Skip to main content

How Blockbuster could WiMaximise their distribution

I last wrote about the developing business cases for WiMax, on of the favourites in TV over WiMax.

The bandwidth and transmission distances make this technology, in many peoples eyes, a good platform for IPTV. The UK is in the stages of going digital anyway so most people will have to get used to the idea of some form of set top box, might as well be some form of WLAN modem.

The pressure that Cinema is facing, see the plea from Mark Cuban, to try and get some form of ROI in the film business is in large part down to the challenge that home entertainment lays down. The convenience factor of being in your home with your widescreen TV, DVD player and Home Theatre with full Dolby support means that the effort required to pull people out of their LazyBoys and head in to the cinema is large. As Mark mentions during a first weekend a typical distributor can end up paying $12 per head in advertising to get them to come and buy a $5 cinema ticket.

One of the leaders in the home entertainment enablement has long been Blockbuster. With operations in US, UK and Australia to name a few there are already re-engineering their business model as they come to terms with the inconvenience people feel on heading down to the shop, getting the rental and having to return it to the shop on time.

Their unlimited buffet of movies allows you to order online, build a queue of films that you would like to see and sends the media to your door. You can then return it to them in a postage paid envelope.

To me it would seem to be a simple step to adopt WiMax technology to transmit the film over wireless broadband and save the media costs.

The strength in the business model today is the knowledge that they have of the customer. They have a wish list of films, they have the customers history of not only genre of film and/or actor but spending patterns as well. This is the sort of knowledge that the telco's are going to have mine in order to transition their businesses successfully in the new emerging technologies, but more of that later.

The ability to browse, select, order and watch a film in my home over one technology is a real pull for many end users and will put Blockbuster in the same domain as cable operators.

The other benefit for them would be the softening of the impact on technology choice. They will soon face the same problem they had in the Betamax and VHS days. The different and conflicting formats of HD DVD will mean the will have to double on stock or be ready to upset some customers. Going to wireless delivery will mitigate the risk as IP is IP. There are different technologies and vendors in the WiMax loop but the packet based streamed delivery is the bit that Blockbuster have to worry about.

Comments

Popular posts from this blog

In the overlap of technology, marketing and social media the QR Code is critical

Outside of consulting on telecommunications, CIO advisory, and the business adoption of technology I also completed an MBA.  One of the projects was on the potential use cases of two dimensional barcodes. Today the QR Code , one of many types of 2D codes, is seen as being a critical component of any good marketing plan.  As a natural integration between social media and devices I would extend VMob Bob's question " What can a mobile operator learn from Facebook ?" and also ask how can they step and start to make innovations with the extensions to social media that already exist today?

Access as infrastructure, what does this mean for Telco 2.0?

Having recently attended a seminar by Catherine Middleton from Ryerson on Australia's NBN initiative it got me thinking about "access as infrastructure". The Australian Government is investing $B's of public and private capital in a national broadband network that is a fibre to the premise platform, although for distant and remote sites it will most likely be a fixed wireless solution.  The proposition from Dr. Middleton is that ubiquitous access will create a platform for services that separates competition from access, sounds like Telco 2.0. The question I posed was if the idea is a common platform but close to 10% of that access will be at 12Mbps rather than 100Mbps (fixed wireless versus fibre) then surely the lowest common denominator will prevail and services will be designed for 12Mbps.  You would then question the rationale of FTTP or FTTH when you could go fixed wireless.  Over time LTE and similar technologies will see an increase in speed that will of...

A Phone or a Swiss Army Knife?

It's getting to that time when I should start looking for my new handset. I choose the word carefully as today you are very lucky to find just a phone. Most handsets today are either a phone and media player, a phone and a camera (sometimes video), a phone and a PDA the list of combinations goes on and on. Now this might be great in the marketing room "what can we do next?" but the point that is lost on many of the manufacturers is this; people want a phone first the rest is secondary. Many of the hybrid handsets look good, can have great MP3 playback but suffer in size, ease of use of the main function (phone calls) or have poor battery life because of all the other gadgets hanging off of it. It's very similar to the Swiss Army Knife, the knife is often too small to be used for much over opening your letters, the screwdriver is hard to use because the size of the body means you can't get to a lot of the screws on objects, the pliers have little leverage because t...