First we look at what happened to music, by that you can see what would likely happen to movie, TV programming, sports, gaming, etc.
By now, based on the 10 drivers( in the article “The Digital Transformation of Corporations” in Week 1 & 2), you should have a better framework to examine differences in between industries in terms of preparation for IT-impacted changes. Well, let’s specifically talk about the music industry here. It is the most highly impacted industry so far, and the first, and you should know why by now, as compare to manufacturers of bottled water. So, again, think about the changes, and how do you see it will play out in the future. What will be the business model. But don’t think you will get free music for long. There will be no industry if there is no viable business model that can generate revenue. If folks continue to download for free, there will be no more new music soon. You just have to play your Elvis LPs over and over and over again for the rest of your life!
So I want you to think about the shifts, in particular along the supply chain. That is the musicians, the labels, the retailers, and then you the consumer. So the best way to start is to think backward, as a consumer first, because like in most supply chain, the downstream side are driving a lot of the changes in the upstream side. The upstream providers are just trying to accommodate the demands of the downstream needs. So how would you consume music in the future. what is the new business model that is profitable for the industry and serve consumers’ needs?
so why did the music industry changed due to IT? first of all, it is never a good idea to fight what your consumers want, as they did. consumers did not want to buy CDs, but they were willing to pay(most) but just not the whole CD. but the labels in this industry said buy the whole CD or nothing. that was when Apple stepped in and said why don’t we do it via itunes etc. but then later the development of Cloud services change all that too. especially with SaaS etc.
We also want to talk to you about whether the changes to this industry is making the industry better or worse? They are not aways better, some bad sides will be pointed out as we discuss away. The point I want to make is IT advancement is not always good for us. That is why at times some people will consider it destructive.
Now, what about the rest of the entertainment industry? TV programs, movies, sports, etc? what business model will work in the future. remember if there is no money, there will be no industry.
So how will the Entertainment industry look like in the future. I always think it is interesting that some folks only like to watch on their mobile devices, in very short clips, like via Youtube. so if you are the movie industry, or traditional TV, how should you change, 15 min movies? the small screen is what bothers me the most, I want my 65″ still. Even though the Google of the world, via Youtube etc are making a pile of money, we are just simply switching longer TV commercials to shorter bursts. people still watch a lot of hours each day. It is like an addiction.
So how can music industry resurface? how TV, movie etc will change? how about live programs? those are interesting changes that we like to discuss here.
What type(s) of business model(s) are likely a winner? what about the subscription model Like Spotify and Netflix? what are the pros and cons of those? Can that work in the live programming world like sports?