Thursday, October 18, 2007
How Not to Think....Pt 18787848
Check this out.
Blackarrow's (anti)innovation, if you can get past the seriously heavy corporatese, is "solutions" which block consumers from skipping ads with PVRs.
Who's missing from the pseudo value chain at the bottom of the screen?
You guessed it - consumers.
I guess I could wax lyrical about the economics of connected consumption, why the shift of control to the edges is inexorable, etc...
But honestly...lolz. How can you think strategically about any kind of business (let alone advertising) in 2007 without factoring consumers into the value chain?
The answer's simply - you can't.
The real point: sometimes, the old dominant design isn't just indefensible - it's also arid and dry of value; there is utterly no economic or strategic point to trying to prop up the rotten beams of a decaying value chain.
I agree. However, consumers aren't Blackarrow's customers - content providers are, and as long as these guys continue to live in a make believe world where consumers are still at their mercy, Blackarrow can make good money.
It's just like companies that supply the RIAA, MPAA etc. with tools to locate "pirates" or inject fake content into p2p networks. There's no doubt (at least in my mind) where the industry is going in the long run, but as long as the obsolete behemoths still have money to pay, there'll service providers hoping take it away.
yeah but seriously - what could be the investment thesis for the VCs on this one? i fail to believe that a frim like polaris validated a business model that sais - we know and indeed have confirmed by our other investments - the notion that value has sprinted to the wings via connected consumption (see investments in Wordpress, etc) but we are willing to take a punt by placing a bet on a company that will piss off the very people whose position in this new value chain we continue to endorse by supporting and investing in the tools that drive the edge economy. Fiing bizarre pardon my french
the great HoneyShed.com went live today