Digital Content: It’s not Access or Ownership but BOTH
Throughout this country, in conference room after conference room and boardroom after boardroom, executives of content companies strategize how to respond to the alarming trends associated with owning physical media content. This has been mainly reflected in the downturn in CD and DVD sales. More recently, games have been added to the list. Many in the media industry are frustrated by the slower than forecasted growth of electronic sell-through or download to own content. And, specifically in the music industry, many are split between two ideologies for monetizing digital content – Ownership vs. Access.
While many believe that Spotify and/or Mog are going to transform the music industry and somehow replace the revenue from the fast eroding music purchaser, I am doubtful this approach will save the industry. Furthermore, this dialogue camouflages the true problems with digital sales. In the physical world, Ownership and Access are clear cut user experiences each with their own value proposition. In the Digital Age content is easily available through illegal file sharing, and digital ownership experiences are limited and governed in a way that challenges the integrity of the intended experience. Therefore, if media executives are committed to electronic sell-through or download to own content, they must re-examine how they define digital ownership and encourage meaningful innovations.
Innovation in eCommerce: Commerce 2.0
Earlier today, I read an interesting post by Josh Kopelman of First Round Capital and subsequent comments from Fred Wilson, at Union Square Ventures. Both men are well respected early stage investors and have demonstrated significant investor acumen.
Josh Kopelman pointed out some fascinating empirical evidence to support the need for massive innovation in the ecommerce marketplace.
ESPN Expands its Global Digital Media Presence
Earlier this week, ESPN expanded its motorsports digital content business through the acquisition of Racing-Live.com. Racing-Live.com covers Formula 1 (F1-Live.com), Moto GP; Superbike (Moto-Live.com), Rally (Rally-Live.com), off road Rallies (Raid-Live.com), Endurance Sports-Cars and Kart racing. This announcement follows the acquisition of Jayski, a NASCAR gossip site in 2007. Racing-Live.com strengthens ESPN’s global business and provides [...]
NASCAR Sponsorship 2.0
Over the past few years corporate marketing and advertising budgets have made a dramatic shift from Old Media towards New Media, which provides measurable customer acquisition with a recognizable ROI. Today, current NASCAR Sponsorship programs are structured much like Old Media, which fails to present corporate marketers with the value presented through “new media” channels. [...]
