Amazon is taking the digital book wars to an exciting level. First it was price discounts on earlier models and now it is content exclusivity. Their latest exclusive content deal is with DC Entertainment, owner of graphic novels, a perfect complement to the e-reader. And a move that has riled its leading competitor Barnes and Noble.
But I am sad to hear that B&N has responded in a very childish way. "Comic book industry blog Bleeding Cool reports today that Barnes & Noble e-mailed all of its employees yesterday and told them to remove all print copies of the books included in that exclusive from their shelves." The only people that get hurt from this move are B&N customers who are in the store looking for these print issues and B&N reputation and bottom line. How does removing these issues help you compete with the Nook? Frankly, it doesn't. It sounds like a pouty child taking back his or her toys.
I am a huge fan of B&N and I understand their displeasure. But if they believe that content is king, like I do, then they should work harder to build their own exclusivity partnerships. DC Entertainment is not the only game in town. But B&N needs to work smarter to attract other partnerships and exclusivity deals. For every DC, there are Lucas, The Simpsons, and other graphic deals to make. And Archie is just announcing its own line of superhero comics. And think beyond the box to video and audio opportunities as well. To pull print copies off the shelf does not grow your digital business. The game is young and far from over.
Monday, October 10, 2011
Apple Still Shines
Steve Jobs legacy will be felt for some time and Apple will continue to dazzle. Despite a mediocre response to the latest iPhone news, advance orders for the next generation of iPhone are doing quite well. "Apple Inc. said on Monday that pre-orders for its new iPhone 4S set a record last week with more than 1 million units snatched up online in the first 24 hours. The results top the previous one-day pre-order record of 600,000, set by the new unit's predecessor, the iPhone 4." That the iPhone is now available to Sprint customers is one reason, and there are many users that simply want the next generation of iPhone no matter what. The latest software update with Siri voice command may be the next winning idea for Apple.
And as Apple attracts more customers to its devices, it also attracts more users to its App store. It is a healthy business model that will enable Apple to continue to grow.
And as Apple attracts more customers to its devices, it also attracts more users to its App store. It is a healthy business model that will enable Apple to continue to grow.
Friday, October 7, 2011
Steve Jobs' Business Lessons
Steve Jobs has left an amazing legacy on the business world. He built success from failure and didn't let failure stop him. Others might have quit, but Jobs never did. It may be fun to list his products that failed, from the Apple III to Lisa to the Newton, but he also gave us the mac, iPhone, iPod, and iPad. He transformed the music industry and built a retail empire that hired workers and delivered superior customer face to face service. Amazing given that his products could be noted for not needing human interaction.
He taught us to "think differently" and to never give up. And he never stopped. He turned the movie industry on its ear with the rise of Pixar and changed Disney as a result. He like Walt Disney made you believe in magic.
Apple will continue to prosper as will Disney, but the legacy of Steve Jobs will be felt for some time. He taught us amazing lessons of perseverance and passion. He made us believe and to see failure as the road to success. Simply put, we should follow from his example.
He taught us to "think differently" and to never give up. And he never stopped. He turned the movie industry on its ear with the rise of Pixar and changed Disney as a result. He like Walt Disney made you believe in magic.
Apple will continue to prosper as will Disney, but the legacy of Steve Jobs will be felt for some time. He taught us amazing lessons of perseverance and passion. He made us believe and to see failure as the road to success. Simply put, we should follow from his example.
Thursday, October 6, 2011
Is Microsoft Buying Yahoo?
A simple question. Yahoo is down and lacking leadership, Microsoft needs to expand its footprint. Bing has not been the answer and maybe Yahoo can help. "Given the wide reach of both Microsoft and Yahoo independently, a singular entity would already come with a great degree of demographic overlap."
And that is the challenge facing Microsoft in any of their efforts. They have become corporate while entrepreneurial technological companies take risks and push new ideas. Microsoft needs a leader. It is what Steve Jobs was for Apple. He was a visionary, a risk taker, an idealist, who sought to "think differently" and follow his gut. Without him, the challenge for Apple is to enable that same sense of entrepreneurship and risk. For Microsoft, current leadership has not led by example, they seem to simply follow.
So while a Microsoft-Yahoo merger could provide some synergies, it comes with many challenges too. It would require new risk taking to succeed. Otherwise, it will be noted as another failed attempt by Microsoft to get beyond their Windows and Office product line.
And that is the challenge facing Microsoft in any of their efforts. They have become corporate while entrepreneurial technological companies take risks and push new ideas. Microsoft needs a leader. It is what Steve Jobs was for Apple. He was a visionary, a risk taker, an idealist, who sought to "think differently" and follow his gut. Without him, the challenge for Apple is to enable that same sense of entrepreneurship and risk. For Microsoft, current leadership has not led by example, they seem to simply follow.
So while a Microsoft-Yahoo merger could provide some synergies, it comes with many challenges too. It would require new risk taking to succeed. Otherwise, it will be noted as another failed attempt by Microsoft to get beyond their Windows and Office product line.
Wednesday, October 5, 2011
The Problem With Expectations, We Are Usually Disappointed
It is human nature for us to make expectations prior to outcomes. But I think for the most part, our fiction is always greater than the facts. It is when we are caught off guard that we are most excited. So it comes as no great surprise that yesterday's Apple announcement regarding the next generation of iPhones was dealt with the same way, large expectations, and little satisfaction.
But dig deeper into the announcement and the additional features of the iPhone along with another distribution partner in Sprint will lead to positive long term results. The problem with being an innovator is that your are constantly expected to be innovative. Likewise, the problem with being a comedian is that you are always expected to be funny. It is why comics sometimes deliver dramatic results to surprise and hopefully intrigue their fans.
Same too with Apple. It's only way to top expectations is to do something surprising. These press announcements don't allow for it; they encourage early expectations to be built and then fall into rubble. No, Apple needs to figure out a way to surprise its "fans" so that when it makes its next announcement it is unexpected yet significant. Perhaps that is what is up Apple's sleeve.
Yesterday's announcement will be quickly forgotten as financial results for Apple are released. Apple has the products, the pipeline, and the backbone to deliver content to their devices. But they need to stay innovative and unexpected as Amazon, Google, and others are on their tail.
But dig deeper into the announcement and the additional features of the iPhone along with another distribution partner in Sprint will lead to positive long term results. The problem with being an innovator is that your are constantly expected to be innovative. Likewise, the problem with being a comedian is that you are always expected to be funny. It is why comics sometimes deliver dramatic results to surprise and hopefully intrigue their fans.
Same too with Apple. It's only way to top expectations is to do something surprising. These press announcements don't allow for it; they encourage early expectations to be built and then fall into rubble. No, Apple needs to figure out a way to surprise its "fans" so that when it makes its next announcement it is unexpected yet significant. Perhaps that is what is up Apple's sleeve.
Yesterday's announcement will be quickly forgotten as financial results for Apple are released. Apple has the products, the pipeline, and the backbone to deliver content to their devices. But they need to stay innovative and unexpected as Amazon, Google, and others are on their tail.
Tuesday, October 4, 2011
Zune Is Out Of Tune, Microsoft To Focus On A Windows Phone
It seems another Apple competitor has raised the white flag. For other companies, it was to stop producing a competitive tablet and now for Windows, to not compete with the iPod. "We recently announced that, going forward, Windows Phone will be the focus of our mobile music and video strategy, and that we will no longer be producing Zune players."
So how will a user listen to music on the Windows Phone and why not keep the Zune as a brand extension? While Google and it's Android devices seem to have a strategic approach to compete effectively with Apple, Microsoft may be scattered. What is the Microsoft strategy for mobile and why isn't Zune a part of it? One hopes that Microsoft's history of failed product launches doesn't extend to the Windows Phone. But so far, the loss of Zune seems the rule not the exception.
So how will a user listen to music on the Windows Phone and why not keep the Zune as a brand extension? While Google and it's Android devices seem to have a strategic approach to compete effectively with Apple, Microsoft may be scattered. What is the Microsoft strategy for mobile and why isn't Zune a part of it? One hopes that Microsoft's history of failed product launches doesn't extend to the Windows Phone. But so far, the loss of Zune seems the rule not the exception.
Will Hulu Find A Right Price To Sell
It seems as companies have been kicking the tires of Hulu, they have been reluctant to pay the asking price. And while some bids have come close, the additional conditions asked to complete the transaction have proven stumbling blocks. "At stake is the question of whether Hollywood's content companies are ultimately going to be principal players in the new world of digital streaming, or whether they will remain licensors of their products -- outside vendors." That is to say, buyers of Hulu don't want to find themselves competing for streaming platforms with the eventual sellers of Hulu.
As streaming becomes easier to offer and costs to stream decline, distribution platforms become plentiful. A Hulu buyer should want some exclusivity in their content deals to market a competitive differentiation. And that may be needed in both their paid and free models.
What will the current Hulu owners do if they choose to not complete a sale? Perhaps incorporate Hulu into each of their own websites to give it more value. They will also have to figure out what content also gets shared with their cable distribution partners. Comcast, Time Warner, and others all want to offer this content on their VOD and streaming platforms to authenticated users. Clear competition against Hulu's own pay model. Should Dish buy Hulu, Dish would probably want to confirm that they have the exact same rights, if not better, for the content these owners are peddling to cable. A sticky place to be and one that surely complicates the sale of Hulu.
As streaming becomes easier to offer and costs to stream decline, distribution platforms become plentiful. A Hulu buyer should want some exclusivity in their content deals to market a competitive differentiation. And that may be needed in both their paid and free models.
What will the current Hulu owners do if they choose to not complete a sale? Perhaps incorporate Hulu into each of their own websites to give it more value. They will also have to figure out what content also gets shared with their cable distribution partners. Comcast, Time Warner, and others all want to offer this content on their VOD and streaming platforms to authenticated users. Clear competition against Hulu's own pay model. Should Dish buy Hulu, Dish would probably want to confirm that they have the exact same rights, if not better, for the content these owners are peddling to cable. A sticky place to be and one that surely complicates the sale of Hulu.
Monday, October 3, 2011
Consolidation In Cable To Compete Better
Strike the word local from the cable dictionary. In order to compete against telco and satellite services, the buzzword is consolidation. Comcast reorganized to three regions, Time Warner to two, East and West, and today it is Cox's turn. They first reduced from 11 to 9 and now are combining again into 7 operating divisions. Mark my words, by next year it will be under 5. As businesses mature, it is not necessarily a bad thing. Decisions rise up higher into the organization and local management goes away. What is left is service departments and a few customer service reps.
But in the face of competition, cable once argued that local was better. Where the telco and the satellite providers were national in scope, only cable cared about each community. Perhaps that strategy has proven less profitable as cable is now copying their competitors' national strategic management approach. But it also means less management jobs, and in today's economy, not helpful. Less costs for Cox and others, more operating profit.
But does this national approach spur more cable subscription? Can local help to better push cable over competition? It seems the approach is only about technological updates, more apps, mobile viewing, more on demand choice. Still, the missing piece may still be localism and should cable try to recapture this lost world, it might be a good differentiation move. Till then, stay tuned for more consolidation of cable operations.
But in the face of competition, cable once argued that local was better. Where the telco and the satellite providers were national in scope, only cable cared about each community. Perhaps that strategy has proven less profitable as cable is now copying their competitors' national strategic management approach. But it also means less management jobs, and in today's economy, not helpful. Less costs for Cox and others, more operating profit.
But does this national approach spur more cable subscription? Can local help to better push cable over competition? It seems the approach is only about technological updates, more apps, mobile viewing, more on demand choice. Still, the missing piece may still be localism and should cable try to recapture this lost world, it might be a good differentiation move. Till then, stay tuned for more consolidation of cable operations.
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