How Content Companies Should Deal With Apple In An iSlate World

3 Comments

Arnon Mishkin is a partner with Mitchell Madison Group, where he consults for media companies on improving legacy businesses as well as making the internet profitable. Prior to MMG, he was a partner at the Boston Consulting Group, where he did some of the firm

3 Comments

David Faiman Odessa Mama Rec

Sorry Arnon, I think you have now idea about the music business. If it wasn’t for Itunes, there would be very
little of of the ‘music business’ left, by now. Certainly, many independent labels, like ours, wouldn’t be able to survive without them.
As for ‘Apple’s tollgate has accelerated the destruction of their business model’,
I agree with Bob. Online piracy destroyed that business model. For example, in the mid-90s, in SE Asia, albums/compilations often sold hundreds of thousands, but by 2000-2001 many labels were out of business. Could anyone imagine today, a compilation that could sell 900K LEGIT copies in Thailand alone??? I don’t think so, yet it did happen.

acollmer

In a tablet world where all communication moves from text to video, this is an interesting company to keep an eye on: http://www.nyvs.com – basically an online film school for the masses.

they seem to be focused on expanding video literacy globally, and if you need video for everything, this site could grow into an interesting platform.

bob

Is this meant to be revisionist history??? Apple didn’t tear apart the ‘original bundles of records for consumers who were not already pirating the music, thereby reducing the importance and profitability of the record companies’. Napster did, driven by the major labels refusing to
a) engage with digital meaningfully
b) insist on putting out crappy CD albums with only one or two decent songs surrounded by fillers

Apple has only ever gone for an opportunity to make money from meeting public demand. Can the same be said about the media companies themselves? The same companies who operate on the strategy of creating demand, then exploiting scarcity (which btw doesn’t work in the digital world).

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