[IP] PC Makers Facing a Flop In Home Entertainment {corrected}
Begin forwarded message:
From: Bob Frankston <Bob19-0501@xxxxxxxxxxxxxxxxxx>
Date: November 2, 2005 8:36:03 PM EST
To: Dave Farber <dave@xxxxxxxxxx>
Subject: PC Makers Facing a Flop In Home Entertainment {corrected}
Stupid Outlook sent this before I was able to finish writing it!!!
http://online.wsj.com/article/SB113090575716186129.html?mod=djemTECH
This shouldn’t be a surprise because while these companies think they
were going to bring their experience into a new marketplace they
failed to understand the real reason for their success – the
marketplace dynamic I keep referring to as “opportunity” vs “solutions”.
In particular, confirming to the DRM requirements guaranteed failure
because the had all the complexity of connectivity elements of
consumer electronics systems PLUS all the complexities of making PCs
work. It’s a formula that guarantees failure. This is why all this
DRM nonsense is doomed.
Unfortunately it’s hard for these companies to really understand
consumer electronics. I was amazed when I was at Microsoft how little
they understood consumers and computers and they seemed to take the
worst elements of each marketplace and combine them. Again and again.
I’ve been writing about this for a long time as in http://
www.frankston.com/?name=InternetandConsumerElectronics. Consumer
electronics companies need to cede control to the consumers and
computer companies must stop trying to fix complexity by trying to
make their myopic scenarios work and thus making every other scenario
problematic.
They need to recognize their success comes from providing
opportunities not solutions. But, of course, they aren’t capable of
hearing this
PC Makers Facing a Flop In Home Entertainment
Dell's Retreat Is Latest Sign
That Consumers Still Prefer
More Traditional Offerings
By GARY MCWILLIAMS
Staff Reporter of THE WALL STREET JOURNAL
November 2, 2005; Page A1
The personal-computer industry's march into the living room is
proving to be a slog.
A few years ago, the nation's Big Three PC makers charged into the
market for big-screen TVs and digital cameras and music players,
counting on their PC prowess to catapult them from the home office
into home entertainment. They planned to exploit PC-style economics
-- based on off-the-shelf components, low markups and high turnover
-- to give consumers new choices and offer the big electronics
retailers a lesson in low-cost selling.
…
Bob Frankston
http://www.frankston.com
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