Famine City

Birth of the Small Screen: Part II

In my previous post, I covered why I believe that the transistor radio is a direct parent of the small screen. It had all of the modern day components that create success: portability, choice of content and convenience. Following in those footsteps, where the transistor left off, the Walkman took it to the next level, personalization. 

The Sony Walkman debuted in 1979. It really took the next form of personalizing the experience with audio cassettes. However, Sony really wasn't the first. A portable personal stereo audio cassette player, called Stereobelt, was first invented by the German-Brazilian Andreas Pavel in 1972. Pavel filed a patent for his Stereobelt in Italy in 1977, followed by patent applications in the U.S., Germany, the United Kingdom and Japan by the end of 1978. Later, a lawsuit filed and ultimately won by Pavel rumors an award of more than 10-million dollars. Nevertheless, all the glory belonged to Sony who continues to market personal music devices under the Walkman name.

The most important thing facet the Walkman brought with it was personalization. Personalization is different than choice of content. Choice of content is the ability to choose from a range of predetermined content. Personlization is choosing and experiencing your content. The Walkman allowed personalization and a 1:1 experience, created by you. It simply extended the path that was created by the transistor radio. Can anyone say mix tape? 

It wasn't just music. All types of industries were beginning to see the opportunity of the smaller screen. 

While people were experiencing the music of choice, other technologies were starting to emerge on the small screen. Portable gaming devices were beginning to explode in the late 1970's and early 1980's. The first version of Mattel's Classic Football came out in 1977. They weren't expecting many sales, less than 100k. By mid-1978, they were selling about 500k per week. The small screen was coming of age and the range of personalization and choice was being delivered by the gaming industry from home consoles, like the Atari 2600, to even watches of the time. Admittedly during this time, portable gaming personalization was fairly limited. Most portable devices were single game devices, ie a single game on a single device. Yet, they were still crazy popular. 

What may have taken the portable music world greater than 20-years to hit mass, the gaming industry would hit in about 10-years. In 1989, the first Gameboy was introduced in Japan. Soon after it was introduced in the US and soon it sold over 32-million units. This was a major advancement, like the Walkman, that allowed convenience, choice of content, portability and personalization. 

Music and gaming were clearly contributors to the small screen, but they were also doing something else. They were grooming an economic model that still exists today. You pour out dollars for the system, but the real dollar spent is spent on content after the initial investment. These devices were not cheap (they still aren't). I still remember buying the first version of Major League Baseball in 1988. As I recall, it was $74. Adjusted for inflation, that is over $130 today. Arguably, you could say that records laid the groundwork for content model here. However, I think gaming really raised the economic bar significantly and also groomed consumer behavior for more frequent upgrades, think Atari 2600 to NES. 

At this point, consumers are beginning to expect all the principles that are driving to the small screen, personalization, choice of content, portability and convenience. They are used to shelling out a good deal of cash and getting used to more frequent upgrades. However, up to this point, we're talking about about largely developed economies and cultures. You're not going to find portable gaming in the rural parts of China or Africa in the mid-1980's. Heck, you probably won't find a TV at that time and still may not even today. However, all of that changed with the mobile phone.

In my next post, I'll explore why the mobile phone is the "killer application" and why mobile phones appeal to people that live on less than $2 a day. 

follow me on twitter @marty_b

You have my permission

... to fail. 

It's not just my permission, it's the calling of all industries. People are shaking in their boots right now. The time to be bold is upon us. Try things that just might fail. Be bold. 

I have tons of ideas, many of them could be bad. However, I do have ideas. Here are some of my favorites that I'd love explore in a need-to-be-bold-times. 

Empty seat industries
There are a number of industries, like airlines, concerts, minor league athletics (hockey in Cinti), that would benefit from an auction model. All of these industries share a common problem, if your seat goes unused, you lose revenue. I think it would be better to build good will and consumer interest by sectioning off an auction allotment and auction off seating. People like the thrill of an auction. Look at ebay, a lot of folks pay more there than on a normal etailer site. There's something there--people feel like they have won. It's the insight ebay uses with a great deal of success. It's a model that will require some try and change, but there's an idea there waiting to change industries. 

Micro/transactional behavior changes
This is the year to try this new model. Micro-sd, micro-blogging, micro-lending, micro-management, you name it and there's a micro version of it. There's going to be a hard sell for high ticket items, plus in the past if something wasn't valued high it wasn't worth much. I believe technology has turned this on it's head (think email)--free and low cost items do have a lot of value. 

See what products or services that you can offer for very little and aim for scale. I think the dollar target is somewhere in the $1-10 range. iTunes/Amazon MP3 purchasing works because it's a low cost investment and if nothing works, no real loss--now I do appreciate that there is a great user experience behind it, but the value-to-risk proposition is low. Consumers are going to be more willing to take these types of small leaps. Look at iPhone apps, they are exploding and are going to continue to explode, not just because of the technology, but because of a renewed shopper behavior that low to no cost items can provide real value. 

New markets
Libraries are the new bookstores of choice. The library is no longer just books. Libraries are media outlets, complete with CD's, videos, books and tapes. One can argue that libraries are gaining new consumers because people are looking for new/lower cost ways to redistribute their time. However, I think there is a larger consumer insight in this case: consumers no longer need to own media. We've become accustomed to simply using it and returning it. In fact, we can't own all of the media anymore. Technology HAS changed the way we use/own/purchase all types of media. The library model just tends to lend itself to the both economic and consumer behavior--an interesting union. Therefore, I see this as an untapped market. 

Don't suck.
One of the all time worst businesses that one can start is a restaurant. There's so much variety, so much competition in that market, why try? Here in Cinti, OH a little place called Terry's Turf Club should inspire everyone. It is a small hole-in-the-wall restaurant that serves burgers. They have been around just a couple of years and the location is a bit out of the way. They have a lot of strikes against them in a tough economy, while most restaurants are offering discounts to get people through the door, Terry’s is not. They have one weapon, but they only need one. They have the best burger in Cincinnati. This is why Terry’s has people falling out the doors just about every night of the week and you don't talk to one person in the know that doesn't want to go there. And soon. Why has this little place made it? They do one thing and do it better than anyone else in town. People will part with their funds if your product is good. Get the message, don’t suck. 

What are your visions and inspirations to change tired industries?

~marty