In June and July 2007, two revolutionary products were unleashed on an unsuspecting world. The launch of the iPhone and iPlayer triggered a massive shift in the way people consume digital media.
Many households have since moved away from traditional TV towards more flexible ‘skinny’ bundles of video streaming services from Netflix, NowTV and Amazon Prime Video.
Today, for the first time in the UK, traditional TV and home video revenue have negative growth expectations (PwC Report – UK Entertainment and Media Outlook 2019-2023). This most recent shift follows the long-term decline of printed newspapers, driven by the rise of TV and the Internet.
Mass media is giving way to mass personalisation and there is no going back.
Huge market shifts like this, transform our world and present massive opportunities to those seeking them. Equally, the bell tolls for those who ignore them.
Hundreds of UK Start-Up and Scale-Up businesses are creating new services to exploit this shift. Most large media companies are exploring new ways of operating and competing with disruptors. As consumer behavioural changes accelerate, all require effective ways to innovate rapidly.
Significant questions remain as to where the digital media market is going. Which revenue model is best, subscription, advertising or something else? Social Media platforms hog consumer attention but in a world where online trust is eroding, will these gateways remain dominant? How might Augmented and Virtual Reality enhance live events? Are Human recommendations better than AI ones? The list of unknowns is endless.
Really, the only way to find out is to test the market frequently, quickly and cheaply.
Sounds obvious but it’s just not that simple.
Start-Ups must focus in quickly on the value sweet spots before funding runs out. Scale-Ups seek levers of growth to take their proven offering to the next level and escape the impending plateau. Established incumbents pursue transformation through acquisition, assimilation and home-grown creativity, however, many struggle with organisations that have grown valuing Mastery rather than Innovation.
Many businesses, whatever their size, fail due to classic mistakes. True innovators learn from these failures. They apply key principles, processes and tools to transform new ideas rapidly into high value solutions.
But what are the classic mistakes and how can they be avoided?
I’ll explore this further in my next post.