Why Aggregation & Context and Not (Necessarily) Content are King in Entertainment

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7 Comments

Bear Stearns analyst Spencer Wang has come out with a report on, well, Long Tail, but this one focuses on what he calls the mid part of the content and distribution value chain, where he sees the most value in the long run…that mid part is the part of aggregation-and-context players in the market, with the theory that “Value of aggregation and brands increases with exponential increase in content choices.”
This chart below has some detail:
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7 Comments

Pramit Singh

It has always been the content packaging and distribution guys that have won in content. Content producers have always lost till yet.

Dennis Faust

We've noticed that users are not only more responsive to but are also more entertained by contextually presented content. If presented within context even advertising goes from being an annoyance to adding to the user's experience. The resulting product, Sideklick, works as a contextual TV for IM. While the user IMs they are creating context and that context drives what content is presented to them. It's much more difficult to describe than to experience. Kids get it in seconds. Hyper aggregation and contextually presented content are going to rule because the user gets more entertainment with less effort. Filtering out garbage and searching require enormous effort.

Gary Baker

A very thoughtful presentation.

Clearly the shift is in motion and those who make access to content fast, easy and relevant will advance the value to individuals, content providers and advertisers.

Gary

Steve Poley

Market capitalization and company valuations support “Aggregation & Content Packaging” as the most valuable link. What a clear illustration of a complex situation. Nice job.

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