Tivo business model may just be the start

Posted by
August 15, 2005

There are several business opportunities that are transitory. For instance, dial-up internet companies. With the availability of DSL and cable internet, they become almost obsolete. Similarly, Netflix, Blockuster, and others who provide video rental are also in businesses that are doomed as a trip to the store to browse and pick a d DVD maybe only for those who cherish a hand-written greeting card.

 That brings me to the topic of Tivo. According to unconfirmed reports, Tivo is testing a service that would allow us to bypass the cable company altogether and download TV programs directly from the Internet. Let me explain why this is such a big deal.

The way we currently access content in video form has enormous inefficiencies – meaning that we are paying for companies who want to keep the system inefficient because it is profitable for them. And from what we know about how market forces work, we know that it will not last too long since the model has already disappeared in the world of text/image content and is gradually disappearing in audio content. We will soon reach a point that anyone who is capable of offering video content will be able to do so by publishing online and make it available either for free or for a price. In other words, the traditional television stations will need to do the same. The cable companies will simply become what the name indicates – providers of cables for connecting to the Internet (until wireless access becomes available everywhere, almost like a cell phone signal). At least that is the vision we have developed at iProceed for the future of how entertainment products will be delivered and consumed.

There are enormous benefits to consumers and that will drive this forward. For instance, if I want to buy a book I can shop around for it and buy it at the lowest price anywhere on the Internet. In relatively near future, if I want to watch a program, I should be able to shop around for it and then simply download it by paying the provider directly.

So what does it mean for you?

    Along with text and photos, consumers will increasingly seek audio/video entertainment online. We believe that this will be a hug growth opportunity for media companies and even small publishers.
    As cable companies become mere providers of a utility, the best growth opportunity is in media creation – not in distribution.
    Market forces, particularly those that derive their strength from technology, are far more powerful than you might want them to be. Stop fighting them. Instead see them as new business opportunities.

Recommended article: New content delivery channels

Growth opportunities, Technology

If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.

Comments

No comments yet.

Sorry, the comment form is closed at this time.