Timely analysis:
Sony's purchase of Grouper is about market research, not market share.
Later in the post:
That's where Grouper comes in. The success of YouTube (and Grouper) scares the studios because it shows the market no longer values the slick production values of major films. This, along with global marketing, is the major strength the studios have long thought they brought to the film business. If some kid can get hundreds of thousands of views of a video showing him lighting farts, how can Sony compete with that? They can't.
So Sony is trying to join the enemy. For very little cost, Grouper will help them see what works and what doesn't in this new medium.
Read the full post... and seriously consider reading The Long Tail, which includes insightful analysis of the future of movies as well as other types of digital media.
Source: PBS | I, Cringely . August 24, 2006 - The Frank Caliendo Effect
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