Gadget Makers Finally Realize Content and the Consumer Are King

I'm reporting from the Consumer Electronics Show and this year more than ever, content is front and center.

Gadget-makers are working to make it easier to access content when, where, and how consumers want it, and media giants are becoming increasingly flexible, now willing to distribute to many more companies and devices. Talking to CEOs, analysts and consultants, a couple of key trends are emerging.

Media companies are focusing on what they do best—content—and not on getting into the gadget business.

Forrester's James McQuivey tells me that the entertainment companies have realized that they don't have to own the technology—they're effectively giving up their stronghold on distribution. Instead they're striking tons of deals with companies like Netflix (NFLX) and Apple (AAPL). That way they don't have to worry about investing in technology that may or may not work out.

Consumers are getting the control to customize their entertainment experience.

You can already watch TV when you want it, thanks to the DVR, you can watch it where you want it, on your iPhone, and now you can make your TV-watching experience just as interactive as your web surfing.

Yahoo's (YHOO) Connected TV and Microsoft's (MSFT) Media Room (through AT&T's (T) U-verse) bring Internet capabilities to your television. With Yahoo Connected TV you can toggle through the weather or check your stocks while also watching your favorite show. Inspired to make a purchase?

There's an eBay (EBAY) and Amazon (AMZN) widget you can choose to put on the bottom of your screen, allowing you to take a break from "Heroes" to click "buy" with your remote. Microsoft's Media Room allows consumers to turn on the tv and rewind, any channel on television, without having to TiVo it ahead of time. (This is only available in Singapore as of now.) They're making it so easy consumers don't even have to be proactive, the choices come to them.

Television is no longer a device, it's entertainment.

Deloitte consultant Edward Moran tells me that older people think of a television as an object sitting in their living room. Ask teens, 20-somethings or even 30-somethings about television, and they won't be talking about an object, they'll be thinking about entertainment, content that can be consumed on any device. The lexicon is shifting.

Comments

[Linda Nelson:]

It's great to see that trend is finally being embraced by the large content creators. The major Hollywood studios, like the automakers have gotten so big, it's hard for them to be nimble and adjust to the changing times, but change they must or they will go the way of GM. The groundswell has taken over and we all have to learn how to engage with it. Technology has destroyed the old distribution business models and as Tome Peters predicted more than ten years ago, intermediaries are disappearing. We are close to the point where content creators can connect directly with content consumers - all thanks to technology. Apple dropping DRM, is just a small indication of what's to come. Great systems for delivering content to the best digital platforms is a great new business to be in and several companies are well positioned to lead the assault on outdated business models, such as the delivery of content via digibeta tapes. The tapeless media world is well on its way to becoming a reality.

Jan 11 11:45 AM

[dr.anthony:]

Julia Boorstin: In a couple of words: beautiful and smart. Enjoy your work, always informative.

Jan 11 11:30 PM