Steve Neiderhauser writes:
About a week ago, I attended a Linkedin related networking event where a group of executives ate lunch and listened to a presentation. The topic? The convergence of home entertainment and technology.
Michael Greeson, President of The Diffusion Group, talked for 30 minutes about trends in digital entertainment. What’s worked? What hasn’t? Where is digital entertainment heading?
Here are some of the key points Michael made:
Home entertainment and technology are converging. TVs and other home entertainment products are using CPUs, disk drives, and memory. The PC is no longer in replacement mode — today, when you buy a PC you’re able to keep it for three or four years. So, how will PC companies grow revenues? New business models are needed. Dell’s supply chain is its business model. A model that will no longer produce additional revenues by itself. HP is a company that creates products (it spends millions on R&D), and yet HP made a deal with Apple to resell the iPod. It takes a unique set of skills to make digital media products.
What does this mean for companies that make PCs? They need to move to the intersection of media and technology if they wish to grow revenues.
To me, it appears the stars are starting to align in Apple’s favor.