It came as no surprise to many analysts that Microsoft has had a disappointing few months, with very slow holiday sales of its Surface tablet and continuing tepid-at-best reviews of Windows 8. PCs and Windows software are in trouble – so much so that Microsoft is investing billions to prop up one of its channels to the market – Dell, and some predict a Kodak-like demise of Microsoft. It also comes as no surprise to anyone who, like me, turns on a Lenovo Think Pad (or any other PC) and resumes Microsoft Windows. Depending on how I exited my computer, I may have to wait as long as 5 minutes before it is usable. A similar delay occurs throughout the day when my computer falls asleep. Consider that my employer (IBM) has 400,000+ workers across the globe experiencing these delays every day, every…
Will Netflix’ business model crash as entertainment streams converge?
Netflix’s stock price is falling, fast. My take is that the decline has much more to do with the long-term viability of its business model than the stated cause – recent defections in subscribers owing to a change in its pricing formula and a (since averted) break-up of the company into two parts. Here’s a business model lens on Netflix’s issues. Boundaries are melting in the entertainment world as content that used to be available in only one way becomes accessible in multiple ways. We can see TV shows on the Internet, read physical books on-line, use videogame boxes to watch movies-on-demand and buy hardware solutions that transfer data streams acquired on our computers to our TV screens. Hollywood’s new UltraViolet System will give consumers free Internet or cable access to any purchased DVD. What’s the implication for Netflix of convergence to one…