Content Matters

The past week’s Consumer Electronics Show was filled with many big announcements.  The GYM trio rolled out their big guns in an effort to claim space in the personal entertainment market.

After reading a few dozen press releases and blog posts, all I could think was “is this it”?  Microsoft showcased its portable Windows Media Center, Yahoo launched an online reality show, while Google launched a new proprietary video player software, along with its premium video store.  So, what’s available in the premium video store?  NBA games, 24 hours after they’ve been played, some Sony BMG videos, and a slew of CBS content including Mannix, MacGyver, the Brady Bunch and I Love Lucy.  Hmmm.  Sounds like what I used to find on television at 2am when my daughter was a baby and wouldn’t fall asleep. 

Video on Demand is interesting.  Allowing users to download videos to an iPOD is cool (assuming the DRM systems allow that) and I would guess we’ll start seeing some users watching video during their morning commute, instead of just listening to music.  But these steps are hardly changing the way that consumers interact with content.  I think these announcements added together have less of an impact than Tivo or Netflix.

If we want to change the way that consumers use entertainment content, the content owners are going to have to change their models.  When we see first run movies being made available on DVD or via download the same day they open in the theaters, that will begin to impact user behavior. 

I also wonder how Google will fair in this market.  Their technology driven approach works well for text-based content, where the better algorithms can equal a better solution.  Video’s different.  I don’t think search is the key for video.  Instead, learning behaviors are more interesting.  Use of AI or similar models, in the mode of Amazon’s recommendations, combined with Tivo-like auto-recording of things it believes you might like would seem more relevant to me.  In the meantime, creating a portal to sell ninety-nine cent repeats of network TV just doesn’t get me very excited and could be a distraction for Google in the near-term.