The Significance of Major Media’s Presence at CES

One significant development at this year’s Consumer Electronics Show (CES) was the show floor booth presence of two major media companies; NBC/Universal and Sony Pictures Entertainment (SPE). 

NBC/Universal had their own booth dedicated to their network programs.  Booth staff gave away 2GB thumbdrives from SanDisk (an NBC/U strategic alliance partner) that could be filled with protected content selected and downloaded from many kiosks scattered throughout the booth. 

SPE had a large montage kiosk within the Sony Electronics booth illustrating the many devices that could receive Sony television programming; ex. phones, PSPs, computers, and TVs.  It also showed a bit of the interactivity associated with that content.

Why is this significant?  Many years ago there was a statement by a Studio head – I think it was Sumner Redstone but I cannot locate the reference – along the lines of ‘consumers don’t buy distribution channels.  They buy content.’ 

But as distribution methods proliferate in incompatible and competing products and services, studios are now seeing value in at least two things; 1) picking a limited number of distribution platforms for which they develop (including open platforms), so resources are appropriately balanced between creating new, rich entertainment experiences and accommodating platform differences, and 2) using the demand for their content to drive consumers to the distribution methods that best serve the studio’s creative and business needs.  Both of these came into play in the recent movement toward BluRay over HD DVD.

On the CE side, there is an emerging understanding that accommodating the needs of Hollywood could lead to more efficient, directed innovation that will accommodate a more creative and engaging consumer experience.  Or to put it another way, Hollywood has areas of expertise that complement those of the creative people in the CE industry.  It is in both party’s benefit to work together cooperatively. 

There is growing recognition that these two creative communities are better off working cooperatively together, whether it be in business partnerships or within divisions of the same company.

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