Money Making Machines and Flux The Future of Products & Services
Darwinist Ecosystems Evolve, Dominate or Die!
Evolve, Dominate or Die!
<ul><li>500,000 units:  Gold album </li></ul><ul><li>1,000,000 units:  Platinum album </li></ul><ul><li>2,000,000+ units: ...
Old  W o rl d Business Model
New World MMM circa 2007
The Web-enabled   Platforms
Digital Evolution
The  Money-Making Ecosystem INFORMATISED SERVICES INFORMATISED
The  2007 MMM Proposition It's a win-win-win-win for everybody: Musicians & labels make $$$ Gamers get continuously fresh ...
The Results <ul><li>The  Guitar Hero  franchise has become a cultural phenomenon, making many appearances in popular cultu...
The band has gone on record in saying that it is already the single most profitable product they have ever released .   Th...
How is our Ecosystem Today?
Evolve, Dominate, Die! Evolving Preferences
Evolve, Dominate, Die! Another Example (at hyperspeed ‘cause I’m sure I’m running out of time...)
Evolve, Dominate or Die! Blockbuster Inc. is the largest chain of DVD, Blu-ray Disc, and video game rental stores in the w...
Dominate: A Proven Biz Model... “ You come to us for the product and we make money from your inherent laziness”
Evolve!  “ We provide you a personal, convenient service at a fair price”
Die! On 23 September 2010, Blockuster Inc. filed for bankruptcy.
Evolve! Dominate!
The  Money-Making Ecosystem ACCESS ACCESS INFORMATISED INFORMATISED SERVICES SERVICES
Evolve! Dominate! It's  NOT  a win-win-win-win for everybody: T he platform manufacturers sell  more  units     $ $ (but ...
Evolve! Dominate! Die! It's  NOT  a win-win-win-win for everybody: Content providers – movie studios, cable operators and ...
What are the dynamics? Events evaporate, patterns persist Ecosystem Longevity/Experiential Tolerance
So..... Products    Services    Services as Products What are the further implications of Darwinist ecosystems?
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The Future Of Services - Club Of Amsterdam 17 February 2011 Final Version

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A revisit of New World business models looking at business cases: NetFlix versus Blockbuster and Guitar Hero, platform manufacturers, music labels and Aerosmith. Analysis of Netflix\'s current competitive positioning

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  • Gamers can get a bunch of content that expands and enhances their gaming experience. Video game companies can sell a boat load of easy-to-make titles that basically rely on the same game mechanic, just with different songs. And the musicians, well, they make out with out some serious cash, thanks to payments up front and ongoing royalties. Irving Azoff, whose company manages Aerosmith told the Wall Street Journal that videogame deals can be “much more lucrative than anything you can do in the record business.”
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  • The Future Of Services - Club Of Amsterdam 17 February 2011 Final Version

    1. 1. Money Making Machines and Flux The Future of Products & Services
    2. 2. Darwinist Ecosystems Evolve, Dominate or Die!
    3. 3. Evolve, Dominate or Die!
    4. 4. <ul><li>500,000 units: Gold album </li></ul><ul><li>1,000,000 units: Platinum album </li></ul><ul><li>2,000,000+ units: Multi-Platinum album </li></ul><ul><li>10,000,000+ units: Diamond album </li></ul><ul><li>Average price, new: USD $15 </li></ul>http://www.classicbands.com/bestsellers.html Sales = $815,000,000 Number Artist Sales 1 The Beatles 106,530,000 2 Garth Brooks 92,000,000 3 Led Zeppelin 83,620,000 4 Elvis Presley 77,280,000 5 Eagles 65,000,000 6 Billy Joel 63,250,000 7 Barbra Streisand 62,750,000 8 Elton John 61,620,000 9 Aerosmith 54,370,000 10 Pink Floyd 52,600,000 Date of Release Title Label Billboard Peak RIAA Certified January 13, 1973 Aerosmith Columbia #21 2x Platinum March 1, 1974 Get Your Wings Columbia #74 3x Platinum April 8, 1975 Toys in the Attic Columbia #11 8x Platinum May 3, 1976 Rocks Columbia #3 4x Platinum December 1, 1977 Draw the Line Columbia #11 2x Platinum November 1, 1979 Night in the Ruts Columbia #14 Platinum August 1, 1982 Rock in a Hard Place Columbia #32 Gold October 21, 1985 Done with Mirrors Geffen #36 Gold August 18, 1987 Permanent Vacation Geffen #11 5x Platinum September 12, 1989 Pump Geffen #5 7x Platinum April 20, 1993 Get a Grip Geffen #1 7x Platinum March 18, 1997 Nine Lives Columbia #1 2x Platinum March 6, 2001 Just Push Play Columbia #2 Platinum March 30, 2004 Honkin' on Bobo Columbia #5 Gold
    5. 5. Old W o rl d Business Model
    6. 6. New World MMM circa 2007
    7. 7. The Web-enabled Platforms
    8. 8. Digital Evolution
    9. 9. The Money-Making Ecosystem INFORMATISED SERVICES INFORMATISED
    10. 10. The 2007 MMM Proposition It's a win-win-win-win for everybody: Musicians & labels make $$$ Gamers get continuously fresh content     , $$$ Video game companies sell new versions using the same basic mechanics  $$$ The platform manufacturers sell more units  $$$
    11. 11. The Results <ul><li>The Guitar Hero franchise has become a cultural phenomenon, making many appearances in popular culture, becoming extremely popular as party games, and revolutionizing the modern music industry. The series has sold 23 million units, earning US$1.6 billion at retail </li></ul><ul><ul><li>Graft, Kris (2008-01-21). &quot; Guitar Hero Breaks $1 bln &quot; . </li></ul></ul><ul><ul><li>Next Gen Business. http://www.edge-online.com/news/guitar-hero-breaks-1- bln . Retrieved on 2008-01-21 </li></ul></ul>
    12. 12. The band has gone on record in saying that it is already the single most profitable product they have ever released . This video game has earned them more money in one year than any of their albums, even the records that have been sitting on shelves for over twenty years. http://media.www.uwmleader.com/media/storage/paper980/news/2009/01/29/Music/Guitar.Hero.The.Music.Industrys.Villain-3606224.shtml The Results €
    13. 13. How is our Ecosystem Today?
    14. 14. Evolve, Dominate, Die! Evolving Preferences
    15. 15. Evolve, Dominate, Die! Another Example (at hyperspeed ‘cause I’m sure I’m running out of time...)
    16. 16. Evolve, Dominate or Die! Blockbuster Inc. is the largest chain of DVD, Blu-ray Disc, and video game rental stores in the world. The first Blockbuster store was opened in Dallas, Texas in October, 1985.
    17. 17. Dominate: A Proven Biz Model... “ You come to us for the product and we make money from your inherent laziness”
    18. 18. Evolve! “ We provide you a personal, convenient service at a fair price”
    19. 19. Die! On 23 September 2010, Blockuster Inc. filed for bankruptcy.
    20. 20. Evolve! Dominate!
    21. 21. The Money-Making Ecosystem ACCESS ACCESS INFORMATISED INFORMATISED SERVICES SERVICES
    22. 22. Evolve! Dominate! It's NOT a win-win-win-win for everybody: T he platform manufacturers sell more units  $ $ (but weaker link) Netflix sells more subscriptions through the platforms  $$$ Customers get content on demand for low cost     , $ Content providers – movie studios, cable operators and artists – earn less money, lose influence    
    23. 23. Evolve! Dominate! Die! It's NOT a win-win-win-win for everybody: Content providers – movie studios, cable operators and artists – earn less money, lose influence    
    24. 24. What are the dynamics? Events evaporate, patterns persist Ecosystem Longevity/Experiential Tolerance
    25. 25. So..... Products  Services  Services as Products What are the further implications of Darwinist ecosystems?

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