Digital Media Market Place

Just 10 years ago, here was the entertainment landscape in the US

  • TV = Mostly passive watching. Most people buy cable TV service that has tiered bundles for channels. Generally low, medium, high priced bundles with options for sports packages and international channels. TV and movie production houses and TV broadcasters still had it pretty good. Business was simple and generally had a symbiotic relationship.
  • Internet = Broadband awakening, but for the most part web browsing. Video was out there but no one was really making money selling movie downloads.
  • Netflix was already getting traction by starting a monthly subscription to renting movies, but sending DVD in the mail to it’s customers. Blockbuster hadn’t taken any effort to stem the loss of customers due to Netflix.
  • Apple was selling music, but wasn’t selling movies yet. No iPhone, no iPod Touch, no iPad. Certainly no Android.
  • YouTube wasn’t even founded yet, and certainly not owned by Google.

Fast forward to today. It’s a movie, TV and internet melting pot.

TV and Movies

Watching TV and movies at home has changed dramatically. More and more people are being entertained by something other than their TV. YouTube and iTunes took eyes off the TV and iOS and Android devices take eyes away even more. Blockbuster is bankrupt. Redbox has traction.

The game changers are really Apple and Netflix

Netflix is the DVD and over-the-top streaming king in the US. Here some inforgrapics from Sandvine:

 

 

Apple is the king in over-the-top VOD and rentals. What really sets Apple apart from is rivals, is that it’s a true global company. See this report from MacStories.net.

Because they are sharing revenue with the production studios, there isn’t any conflict there. But the MSO’s are losing money and it’s costing them more than just lost sales. Which is why the cable companies and Netflix are at odds.

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