Business modelsInnovation

Experiences not products

By September 6, 2006 January 6th, 2007 No Comments

The inspiration for this post came from JP Rangaswami and his chatter about DRM, and from Fred and his views on music services.

We are seeing that cinemas and dvd rentals are bouyant but owning movies is increasingly less impotant.

For nusic even legal track prices have reached zero on Spiral Frog whilst streaming services seem to be on the up. Rolling Stones and Robbie Willams make all their money from tours not records. DJs are the new rock stars.

It`s all about EXPERIENCES not PRODUCTS.

Outside the tech VC world this theory explains growth markets in luxury spas, the way restaurants and pubs are developing themselves and the growth in leisure markets generally.

This is all the result of increasing disposable incomes and the commoditisation of lifes staples. The price of white bread has been falling for years.

I’m not sure what this tells me yet re making investments. The most obvious thing is to avoid retailers unless they (can) have massive scale.

I posted this from my QTEK browser. 4 links one trackback. A bit painful but not bad.