Rafat Ali from PaidContent.org quotes Bear Stearns analyst Spencer Wang’s report on, Long Tail, but focuses on what he calls the mid part of the content and distribution value chain, where he sees the most value in the long run…that mid part is the part of aggregation-and-context players in the market, with the theory that “Value of aggregation and brands increases with exponential increase in content choices.”
This chart below has some detail:
An article by Michael Arrington over at TechCrunch.com explores the death of broadcast (linear) TV. Some research indicates that online video watchers watch less TV, well duh.
The key tipping point will be when a startup is able to distribute proper television content over the Internet legally. People will begin to abandon their cable tv subscriptions in favor of Internet distribution. MobiTV is in the best current position to do this – they have a ton of cash and are only a few deals away from being able to offer the equivalent of a cable television subscription over the Internet. And The Venice Project may also win. iTunes will continue to pursue their pay per show model, and that will also take market share.
I realized something was different the first time my wife and I watched Youtube for 2 hours one evening, forgetting to turn the TV on.
One of the issues that every company faces is how much information to share with customers and employees. At work, there is a constant battle between disclosure of raw and immediate information and processing or summarizing information to ensure it accurate and will be understood.
“Perhaps the most interesting of these is the shift from secrecy to transparency. The default communications mode of companies has traditionally been top-down, with only executives and official spokespeople permitted to discuss company business in public. The standard rule, explicit or not, was “That which we choose not to announce is not to be spoken about.” Aside from some special exemptions, such as conferences where those employees trusted enough to go chatted guardedly with outsiders, employees were cautioned that what happened at work should stay at work. Loose lips sink ships, etc.”
One of my acquaintances is Jonathan Schwartz, CEO of Sun Microsystems. Jonathan is a prolific blogger and a pioneer for CEO bloggers. Check out his blog here: http://blogs.sun.com/jonathan/
It’s a big day for Moore’s Law. I’m not sure anyone else has noticed this, but by my calculations we have in the past few months reached the penny-per-MIPS* milestone. Intel’s Core Duo running at 2.13 GHz now costs around $200 at retail (it’s around $180 at volume), but can do about 20,000 MIPS. I remember my first 6 MHz 286 PC in 1982 that did 0.9 MIPS. I have no idea what the CPU cost then, but the PC it came in cost nearly $3,000 so it couldn’t have been cheap. Say it was around $1,000/MIPS back then. Now it’s $0.01/MIPS. I know I shouldn’t be astounded by Moore’s Law anymore, but that really is something.
According to ABI Reasearch, the market for home networking and connected entertainment devices will grow from $14 billion in 2005 to more than $85 billion in 2011, ABI forecasts. This “astonishing” growth rate will be driven by a desire for “pervasive connectivity” in applications such as multi-room PVRs, place-shifting, and networked gaming, according to the market research firm.Another factor driving the market will be the use of home networks for video distribution by IPTV providers such as Verizon, France Telecom, and AT&T, ABI says. These and other service providers see home networks as a way to extend data services without the need for any rewiring, ABI says.In terms of unit volumes, ABI expects the total number of network connections shipped into the home market to grow from 247 million in 2005 to over 861 million units by 2011.
ABI Principal Analyst Michael Wolf stated, “This market has reached a major turning point. Home networking has moved beyond a basic broadband sharing model to one of networked entertainment and convergence across the PC, consumer electronics and communication devices. The emergence of enabling technologies such as 802.11n for wireless video distribution, HomePlug AV and MoCA as alternative multimedia network backbones, and DLNA media server and device interoperability software, are all solidifying the foundation for an explosion of new devices and applications based on a fully connected home.”
More information on ABI’s study, “Home Networking and Connected Home Market Analysis,” is available here.