The media industry and the tech industry….same fate?Posted: March 1, 2005
When I started working in the tech sector in the early 80’s the dinosaurs (as they were known) still roamed the land. These were old style giants of computing such as Unisys, NCR and the old style IBM. These companies did everything. They made their own chips, designed their own hardware and networks; and wrote their own software operating systems and applications. Within five years the old order was being replaced by what the Economist described as the ‘New Computer Industry.’ This industry was made up of specialists. These were smaller more focused businesses like Intel, Microsoft and at the time Novell and Lotus. They each did one thing really well and brought about a revolution in the industry that brought the dinosaurs to their knees. Of course years later the so-called ‘new companies’ are becoming the giants.
I can’t help but see a parallel in the entertainment/media industry. For years we’ve had the giants of the media world. Companies like Disney and AOL Time Warner. In recent years, however, we’ve seen that thanks to technology just about anyone can set up a media business. It’s now common for a low budget movie to at least get nominated for an Oscar and we only have to look at the troubles the TV networks gave faced in recent years to see that this world is a changing. So who are the Microsoft’s and Intel’s of the media world? I don’t know and I wish I did as I’d surely buy their stock!