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Oct182011
The role of the disruptor is not to make life easy for the disrupted
I am following a discussion about business model innovation in the entertainment industry. In one of his blogs Mike Masnick is paying attention to "The Lack Of A 'Golden Ticket' Business Model". As he says it "Doesn't Mean You Give Up And Go Home".
Mike explains how a disruptive business model works. "The disrupted whine and complain about how the disruptors haven't shown them how to continue making the same monopoly rents they made in the past. But that, of course, ignores the nature of disruption. Disruption doesn't work by having someone come along and show the legacy players how to exactly replicate their old profits. It's the exact opposite of that. Disruption is when others figure out how to break down the barriers to do something more efficiently, and undercut the old business model. But that doesn't mean that there's anything wrong for the underlying benefit that people get.
- The lack of a golden ticket most certainly does not mean there are no business models
- Those who are embracing new business models are finding plenty of opportunity to do amazingly well
- It involves hard work and multiple streams of revenue
- It's not the old "sit back and let the cash roll in" model that the industry is used to.
Prince is one of the greatest rock stars on the planet. A living legend who has sold more than 100 million albums over 30 years. Last year he explained in an interview with the Mirror why he decided his new album would be released in CD format only in the Mirror. "There'll be no downloads anywhere in the world because of his ongoing battles against internet abuses." Unlike most other rock stars, he has banned YouTube and iTunes from using any of his music and has even closed down his own official website. He says: "The internet's completely over."
Mike's comment is clear. "More entertainment content -- movies, music, books -- are being made today than ever before. Anyone bitching and complaining about how the internet is "destroying" the industry isn't paying attention. What they should be focused on are all of the massive new opportunities created by this sudden glut of content, combined with massively more efficient (and often free) methods for content creation, distribution and promotion."
When you have anything to say about it, tune in. We are both listening!
Mike explains how a disruptive business model works. "The disrupted whine and complain about how the disruptors haven't shown them how to continue making the same monopoly rents they made in the past. But that, of course, ignores the nature of disruption. Disruption doesn't work by having someone come along and show the legacy players how to exactly replicate their old profits. It's the exact opposite of that. Disruption is when others figure out how to break down the barriers to do something more efficiently, and undercut the old business model. But that doesn't mean that there's anything wrong for the underlying benefit that people get.
- The lack of a golden ticket most certainly does not mean there are no business models
- Those who are embracing new business models are finding plenty of opportunity to do amazingly well
- It involves hard work and multiple streams of revenue
- It's not the old "sit back and let the cash roll in" model that the industry is used to.
Prince is one of the greatest rock stars on the planet. A living legend who has sold more than 100 million albums over 30 years. Last year he explained in an interview with the Mirror why he decided his new album would be released in CD format only in the Mirror. "There'll be no downloads anywhere in the world because of his ongoing battles against internet abuses." Unlike most other rock stars, he has banned YouTube and iTunes from using any of his music and has even closed down his own official website. He says: "The internet's completely over."
Mike's comment is clear. "More entertainment content -- movies, music, books -- are being made today than ever before. Anyone bitching and complaining about how the internet is "destroying" the industry isn't paying attention. What they should be focused on are all of the massive new opportunities created by this sudden glut of content, combined with massively more efficient (and often free) methods for content creation, distribution and promotion."
When you have anything to say about it, tune in. We are both listening!
October 18, 2011
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