Monday, November 26, 2012

Service Providers Don't Always Pick Technology Winners

For those who can remember widespread cable operator interest in "interactive TV," dating back to the 1980s, there is a lesson. Service providers are not always "right" about what consumers want, or how to supply the demand.

The early thinking was that people wanted, and would use, interactive features built around the video experience, using the TV, remote control and cable box as enablers.

As it turns out, people do "interact" or "augment" video programming, but in a way not foreseen: they use their PCs, tablets and smart phones to multitask. In other words, they "do other things" while watching TV. 

But they do not really want to interact directly with video content. The lesson is that suppliers do not always understand what it is that people might want to do. So the instinctive response is to ask people what they want, what they might pay for experiences and how they want those experiences delivered. 

But consumers nearly always have a tough time figuring out how they might use a product they never have seen. In such cases, asking doesn't help. Steve Jobs, former CEO of Apple, perhaps was the foremost practitioner of a skeptical approach to asking people what they want. 

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