Posts tagged ‘dying’

A dying web, or a dead one?

App icons flying out of an iPhone

Billions and billions of customers served

While apps didn’t hit the 13 billion mark in the article I wrote in October (they did hit 10 billion in January ’11 so frankly, that’s close enough), some equally staggering stats have come out about Apps.

  • An estimated 4.5 billion apps sold in 2010, generating $6.8 billion in revenue
  • An estimated 15 billion apps sold in 2011, generating $19.7 billion in revenue
  • An estimated 21.6 billion apps sold in 2013, generating $29.5 billion in revenue
  • Of the nearly 400,000 apps live in May 2011, 62% are paid

While the numbers originally estimated in this October article were off, I believe the argument still stands.  Do you?

Here’s the original article:

I saw  on Gizmodo that 6.3 billion Apps from Apple’s App Store have been downloaded in just over 2 years. It took 5 years for music downloads from iTunes to reach this level.  This works out to be around 17 million apps downloaded each and everyday.

At this rate, the number of downloaded apps is estimated to reach 13 billion by the end of this year, the same as the number of songs downloaded from iTunes by the end of the year.  The fact that apps are reaching this big number at twice the speed of music downloads is pretty remarkable.

As a result, I’m beginning to buy Chris Andersen’s article in Wired Magazine where he argues the Web is Dead. (more…)

Digital induced madness

I’m feeling a bit snarky after this weekend.  Maybe it’s the weather, or the chaos in Egypt.  Or maybe it’s because I am still so bemused, befuddled, bewildered and be-Fooled  at the whole concept of Digital Copy and why on earth studios are just so stubborn about thinking that customers give a damn about it.

I sat down with the kids to melt my brain to Despicable Me, and was subjected to a 3 minute trailer on how great Digital Copy is and how it’s the future of entertainment on the go.

As I watched the sleek and sexy production, I had to go “pffft” (meaning “as if”) when the trailer walked through a few use cases that no one on earth is going to ever do.  They showed a couple at the top of Mulholland Drive in a convertible, overlooking LA, with their laptop on the dash and watching a movie.  “Take it with you where ever you go” was the voice over.   I had to ask, who the hell is going to bring their laptop so they can watch a movie at the top of Mulholland Drive?

And then, it cut to a scene with a mother shopping in the store while her toddler, safely strapped in the cart, watched a movie on her mommy’s cell phone.  “Now moms can entertain their kids any time on any device.”  What?!  What mom is going to give a toddler a cell phone so that they can watch a movie in the store?  Wait a minute – maybe they are on to something!  With Digital Copy, you never even have to make eye contact with your kid since they will be glued to all your devices to watch movies!

OK, I get the point – watch movies wherever you are.  I’m all for it.  But really, what customers really care about watching movies where ever they are?  Aren’t movies best enjoyed at home, with your family or friends, on a screen that doesn’t cause your eyes to hurt, or your neck to ache, or your wrists to cramp?

This is the crux of the issue for all digital entertainment, Digital Copy prominently included, and for the dozens of companies/consortia out there trying to do something about it.  We’ve got to ask ourselves, who really cares?

By the way, Despicable Me was great.  And the best part was watching it with my kids on a lazy Sunday afternoon.

Rentership beats ownership

There has been lots of recent buzz in the press about Redbox announcing its digital service in 2011. Today, Wal-Mart announced that it is (finally) doing something with its $100 million acquisition of Vudu. These announcements got me to thinking about the not-so-subtle shift  from Ownership to Rentership and my personal conflict of what this is doing to the entertainment industry.

Redbox and Wal-Mart are up to something

As way of background, Redbox insinuated that it would add a Web-based rental service to its network of DVD kiosks next year.  This means if the Coinstar-owned company is going to deliver on its promise, Netflix may have a competitor sometime in 2011.

Wal-Mart announced with that Toy Story 3, customers will receive a download code that they can use on their nearest Vudu player to stream the movie at any time without the disc involved.  Does this signal that Wal-Mart is finally getting into action in digital? Maybe Wal-Mart will do something else with Vudu, like team up with Redbox.

These movements tell me that big players are laying the groundwork to help me rent more content than ever before.

From Ownership to Rentership

A great article in Wired talks about how we are slowly moving away from an Ownership Society of the American dream of owning stuff like houses, cars and collections of CDs and DVDs.  Instead, we are moving to more practical Rentership Society where we can enjoy unlimited choice that comes without the cost burden of owning stuff.  For those of you who have thrown a ton of cash into a kitchen remodel only to find out that you break even on the sale of a house, you understand.

While I’m holding on to my house and not moving into a rental down the street, my personal shift from Ownership to Rentership is really clear in how I consume media.  I no longer faithfully go to Best Buy every Tuesday to get the latest.  I now wait a bit, sample stuff from iTunes or Grooveshark or Last.fm or Pandora and then, maybe I buy it.  Instead of buying the DVD, I rent it from Netflix.  And NOW, as I recently wrote, I am increasingly viewing stuff through Neflix my AppleTV.

What about entertainment?

But wait a minute.  I am conflicted.  I am a happy consumer, but what does this do to the entertainment business?  With labels (and just forget about artists) making fractions of pennies for each stream, subscription service revenues don’t really amount to a hill of beans. With this trend, artists will have to work a helluva lot harder to perform their music live and make money.  With more than 50% of a studio’s revenue coming from selling movies and TV, well, let’s just say that renting does not make them much money either.  At this rate, studios stop making movies.  Scary stuff.

So what’s the entertainment industry doing about it?  Lots of companies have invested in consortia like UltraViolet and Keychest to answer these questions, but what are they thinking in terms of rental?  I am skeptical of industry groups doing anything in the best interest of the customer.  Afterall, content owners just want to protect their bottom line. The entertainment industry needs to remember:

Everything, everywhere, all the time. That’s the dream of the Rentership Society. And we’re almost there. If you want to be able to possess some things, in some places, some of the time, well, keep on buying. But I vote for infinite abundance, on demand. Doesn’t that sound like the new century’s American dream? – From Wired’s Abandon Ownership!

Are you moving from ownership to rentership?  What does it mean for the industry?

A dying web, or a dead one?

App icons flying out of an iPhone

There have been billions of downloads

I saw in a recent article on Gizmodo that 6.3 billion Apps from Apple’s App Store have been downloaded in just over 2 years. It took 5 years for music downloads from iTunes to reach this level.  This works out to be around 17 million apps downloaded each and everyday.

At this rate, the number of downloaded apps is estimated to reach 13 billion by the end of this year, the same as the number of songs downloaded from iTunes by the end of the year.  The fact that apps are reaching this big number at twice the speed of music downloads is pretty remarkable.

As a result, I’m beginning to buy Chris Andersen’s article in Wired Magazine where he argues the Web is Dead. (more…)

Savvy

Sleek, Smart, and About the PR/Media World Today

Gigaom

Technology news, trends and analysis covering mobile, big data, cloud, science, energy and media

%d bloggers like this: