The Media Decade

The decade of new media

Ten years ago, Netflix was shipping DVDs, DirecTV was the largest pay TV provider, AT&T was making more from land lines than wireless, and Yahoo! was a $24 billion king of Internet. The decade marks the end of content only companies, as most content creators were swallowed by distributors, as evidenced in the recent merger of CBS and Viacom. CNBC

dis-rup-shun: Few industries that have been completely rewired by the Internet are as visible as media companies. We have to also thank the proliferation of Internet attached devices with screens, including smartphones, tablets and smart TVs. Without these connected devices the media distributors could have maintained control of the majority of content. The advent of 5G will accelerate the transition to streaming content services, as accessing anything anywhere at anytime will be even easier than today.

Where will 5G first appear?

The TV commercials have started… 5G networks are here (T-Mobile). But 5G networks are expensive to build and growth will be uneven. The industries that are most anxious to deploy, and therefore invest, in 5G are autonomous cars — providing rapidly updated maps and traffic data in real time, telemedicine — enabling specialists to perform procedures on remote patients, and in manufacturing facilities — 5G will connect assembly robots so that they can be constantly monitored for breakdowns or errors.  Wired

dis-rup-shun: The path to monetization of new networks is clearer in industries that can lower production costs or increase speeds with greater connectivity. Giving consumers faster Internet on smartphones and computers is great, but how much and how quickly will people upgrade to enjoy the pleasures of more speed? We are about to learn.

Amazon bans sellers from FedEx

Amazon told all sellers (58% of all merchandise is from third parties) to cease using FedEx Ground as the carrier’s ability to deliver on time is of concern. This is the latest in a series of jabs between the companies, following a decision in August by FedEx to end express delivery for Amazon. Meanwhile Amazon is building a $1.5 billion air hub in Kentucky,  where 50 planes will be based. CNBC

dis-rup-shun: Is Amazon a bookseller, an online department store, an electronic storefront for hire, or a logistics company? The answer, of course, is all of the above and the bigger question is can Amazon continue to compete with its own customers? Can FedEx and UPS develop loyalty programs to keep their own customers from defecting to Amazon shipping when the Seattle giant begins to offer shipping to companies that are not Amazon merchants? Expect to see either FedEx or UPS develop some aggressive loyalty programs for existing customers in anticipation of the Amazon Effect on shipping.

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