Morning, Vendit:
The 'old' media depends on TV, Radio, Newspapers, books, magazines
to deliver the contents.
The 'new' media is the old media + PC screens provided by the internet.
TV has eyeball counts, TV allows you to call in to order once you see
something you like from the ad., similarly, the eyeball or eardrum
on papers, books or radio has the same effect.
But the internet is actually a mixture of all the old media because you can watch from site to site (channel to channel), you can 'read' from site to site (chapter to chapter),
read news from CNN, ABC, New York Times, you can read books, you can listen music and radio, you cancall and communicate with others, and you can buy goods, you can
apply credit cards, you can even see your friends or
relative through a direct video or conference a meeting, geez, I cannot name them all, this is why internet is so attractive to everyone, it connects everything in one! .
But all functions require a screen of some sort, this screen replaces TV/book/papers/radio/telephone/video... so that is why
the sub $1000, $500 and $300 computers are so important in the growth
of internet, it made more screens available to all.
The GARNET GROUP report I read yesterday says that 75% people who bought computers consider Internet usage is their #1 reason of owning
a PC, only 25% for office or other needs, this is the big shift from
nearly 100% PC usage is for office and games, this is exactly why
MSFT wants to imbed the browser into their OS.
With all said, the importance of gathering EYEBALLs through screens
becomes so vital, this is like TV/radio/newspaper, the rating affects
the ad $$$, but how to attract new eyeball and how to keep old eyeball
is art, this is why AOL wants to enrich their screens, add more
useful contents for all audience, it is not an easy thing,
but they are very successful so far.
Telephone, wireless, satellite communication are good for internet
only if their usage can eventually appear on a screen or something that is visible, that means the phone (cellular or not) needs a new design to have a micro screen on the set to show 'words', are we there yet? may be, but just like the DVD, it is too expensive, not everyone (the majority) can afford now. Even a laptop today is still expensive to attract all audience.
AOL must know that, it tries to win the mass audience market share now, it knows that the day everyone owns a 'fancy' screen to interact
with the internet is not near yet, AOL will evolve to it but not jump
to it. This is why I think AOL will focus on the interface of
internet software with hardware but not 'own' any hardware, it
can attract more ad. $$ for all hardware (telephone, satellite, pc,
newspapers,...) to put their 'product' on AOL's screen because
AOL does not compete with them directly!
With over 50% of current USA internet eyeball market, AOL has a lot
room to grow because only 45% of US households has PC and only 25%
of the PC households have internet connection!
(see biz.yahoo.com, this is great for AOL,
it should concentrate to what they are doing to win out the
average US households and the average world PC households, let the high end market to test itself, let the high end
usage to be added into the AOL universe as a spice but not the
only spice.
Friends, can you see what I see as the world turns? |
