The music, television, movie, and consumer electronics industries are grappling with the rapid evolution of technology and the increasing virtualization of content. To thrive in this new landscape, these industries must adapt and innovate. Here are the top eight strategies they should implement to harness technology and meet consumer demands effectively.
All content should be available on-demand, free of charge, but supported by advertisements. This model has been successfully implemented by platforms like YouTube and Spotify. However, traditional television networks often limit the availability of their content, which can frustrate viewers. By making their entire catalog available for free with ads, networks can increase viewership and ad revenue.
For those who prefer an uninterrupted experience, content should be available for rent without ads for a fee. Services like Netflix and Spotify Premium exemplify this model. Netflix, for instance, offers a vast library of movies and TV shows for a monthly fee, while Spotify Premium provides ad-free music streaming.
Consumers should have the option to purchase content without Digital Rights Management (DRM) restrictions. DRM has been shown to hinder sales by treating legitimate customers as potential pirates. According to a study by the American University Washington College of Law, DRM can reduce sales by up to 20%. The industry should follow the example of EMI, which allows DRM-free music sales.
Access to content should not be limited to computers. All playback devices, including TVs, game consoles, and smartphones, should have built-in wireless internet capabilities. The PlayStation 5 and iPhone are leading examples of devices that offer seamless internet connectivity.
When introducing new formats, the industry should aim for a single, standardized format. The Blu-ray vs. HD DVD battle is a prime example of how format wars can confuse consumers and hinder adoption. A standards body should oversee the development and selection of new formats, ensuring that only one format reaches the market. This approach would streamline the consumer experience and boost sales.
To enhance convenience, playlists should be stored on servers rather than on individual devices. This would allow users to access their favorite content from any internet-connected device. Spotify and Apple Music already offer this feature, making it easy for users to enjoy their playlists anywhere.
Just as consumers can purchase individual songs, they should be able to buy individual chapters of movies. This would allow for more personalized collections and reduce storage requirements. Implementing this feature would require players to pre-cache the next chapter for seamless playback, but it is technically feasible.
Consumers should have the option to choose between different bitrates, allowing them to prioritize either quality or storage space. Higher bitrates offer better audio and video quality, which is increasingly feasible with today's bandwidth and storage capacities. Services like Tidal already offer high-fidelity audio streaming as an option.
When introducing new physical formats, the industry should combine audio and video content. For example, high-definition video formats like Blu-ray have ample capacity to include high-quality audio tracks. This integration would eliminate the need for separate audio-only players and simplify the consumer experience.
Providing URL-addressable, ad-supported content can drive viral marketing. Platforms like YouTube and Vimeo allow users to share content easily, increasing exposure and ad revenue. More eyeballs on the content mean more potential purchases of related merchandise, such as concert tickets and branded apparel.
Implementing these eight strategies can help the music, television, movie, and consumer electronics industries navigate the challenges posed by rapid technological advancements. By focusing on consumer needs and leveraging new technologies, these industries can achieve unprecedented growth and success.
These insights highlight the importance of adapting to consumer preferences and leveraging technology to drive growth.
