I've talked a lot about the power of how digital media and direct to consumer will start to penetrate the mass market over the coming years – but for early adopters that time is most definitely here now.. If you are a retailer or reseller in the Entertainment sector – you better hold on to your boots and have some very smart thinkers helping you shape where you play a part in the Digital Future..
Microsoft's approach last week to release Grand Theft Auto – The Lost & Damned Episode 1 - as a download only to XBOX Live may have gone under the radar by most – but to me that was the discussion that I had with Sony’s Playstation division back in the days prior to the launch of the PS2 – where I talked to them about broadband penetration and when Sony could deliver a D2C proposition. Back then although we knew that broadband would penetrate – the idea of avoiding a retailer and delivering direct to the consumer over the internet was in someway a bridge to far. The games were GBs in size it could take days for it to come down the pipe. FFWD to 2009 and Virgin delivers 50Mb broadband speeds now – and technology is such that we can deliver a progressive download that delivers enough of the game for the user to start playing before its downloaded entirely. I had another challenge for Sony back then was – “Pay as You Play” I had thought that by that time would the kids of that generation really care about having a stack of games that cost them £50 that they may either play until their eyes bleed or – actually play a few times and then lose their money as they trade it back in – why not let them pay as they play – slicing up the game in such a way that they have 20% of the game for £10 – and as they complete they move on to the next step – I also showed them that in effect a £50 game would now become £60 actually costing more if the user ended up playing the entire game – as well as delivering hidden elements, community aspect, more maps and levels that – heaven forbid could be designed and adapted by other developers by opening up parts of the games SDK? (Look at Nintendo’s Wii Ware as a close example) – This was of course back in 1999!!!
So FFWD onto 2009 10 years later – and I tip my proverbial hat to Microsoft for entering this space with such a high profile game such as GTA – just as music retailers watch their physical formats vanish from their stores – and deliver direct to a consumers PC – the entire games industry is moving this way slowly and steadily. Next step I hope that we can work with the Movie studios to deliver Worldwide Premiers of movies direct to peoples homes – think of all the people that cant get out to cinema because of children, disability etc.. – as per the above business model – say to a consumer – pay £25 for a “Golden Ticket” and then deliver the Worldwide Premier of Batman – WOW what a compelling offer for the consumer – almost creating an “at home event” friends family around the 50” HD LCD then as its hits the cinema {{ BEAMED DIRECT TO YOUR TV}} – this would help the business model of the movie industry where they will start to see a diminished set of sales as we all move into digital movies – and as per my first example – why have a stack of plastic? – stream the movie and I’ll pay to watch it when I want to – therefore why do I need to purchase more plastic to watch it once or twice if I'm feeling that way inclined…
These ideas to some are futuristic and way off – maybe because in part its down to peoples perception and understanding on where these new business models are and monetisation – however the technology, ideas and a whole new host of business models are already here!! Albeit rattling around within frustrated futurists and strategists that are speaking but seems that no one is (or wants to listen)
