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The Innovator's Dilemma for TV Technorati icon

May 23, 2006 | Filed under: Internet TV

I wonder if TV companies are staring the ‘Innovator’s Dilemma’ straight in the eye at the moment. 

An example of the Innovator’s Dillema is of course the telecommunications companies (once again themselves staring at the beast).  When the telephone was invented the telephone network was not everywhere and users didn’t know they wanted it yet.  Because of these factors it did not have the short term revenue potential that sending cables had so the telcos of the day could not go there without losing money. It was hard for them to do both.

My work at Flickbook Pictures has taught me that it is practically impossible to distribute new video content BOTH through the normal channels AND through the Internet. The existing industry makes its revenue through surgically dividing the rights for different aspects of the IP to different regions.  As soon as something is released globally on the internet this cannot be done.

However, if Desperate Housewives was ONLY available on iTunes there is no way, today, that it could make more money for the producers than it can by selling the rights to TV networks globally, DVD distribution, etc.

For Flickbook Pictures it is quite easy. We have no existing market, so we can ride the new disruption and have the time of our lives. There will be no fall before the rise. It is up all the way. 

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Posted by Phil Morle at 12:08 AM | TrackBack (0)



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