Judeumeh's Blog

It’s been a while since my last post, but then nothing much has changed, perhaps because, in real terms, a few weeks is really not that long, even in the fast-paced world of digital technology and innovation. However, it could just be proof of that old saying: “the more things change, the more they remain the same”, right?

Although, on the surface, it might not appear that much has changed, there are evident signs of continuous progress in several areas, including: technology and innovation; user experience and social networking / media / business; mobility and data of the large variety (aka big data). Many other experts and analysts, across various media and other channels, do a great job of observing / commenting on these topics and trends that I won’t bother trying to rehash them here.

In any case, the point I really wish to explore is that such developments, trends and indicators seem to point towards a new value exchange paradigm and/or system, sometime in the not too distant future. This notion is clearly described by Tim O’Reilly, at the last Strata Conference, where he talked about a fundamental need to find better ways for “measuring the economic impact of the sharing economy”. Among other things, he asks the key question, in my opinion, of how to measure the real value of sharing, particularly where traditional economic value yardsticks, (e.g. typical financial metrics), are no longer adequate for the task. He also described the often unmeasured benefits to be derived from the sharing economy (e.g. enriching an ecosystem of which you are part), versus the sometimes destructive impact of a profit-led, financially measured system (e.g. the contribution of global financial institutions to the current economic shambles). It would appear in this new paradigm that the way forward would involve “creating more value than you capture”, which, somewhat counter-intuitively, actually works to your advantage.

Perhaps this paradigm shift will be most realisable, (at least for the content industry), via a strategy of diversification and multi-publishing, which together increases the likelihood of better traction / success for content, via multiple touch-points, partnerships and hooks to end consumers. A couple of examples, which describe real life scenarios in e-book publishing and music licensing, are outlined below as follows:

1. E-Book Publishing: A recent post on CopyrightandTechnology.com discusses Harry Potter’s DRM Free e-Book offering, which runs somewhat counter to conventional wisdom for publishing such valuable properties in fully DRM’ed electronic formats, for fear of piracy. However this works for Harry Potter on many levels, especially considering how this would complement and create further opportunities for their existing and future merchandising initiatives.
2. Music Licensing: An article in the Berklee Music Business Journal examined the pros and cons of Coca-Cola’s equity stake in a music licensing startup. On the one hand, a major global consumer brand partners with a music outfit to source original musical content for its marketing campaigns; on the other hand the artistes, (often independent, unsigned and eager to be heard), get an opportunity to gain access to Coca-Cola’s global marketing might – which beats anything a record label can provide these days. Verdict: Win / Win!
3. Streaming Movies: The key players in on-demand video streaming services, e.g.: Netflix, Hulu, Amazon (i.e. Prime and LoveFilm), and latterly Sky, all offer different value propositions to the consumer, but in my opinion, the winner/s will likely emerge from those that are willing to leverage multiple customer propositions / channels / formats (e.g. books, music, DVD and perhaps devices).

In conclusion, it is becoming increasingly harder to ignore such trends / evidence / indicators that suggest a move towards multiple consumer propositions (including pricing), multi touch points (channels / interactions) and multi-formats is rapidly gaining ground. This makes it even more imperative to find a better yardstick for measuring the real value of content, products and services for both suppliers and consumers. It seems to me that we’re likely heading for a post monetary value exchange and recognition system, and hopefully one that is more in keeping with the post-global realities of a digitally connected planet. I remain optimistic, and fully convinced that money is not, and perhaps has never really been, the best yardstick for measuring true value.