Tag Archives: apple

History of the Smartwatch

History of the Smartwatch:

First episode of a series called a Series of Disruption in and of Wearable Technology. When you have a second to watch this video, pay attention to the evolution of Smartwatches, and how it has not just been a desire recently to own a smartwatch…but since 1880.

You will witness the 5 milestones to the existence of the Smartwatch derived from The Smartwatch Group:

  1. Foundation
  2. Imagination
  3. Electronification
  4. Experimentation
  5. CommercializationThe 5 Milestones

Moore’s Law:

After discussing present day devices, we go into exactly how this is all possible. How computers are developing to be faster and smaller, and why we are capable of creating such innovative devices that we have wanted since 1880. Furthermore, Moore’s Law is defined as, by Gamespot.com as the number of transistors in a dense integrated circuit would double around every two years.

Thanks for watching!

-Deniz

“Free and Easy” Disruption Dismantles Music

When you look at the sudden free fall of the music industry due to disruptive technologies, you can’t help but empathize with an industry that was completely blindsided and not equipped by any means to handle such a sudden alteratiaccon in the way music is made, bought, and distributed.  The question we find ourselves asking is, “What drove this change in the industry?” Music torrent sites like Napster, streaming services such as Spotify, and music production applications like GarageBand are all examples of these disruptive technologies, but I would describe them as the effect of disruption and not necessarily the cause of it.  I think the main ingredient of the music industries spiraling downfall is the consumer. Like all disruptive technologies, the music industries disruption is based on the fundamental question “How can we make the consumer’s life easier?”

“Free” and “easy” are the words driving the changes in the music industry.  Why pay for music when I can get it for free? Why drive to a store and purchase my favorite artist’s album when I can do that with just a few clicks of the mouse? It was these concepts that anyone could get music for free through file sharing that drove Napster to such prominence that wounded record sales to such an extent that they never fully recovered. Napster of course would not have been able to thrive without the internet and file sharing capabilities that were becoming a big presence in the late 90’s and early 2000’s. Not only did Napster give society the chance to obtain artists’ albums for free, but also it popularized the idea of downloading music on your computer without the hassle of going to the store and purchasing music.  It’s no coincidence that Apple’s iTunes really took off after Napster disbanded in 2002.  Society became enamored with the ease through which you could purchase a song and add it to your MP3 player with just a few simple clicks of a mouse.  With Napster no longer an option to illegally obtain music for free, other peer-to-peer file sharing services such as Limewire and BitTorrent began to emerge, along with Youtube to MP3 websites after 2005, to satisfy the consumer’s need to not have to pay for music.

As technology increased its capabilities, so did the ease through which music could be created, distributed, and bought.  Why pay $1.29 per song on iTunes when you can pay a monthly fee on Spotify or to stream music on Pandora radio?  Nowadays the area of the music industry that is feeling the powerful influence of disruptive technologies are recording studios.  Popular Recording studios such as this one in Soho in Manhattan may soon go by the wayside with the lack of use by artists. But this begs the question, “why pay incredibly high rates to use a recording studio when GarageBand and other recording services are available right on your own computer?”  It is very likely that we could soon see more recording studios and even record labels become a thing of the past. http://www.fastcompany.com/3032642/why-the-music-industrys-next-big-disruption-is-in-the-recording-studio

So what is to come for the music industry? What new products are going to make life easier for consumers to have access to their favorite artists? A new platform of music streaming called Direct-to-Fan has made it possible for independent artists to bypass record labels and sell their music or merchandise directly to their fans through websites such as Musicglue.com  or Nimbit.com.  The logic here is, if you’re an artist, why give record labels and music/merchandise distributors a significant cut of your revenues, when it would be much cheaper to use one of the aforementioned websites?  Another new product consumers are beginning to use is Periscope.  Periscope is a live streaming app that allows the user to view live videos that other users are uploading and the user can upload their own live stream.  Periscope has come under fire as some users are using the service to stream live concerts or sporting events, which violates broadcasting copyright law.  Once again the consumer is finding new ways to avoid paying expensive ticket prices for events that they can watch for free from the comfort of their own home.

The question the music industry is asking itself, was there a way its collapse could have been prevented? Is there anything that can be done to stop this downward spiral?  According to this article there is still something that can be done to prevent further collapse but this Forbes article does a great job explaining why the music industry is “beyond all recognition” thanks to disruption. Finally this video also gives a brief description about the causes of disruption in the music industry.

 

 

 

Cord Cutting, the Demise of the Cable Industry

As we have been discussing throughout the blog, the world we live in is being rapidly disrupted, and the TV and cable industry is not immune to this as people are “cutting the cord” and moving away from cable.  There have long been alternatives to cable, but now they are finally becoming practical and affordable to the general public as people are tiring of being bullied by cable companies by being charged obscene prices for, most of the time, bad service.  This has led to the cord cutting generation canceling their cable subscriptions and moving to cheaper alternatives to watch their favorite shows.

Services like Chromecast used to be considered a luxury, but now that they had added more selections and become more affordable, these services are becoming more and more popular.  Adding Chromecast to your home for $35 along with a few other complimentary services that fit your viewing pleasures can still save consumers hundreds of dollars each year, as the average cable bill comes in around $65 per month.

On top of Chromecast, Netflix, and Hulu, Apple TV is in the midst of launching a “cable-killing app.”  Apple is currently negotiating with CBS, ABC, NBC, FOX, and each of their local affiliated networks to get the rights to each of their live TV streams.  Subscribers to Apple TV will also be able to receive their favorite channels, including ESPN, Discovery, and Disney, just to name a few.  Apple will also have HBO available, allowing them to cover almost every possible platform consumers currently pay the cable companies for.  This is the first time that a “cord free” service will be able to offer live sports, separating Apple TV from the rest of the industry and putting the cable industry in serious jeopardy.  Apple is currently in discussions with the NFL along with Patriots owner, Robert Kraft, to give Apple the rights to broadcast live games on their app.  Currently, Apple TV has the rights to offer NFL Game Pass to subscribers which offers live out-of-market preseason games, as well as all regular season games available the next day, on demand.  If Apple can continue negotiations and get the rights to broadcast live NFL games, similar to Yahoo’s free international broadcast of the Buffalo Bills vs. Jacksonville Jaguars game in London this past weekend, the cable industry will struggle to survive that blow, as Apple TV subscriptions again fall well under the $65 per month consumers pay for cable.  However, until this happens, cable companies still have a huge advantage when it comes to the sports fan because there is not a cord free service that currently offers every option of live sports that viewers can get through cable.

With 12.3 million households, or 11% of television watchers are using cord free broadcasting, investors are beginning to have shaky confidence in the media industry.  Analysts at Goldman Sachs still believe that currently, cable tv is a sound investment, but is becoming much riskier with the advancement of cord cutting and the emergence of the plethora of alternatives consumers can switch to.  These alternatives can be combined to form affordable, inclusive television packages that can cater to each type of viewer and are still cheaper than cable and can be seen in the video below.

 

With all of theses alternatives, cable companies need to learn from past disruption, like Blockbuster, to avoid acting once it is too late and all of their customers are gone.  Cable companies need to act quickly to lower their profit margins, so prices can be lowered and services can be improved.  By lowering prices and upgrading their services to provide better quality as well as features similar to Netflix and HBO, the cable companies will be able to keep all of their current customers and avoid the collapse so many other industries and companies have seen because of disruption.

Apple Had a Great Year

On their fourth quarter earnings call yesterday afternoon, Apple showed that they are still dominant when it comes to technology and music in 2015. Apple has been a leader and innovator in music and technology for years by creating new products, perfecting others, and even joining new markets (streaming). This year, though, has been a record setting year for the company.

According to Billboard.com, revenue was reported at $51.5 billion and net profit was $11.1 billion. This fiscal year for Apple saw revenue growth by 28 percent to 234 billion. Annual net income increased by 35.1 percent to $53.4 billion. Although Apple is not the largest company in the world, the numbers show that they are a powerful entity and are only growing as time goes on. Fortune named the company number 1 on their “Top 10 Most Profitable Companies of the Fortune 50” list this past June.

Apple CEO Tim Cook also briefly talked about Apple Music during the call. He spoke about Apple Music and the number of subscribers using the service, now at 15 million individual and family accounts. In addition to this, there are 6.5 million paying customers. This is about a third of the number who pay for the market leader in streaming, Spotify.

One fact that was not surprising, but definitely worrisome, was that the iPhone accounted for 63% share of revenue. This is obviously a large portion of the company’s revenue. As previously mentioned, Apple does a great job at innovating and adapting to a changing environment. Just five months ago, Apple removed the iPod off their homepage menu bar, a product that sat on the bar for 13 years. iPod sales have been declining for years, and Apple adapted by removing the product from the homepage and replacing it with a Music button. How will Apple adapt to their iPhone taking 63% share?

What will Apple do going forward? How will they adapt? A classic line is, “Once you’re at the top, there is nowhere to go but down.” We’ll see what happens.