Umair Haque / Bubblegeneration
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Design principles for 21st century companies, markets, and economies. Foreword by Gary Hamel. Coming January 4th. Pre-order at Amazon.


 
Wednesday, August 08, 2007

Macro Note: Context Shock


There are four or five major shocks rolling across the global economy.

The one that's disrupting media is a context shock.

The simplest effect of the context shock is that media consumption, for the first time in a very long time, is actually contracting.

Put another way, as control shifts to consumers, the true economic costs of the massive inefficiencies that plague business models across media markets are surfacing. For example, another way to see this contraction is, for example, to note that people are buying singles instead of albums (extend to news, video, etc).

Another way to see this - a more strategic lens - is as a secular shift of market power to context providers.

Strategists should take (very serious) note - this is the living essence of strategy decay.

-- umair // 8:03 PM // 1 comments


Comments:

Is google a context provider? twitter, facebook or technorati, too?
// Anonymous kenji mori // 5:08 PM
 
 

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