worker from RealNetworks, Erik Flannigan, is quoted for this article. (If you know Erik, I think you'd agree that he is a top expert on the subject of fans capturing various types of media at concerts.)

Erik Flannigan, general manager of America Online's music, film and television content, said that at a big arena performance these days "20,000 people walk through the door." He added: "How many people who went to that show walked out with some kind of media captured? They called someone, they took a photo. Why not harness that and turn it into something?"

Last year's U2 tour brings to mind photos, audio and video captured by fans with camera phones, digital cameras, DAT and mini-disk recorders - and posted to fan sites immediately after each show (and some even during the shows). As a fan, it was fun seeing the results of this grass roots effort.

What drives 1% of fans to capture and share content? I think it's as much about the hunt for content as anything else. And for the rest of the fans who seek and consume this fan generated content: it's very much about re-living the concert experience and collecting. This isn't the type of content that you tend to listen to or watch again and again.

I've got to say, though, there's something about the experience of going to see a band live that isn't captured in the online viewing experience of an entire concert webcast. But that's not just a matter of web video: I find that most professionally produced concert DVDs are of only marginal interest to me - even from my favorite bands. (Notable exceptions: Fleetwood Mac's "Say You Will" tour DVD; and U2's "Vertigo" tour DVD.)

Like many things music, I prefer a concert CD with audio - a passive listening experience - vs. the active viewing experience required of a DVD. And who has the patience to watch a two hour concert on their computer?

Some companies have tried charging admission to view concert webcasts online. I am a big fan of live music, but quite frankly, I'm not inclined to pay to watch a webcast of even my favorite bands perform live.

I think the better bet is for bands to put short form video clips of their live performances out onto the web as a means of connecting with their existing fans and reaching new fans - and a way of building interest in going to a show in-person.

Related Link: Concert, rehearsal venues get wired