Education Of The Human Mind
The Entertainment Value Chain We've seen lots of activity along this value chain lately. NewsCorp/DirecTV and the abandoned Comcast-Disney effort are/were attempts to meld distribution and content. Time Warner is still trying (with little success) to combine distribution, content, and apps. Device makers like Apple and Gateway represent efforts (one successful, another not) to extend beyond devices. Palm and TiVo are examples of relatively new device-app combinations. Apple is grabbing three pieces of the value chain with its iTunes product.
Why all this jockeying? We see three trends driving vertical integration.
1. Everyone is (rightly) nervous. Each link has more competitors than ever before. Cable and telcos are stepping on each other's turf. Distributors like Comcast own their own content properties, siphoning eyeballs and advertising. PC makers like Dell are moving into the CE space. Retailers like Circuit City will compete with cable and telcos to install and service......
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