Amazon planning fitness earbuds
Amazon’s hardware roadmap will include earbuds powered by Alexa that track motion, running distance, and calories burned. CNBC
dis-rup-shun: Amazon is continuing to head the direction of device powerhouse, extending Alexa to ever more products, and creating possibly a new category of device (fitness earbuds) to capitalize on the hot connected wellness market. Reasons for investing heavily in the generally not profitable device business likely include the fact that, as Apple has taught, devices are platforms for online services. A monthly fitness coaching subscription, possibly free to Amazon Prime members, could be in the works. Furthermore, creating an armada of Alexa-powered products could lead Amazon’s Echo family to become the defacto home hub for all things connected, from music players to microwaves, to light switches, driving commerce for grocery delivery, utilities, and music and TV services through an Alexa-powered home transaction hub. So far consumers have not used Echo as a purchasing platform, but that could change.
Streaming Wars: Netflix’s stock tanks
Netflix’s stock price has dropped, giving up all gains from 2019 and sending it negative for the year. The combination of a drop in subscribers, new competition from Apple, Disney, AT&T, CBS, and others at aggressive price points (several below Netflix), and the loss of the blockbuster series The Office, have painted a challenging picture of the company’s future. CNBC
dis-rup-shun: It is amazing to watch how fast a pioneer company that invents new categories, like Netscape, Uber, Blockbuster, Sony and now Netflix, can find itself fighting to keep its place in the race it started. As mentioned before, Netflix, though a beloved brand, is different from its new competitors in that it does not have other revenue streams to help subsidize losses of its subscribers. Differentiation is now all about original content, and if Netflix is tempted to lower its monthly pricing, it will have to cut back its original content budget, blunting its competitive edge.
Microsoft quickly capitalizes on retail’s revolt against Amazon Web Services
Microsoft has released retail friendly tools, Dynamics 365, making it simple for online retailers to build product pages that can get ratings and comments from customers. The tools are tightly integrated with other Office tools. As many retailers have moved their cloud business to Microsoft Azure in order not to further enrich their rival, Amazon, Microsoft is moving quickly to provide advantages to retailers. CNBC
dis-rup-shun: Microsoft continues to effectively re-tool its business, both enhancing its core assets (Windows + Office 365) and developing superior products in the cloud race. The company has acted swiftly to capitalize on big retailers’ anti-Amazon movement. Expect the company to continue to find ways to differentiate its cloud services, and to apply similar specialties to other target industries.
Facebook invests in neural monitoring company
Facebook has paid an estimated range between $500 million and $1 billion for neural armband monitoring maker CTRL Labs. The acquisition follows Facebook’s prior investments in methods to control devices with brain waves — eliminating dependence of keyboards, mice and smart speakers. TechCrunch
dis-rup-shun: How does this investment fit into Facebook’s distinctive competencies of social networks? Is this about being able to update one’s status without typing, or is Facebook trying to leapfrog Amazon by building portal devices for video communications and neural controllers since Amazon owns voice control? It is likely a power play to establish the company as a pioneer of a future, undefined product category rather than execution of a defined strategy, but definitely a bold and ambitious (and expensive) initiative.
