Over the past few decades, technology has come and gone with many inventions causing disruptions in how we create and use media. It’s been a wild ride. But some recent developments are worth noting.
In the early years of adoption of media, technology was expensive. The barriers to entry were high and with few players. Back then, producing a half-hour video cost around $100,000. So the technology inventors, i.e. Sony and Panasonic, saw an opportunity to develop cheaper and simpler technology. They thought the more people who could produce and distribute videos the better. That started the race to the bottom for the lowest price.
Then the invention of the personal computers complicated matters further. Here was a new technology traditional media companies didn’t have control over. So everyone goes merrily along with driving for a cut-rate price, competing for market share. Sony gets into computing; computer companies try to get into video. Soon everyone got into the game.
Boom, in comes the Internet and that really pushes things over the edge. Technology is such a bargain that everyone can afford a PC, and all they need is an Internet connection to experience and produce their own media. Suddenly huge amounts of data are available everywhere 24/7 for practically free and old paradigms collapse.
Well, just like with anything, hitting the bottom was inevitable when people stop and realize that cheap doesn’t necessarily mean better. There are limits shall we say to a good thing. If businesses can’t make money off it, they will stop doing it. Apple is a good example. They don’t compete with the bottom feeders and make cheap; they make excellent. Turns out it’s become a winning formula.
So what’s happening now that is going to disrupt media again? Exclusivity – that’s where there’s more money to be made. Apple knows this through their development of special apps for the iPad and iPhone. Android from Google is following suit with its own app stores, and Amazon lags just behind. What was once an old paradigm with the established publishing companies is new all over again.
So what does that mean for you? It means there will be more restrictions to access the really good stuff. It means the barriers to entry will be higher to use and create. Sure the Web will always be there for the masses, but those seeking higher quality are now turning to apps. Why else is Apple making huge profits? They know it’s worth it to be top notch.
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