Understanding the evolving Network Digital Industry

Stephen Shepherd led us through an interesting discussion regarding the evolution of our industry. The growth of broadband and the internet has put the customer in control (network inversion from telco controlled to customer controlled experience).

IP and Peer to Peer file sharing have caused headaches for traditional telcos as its hard to monetize the value customers are obtaining from network services (billing nightmare). New business models are necessary for the different members in the value chain to survive (Peer to Peer is viewed as evil by the entertainment industry as it enables theft of digital assets – music has been hit hard but videos should be better. BitTorrent has signed a deal to legally distribute movies).

New business models (Telco 2.0) are being debated. All focus on how to make money in an all “IP World”. Focus on alternative business models. Assume that the user is in control of the experience.

As the user is in control of the experience, the battle is on for delivering the most compelling, simple, best organized, personalized user experience. The personalized experience will be delivered as close to the customer as possible. Google is ahead with serious momentum. Social Networking companies are vying to be the one-stop user experience. Competitors are seeking to control the device in the home to deliver this personalized user experience (Apple, Microsoft, Cisco all pursuing). The battle is on for delivering the most complete, simple, personalized experience to communities and content.

Social Networking: Huge Trend shaping the industry

We discussed SecondLife and it’s relevance. SecondLife tells you who people WANT to be, NOT who they are. The companies that can successfully market to people’s aspirations, will win big. In the business world, SecondLife is being used for internal training (IBM new hire training conducted in SecondLife) as well as business meetings. People’s willingness to pay for virtual real estate is an indicator of willingness to pay for virtual assets going forward.

Facebook, MySpace, YouTube, and the like are enabling people’s desire for self-expression and sharing. People are willing to share a wealth of personal information in order to obtain a more personal online experience. Sharing builds community, makes you smarter and more tuned in.