Apple, Wal-Mart and Destructive Innovation.

Posted by: Bruce Nussbaum on September 13, 2006

It’s remarkable to see Apple struggle to offer movies via iTunes— a new business model—and have Wal-Mart fight back to retain its sales of DVDs—an old business model. Movie-making studios, caught in between, are reluctant to offer up their movies to Apple for sale at lower prices than standard DVDs because they fear loss of revenue from Wal-Mart’s gadzillion stores. So Hollyood is caught in between business models, trying to make the transition without angering its biggest customer, Wal-Mart. We all know how this will end but we don’t really know who exactly will be left standing when it’s over. The fuzzy front end innovator will probably beat out the supply-chain back end innovator. And I’m betting it will happen by the end of 07. What’s your best guess?

And check out this great analysis of the Apple iTV, iMovies announcement by Mark Cuban. It gives you the lay of the land in the battle for the home-entertainment space. HP is a big player there as well as Apple.

Reader Comments

Gerard

September 21, 2006 2:13 PM

My comment is that the micro-economic model of customization (one song at a time, or in combination) will be the businessmodel for the future of publishing,whether music or content.

Post a comment

 

About

Want to stop talking about innovation and learn how to make it work for you? Bruce Nussbaum takes you deep into the latest thinking about innovation and design with daily scoops, provocative perspectives and case studies. Nussbaum is at the center of a global conversation on the growing discipline of innovation and the deepening field of design thinking. Read him to discover what social networking works—and what doesn’t. Discover where service innovation is going and how experience design is shaping up. Learn which schools are graduating the most creative talent and which consulting firms are the hottest. And get his take on what the smartest companies are doing in the U.S., Asia and Europe, far ahead of the pack.

BW Mall - Sponsored Links

Buy a link now!