The quest to deliver three-dimensional entertainment has been around since as early as 1838, when the the stereoscope, a device to view 3D images, was first invented. While the technology has since evolved, progress came in starts and stops, and 3D periodically faded from public interest. Thanks to recent innovations, and the commercial success of 3D films like “Avatar,” 3D is now making a comeback. In fact, if recent product launches and media coverage are any indication, 3D seems to be the buzzword du jour for the video gaming industry.
At the June Electronic Entertainment Expo (E3) in Los Angeles, for instance, Sony promised consumers an end-to-end 3D experience, with its Bravia TV 3D model, 3D glasses, and the launch of more than 20 3D titles for Playstation 3 by early 2011. Microsoft announced new 3D titles to go with the Xbox 360 and its “controller-free,” 3D motion-sensing Kinect device, while Nintendo unveiled the first 3D game console which doesn’t require glasses — the handheld Nintendo 3DS. Meanwhile, at the May Computex conference in Taipei, GPU and chipset developer NVIDIA debuted “3D PCs,” which allow consumers to play 3D games and view 3D photos, videos and movies.
However, considering that 3D gaming has been attempted before with negligible results –Nintendo’s Virtual Boy 3D game console, for instance, was discontinued a year after its 1995 launch – can 3D really stick this time around and help boost the gaming industry? This is a market which appears to be in decline.
According to the 2009 year-end and 2010 mid-year reports by research firm NPD Group, video game sales have been sluggish overall. NPD says total console, portable and software revenues amounted to $10.5 billion in 2009, an 11 percent decline from 2008. And as of mid-2010, total sales were only $1.1 billion, a 6 percent decline compared to last June. Note, however, that while software sales continued to dip, falling 15 percent as of June to $531.3 million compared to last year, hardware sales have started to pick up, climbing five percent to $401.7 million for the same period. NPD analysts are hopeful that the slate of new content and devices will drive sales, and a recovery, further.
Why Some Say “Yes”
One reason for a positive outlook is the increased availability of 3D technology in itself. Manufacturers are now coming out with a wide range of 3D-enabled devices, including TV sets, Blu-ray disc players, monitors, computers, camcorders and even mobile phones. Content providers and distributors are launching 3D television networks, dedicated 3D channels, and 3D copies of videos and movies. Software developers are working on more 3D game titles for consoles and PCs, while companies like Microsoft, Intel and IBM are working on 3D streaming for the Internet. Indeed, as more and more players across the media value chain invest in 3D technology, this creates synergy and momentum that could help leverage sales and propel innovation even further.
Another reason is that, according to a survey of 2D and 3D gamers by 3D certification and advocacy group Meant to be Seen (MTBS), consumers seem ready to embrace 3D gaming options. The group’s 2009 U-Decide Initiative found that 65 percent of 2D respondents thought 3D was “intriguing,” while 27 percent said they “must have it.” Only less than 4 percent thought it was “tacky,” and about 5 percent thought it sounded “uncomfortable.” Furthermore, while 3D glasses have often been cited as a consumer turn-off, only 12 percent of 2D respondents and 3 percent of 3D respondents said they objected to 3D glasses for video games.
Why Some Say “No”
Some critics believe 3D gaming still has plenty of hurdles to overcome before it breaks out of its niche. The topmost of the hurdles is price. On average, 3D-enabled TVs and PCs start at around $1,500 for basic models, and the prices can quickly go up for those with more sophisticated gaming capabilities. Specialized 3D glasses start at around $100. Consumers who may have recently purchased flat panel HDTVs may be unwilling to shell out new money for a new 3D TV set and its required accessories. They may choose to wait for a more affordable version or for more 3D content to be available in the market. As Microsoft's VP for Interactive Entertainment Business in Europe Chris Lewis commented in an August interview with Bloomberg Businessweek: “We are two to three years away [before 3D gaming takes off], till the price point comes down, till the experience is sufficiently social, that you don’t sit there with big glasses on and don’t talk to your family.”
Indeed, some market research firms predict that while sales for 3D TVs will no doubt increase as manufacturers roll out new models, they will likely do so at a conservative pace — at least for the near future. Research firm iSuppli, for instance, says only four percent (about 1.8 million out of 46.5 million) of total TVs shipped to retailers in the first quarter of 2010 were 3D. In fact, iSuppli predicts Internet-enabled TVs (IETVs) — TV sets designed to connect directly to the Web and display content — will be the focus of consumer upgrades in the short-term, and they estimate 3D TV sales will reach merely 4.2 million units in 2010 compared to 27.7 million IETVs.
That said, Nintendo’s 3D offering could be a good point of entry for casual gamers and those on a budget — not only does it forgo the need for 3D TVs and 3D glasses, but it will also likely be in the price range of Nintendo’s DSi devices (in the mid-$100s). Of course, it remains to be seen whether or not the Nintendo 3DS will be widely adopted by consumers. And if adopted by consumers, will other manufacturers introduce their own products, potentially making this new technology a game-changer for the video game industry?
Is online TV streaming about to displace traditional TV viewing? If yes, what consequences could we expect?
Recent data from media and communications analytical firm SNL Kagan shows Pay TV is losing customers for the first time ever, with subscribers dropping down from 100.4 million in Q1 2010, to 100.1 million in Q2. While it’s still too early to pinpoint the real reason for this decline, the growing ease with which viewers can access traditional cable and satellite content on their computers is raising two key issues that the TV industry needs to resolve, says IESE Business School Professor of Information Systems Josep Valor, who also teaches the Advanced Digital Media Strategies program at IESE's Institute for Media and Entertainment.
One of these issues is emission rights. Restricting access to content by blocking IP addresses as a way to protect and manage broadcasting rights worldwide (wherever those rights are sold) is fast-becoming inefficient. This is because more and more services, such as “TV to PC” or Internet “proxy” services, allow users to mask their IP addresses and access cable and satellite content online, no matter where they’re located. This means content owners would likely need to forgo “territorial exclusivity” in their contracts and start negotiating some sort of revenue-sharing agreement with these new “channels” as a way to cope, says Prof. Valor.
Another potential issue is the challenge to net neutrality. Prof. Valor believes that the enormous growth in Web traffic could lead to a battle for bandwidth, especially in countries where bandwidth is limited and many networks still rely on copper infrastructure to transmit data. If this scenario makes customers and companies willing to pay more just to ensure smoother and faster access to their chosen content — e.g., the streaming of live events — it could open the door for telecom companies to demand more “control” and to “discriminate” over which and what type of content they prioritize on their pipelines. This would especially allow them to set more profitable bandwidth-pricing schemes.
Read more about Prof. Valor’s analysis here.
This July, Facebook began beta-testing its new Q&A feature, joining the likes of Yahoo!, Answers, Ask.com, Quora and Aardvark (recently acquired by Google) allowing users to seek answers to their questions from their social network or the online community at large. Indeed, as more and more Q&A services enter the market, businesses should pay attention and get into the conversation.
Here’s why:
For one, online search is evolving. To optimize their rankings in search results, businesses must keep up with the latest keywords to use, as well as where to use them. Search engines like Google and Bing now include “social search” – a type of Web search that aims to deliver more relevant results by drawing content from a user’s social network – including Q&A forums, blogs, subscribed RSS feeds, status updates, tweets, etc. This gives businesses plenty of opportunity to build and manage their brand presence online, especially considering the huge amount of data shared on social networking sites (Note that as of June 2010, Americans now spend most of their online time on social networks compared to other online activities like gaming, e-mailing and watching videos, according to research firm The Nielsen Company).
Secondly, while users are indeed amping up social networking activity, they are also searching for advice from credentialed sources, not just their peers. According to The 2010 Edelman Trust Barometer (a trust and credibility survey by public relations firm Edelman), when it comes to getting information about a company, trust in “conversations with friends and peers,” along with trust in traditional media, declined over the past year in the U.S., U.K., France, Germany and the BRIC countries (Brazil, Russia, India and China). On the other hand, trust in a CEO as company spokesperson is recovering, while academics, industry experts and financial analysts continue to be seen as the most credible sources of company news.
This means that so long as companies don’t appear self-serving and don’t resort to market-speak, they might earn “brownie points” by offering their knowledge and expertise in Q&A forums and by cultivating a wide network of expert spokespeople who can address consumer questions regarding topics that relate to the company, its products and the broader industry in general.
Third, Q&A discussions can reveal consumer preferences and other valuable data that companies can use to generate leads and provide targeted advertising. Facebook’s “self-service ad system,” for example, already allows companies to deliver ads to a targeted group of users, based on their profiles and the stuff that they “like.” Facebook’s new Q&A feature, which will allow users to add polls – e.g., Which is better for your 8-year old cousin: Nintendo Wii or Xbox? – can only enhance the site’s algorithm and improve product recommendations, benefiting advertisers and consumers alike.
Of course, as in any good conversation, listening is key. Businesses that want to make the most of social search and Q&A sites should take the time to understand not just what’s being asked, but also why, so as to provide the best service to consumers, and to make the most sense when they do speak up.
Planning a trip or raring for a night out in town? Wherever you go and whatever you do once you get there, you’ll probably find a location-based mobile application to make the experience more rewarding and personal. By 2014, location-based apps are expected to reach more than $12.7 billion in revenues, according to a recent report by technology analyst firm Juniper Research. Location-based apps pinpoint your and/or your friends’ geographical position and then use the data to provide all sorts of services. Sounds promising, but what exactly does this mean for the travel industry?
One: Improved ease and efficiency for users
Using apps downloaded on their smartphones, travelers can now book reservations and automatically check into airports and hotels, get online maps and driving instructions, organize their travel itineraries, keep track of expenses, network and locate nearby friends and businesses, get up-to-date travel alerts, check the weather forecast and currency exchange rates, take advantage of personalized concierge services, and more. Indeed, a report released in 2009 by travel industry research firm PhoCusWright found that 67 percent of travelers and 77 percent of frequent business travelers with Web-enabled phones have used the mobile Web to find local services and attractions. The report also predicted mobile travel bookings to reach $160 million by the end of 2010. Examples of travel companies capitalizing in on this trend include Southwest Airlines, Hilton Hotels, and Kayak.com.
Two: The rise of “layered” information
Forget traditional guide books: There are now location-based apps that provide travelers with “audio walking tours” and even immerse them in “augmented reality,” wherein they get additional information about whatever sight or place they’re visiting by simply pointing their smartphone cameras to whatever they’re looking at. The phone’s camera basically “recognizes” the object or place and proceeds to “overlay” data (for instance, historical backgrounds and images, Wikipedia descriptions, travel reviews from other users, a list of nearby attractions and their distances, deals and promotions, etc.) onto the phone’s screen. Examples of travel companies capitalizing on this trend include travel publishers like Conde Nast and Lonely Planet, and Malaysia Airlines.
Three: Increased opportunity for targeted, “real time” ads
Users of location-based apps are likely more receptive to receiving targeted ads relevant to their current location and activity. A May 2010 survey by mobile audience media company JiWire found that 76 percent of mobile app users prefer free apps that have advertising over paying a fee for the same apps. Additionally, 84 percent would be just as likely or more likely to engage with an ad relevant to their current location; 53 percent are willing to share their current location to receive more relevant ads; 52 percent acted on an ad in an app in the last 30 days, while 18 percent made a purchase because of it. Examples of travel companies capitalizing on this trend are InterContinental Hotels Group, and JetBlue Airlines (in partnership with GateGuru).
The challenge?
While location-based apps are indeed getting lots of attention lately, they still lack mainstream appeal — at least for now. A 2010 report by technology and market research firm Forrester Research notes that less than 5 percent of U.S. online users have ever used a location-based mobile app, and almost 85 percent said they were not familiar with location-based apps at all. So while location-based apps can and will likely transform travel as we know it, we still have quite a way to go before we “get there.”
ESPN is upping its game to get America wild about the World Cup. The World Cup is the biggest sports event worldwide – airing across 214 countries and territories, and drawing an even larger audience than the Olympics or the Super Bowl. This year's tournament is scheduled to take place June 11 to July 11 in South Africa.
While ESPN’s intensified efforts are impressive, the question remains: when it comes to soccer (or football, as it is known internationally), can ESPN build a loyal following and score a ratings hit over rival network Univision?
B2B e-business and e-marketing magazine Inside Digital Media and e-marketing portal Digimedia.be successfully held their second "Mobile Marketing Forum" last April. The Forum, held in Brussels, Belgium, tackled challenges and opportunities in today’s rising mobile ad market. As an Interactive Advertising Bureau and PriceWaterHouseCoopers report noted, mobile ad spending grew 32 percent in 2009. Moreover, recent investments by tech giants such as Google and Apple Inc. further bolstered enthusiasm in the industry — Google with its proposed $750-million acquisition of mobile advertising firm AdMob, and Apple with its launch of iAd, a mobile advertising platform aimed at the world’s 50 million iPhone users.
Conference speakers included Fabian Tilmant, New Media Consultant for media consulting firm Cleverwood and a previous participant at the Advanced Digital Media Strategies (ADMS) program offered by IESE Business School’s Institute for Media and Entertainment (IME). Tilmant shared his “Digital Content Distribution Ecosystem” or “DiCoDE” model. “DiCoDE” is a modified media value chain which takes into account the role of social networks, advertising, user interaction and user currencies. Tilmant’s model was inspired by the “value chain analysis” originally presented by IESE Business School professors Josep Valor and Sandra Sieber at the ADMS program. To view Tilmant’s DiCoDE presentation, click here.
IESE Business School's New York Center is the backdrop this week for the Spring edition of Advanced Digital Media Strategies. Organized by the school's Institute for Media and Entertainment (IME), the program teaches participants how to quickly respond to changes in the media landscape by re-developing and adapting their digital strategies.
The program covers key topics such as understanding the digital media value chain, and how underlying technologies affect the pricing of media products. Led by IESE Prof. Josep Valor, Advanced Digital Media Strategies also features sessions taught by faculty members Luis Cabral, Sandra Seiber and José Luis Nueno.
The program is aimed at mid-level to senior-level executives responsible for digital media strategy, marketing, advertising, distribution, syndication, content creation, innovation and product development in media and entertainment businesses.
Executives from companies like Procter & Gamble, Bertelsmann/Random House, CNBC, WE tv, and others participated in the program's Spring session. Participants came from various countries, including Bahrain, Belgium, Iceland, Poland, South Africa, Switzerland, UK and USA.
The program marks the third offering for executives to be held at the school's new Manhattan location since it opened its doors in March.
Highlights of the 3-day program will also be posted at IME's Twitter account. Follow IME at http://twitter.com/imenewyork
The cable television industry may be in for a makeover, whether it likes it or not. One possible role model could be Apple Inc., notes a February 2010 article from The Wall Street Journal. Here’s why:
Currently, TV networks provide shows and channels to cable operators for a fee. Cable operators then bundle the content together as part of a cable TV package, and recoup their expenses from consumer subscriptions and in some cases advertising.
The problem is, consumers aren’t happy paying for packages that include shows on networks they don’t really watch or even want in the first place. In fact, media research firm Nielsen estimates that in 2008, households only viewed 18 channels on average, out of the 130 that come with their cable TV subscription.
Likewise, the Internet is a growing threat to the cable television industry’s current distribution model. Not only can viewers now watch shows for free or at a low cost online and on web-enabled devices, but the ubiquity of the Internet could also increase the risk for pirated shows, especially as consumers look for cheaper alternatives.
One possible solution, notes The Wall Street Journal, is for cable operators to ditch their role as content middleman and to simply focus on selling access to their pipes, allowing TV networks to then sell content directly to consumers. This, notes the paper, is similar to how Apple Inc.’s new e-book store for the iPad (dubbed “iBooks”) operates — by acting as a storefront (or a dumb pipe) for publishers to sell their books, in exchange for a fee.
To read the full Wall Street Journal article, click here.
Businesses are increasingly using social media to connect with consumers and enhance brand awareness. However, according to a 2009 global study sponsored by technology giant Cisco, few businesses have formal processes and policies in place to govern social media use, and this lack could lead to improper disclosure and misrepresentation.
The Cisco study, the first of a two-part series, is based on in-depth interviews with 105 participants from 97 organizations in 20 countries. It was carried out by IESE Business School in Spain (an operating partner of the Institute for Media and Entertainment), the E. Philip Saunders College of Business at the Rochester Institute of Technology in the U.S., and the Henley Business School in the United Kingdom.
According to the study, social networking tools like Facebook and Twitter are becoming a key part of business initiatives in areas like marketing and communications, human relations and customer service. However, only one in seven of the surveyed companies had a formal process to implement social media tools, and only one in 10 involved their IT departments in their social media strategies. What’s more, respondents admitted that they find it difficult to create and adopt policies that strike the right balance between the personal nature of social networking, and proper corporate oversight.
As companies integrate social media in their operations, the study suggests that the following issues be addressed: When, how and what initiatives are to be launched (and not launched); how the enabling technologies should be managed; and how employee use of these technologies should be managed.
For study highlights and additional information, you can read the full Cisco news release here.
