While Shrek 2 and Harry Potter books have been some of the hottest products we have seen during last few years, nothing compares to the success of iPod (Related article: Business model transformation at Apple) when it comes to redefining how we live our lives. Merrill Lynch estimates that Apple's iPod business in 2006 could be as much as $6 billion, or depending on the prices, somewhere around 60 million units (assuming an average price of $100). That is an impressive number to achieve in such a short period of time. (Related article: Apple Computer provides luxury for the masses)
And did you know that just about 2% of music is sold online today?
The manner in which iPod is different is that it has fundamentally changed the market dynamics in the world of music (Related article: Mergers and acquisitions in blogosphere indicate rapid growth). With the explosion in blogs and emergence of iPod as the preferred gadget for digital music, we are moving in a world of personalized content. "I want my own content," seems to be the message from everyone. "And yeah, I don't mind the ads if they don't hit me in the face and are relevant." (Related article: New content delivery systems from Sirius and Microsoft)
Implications of iPod penetration on podcasting
- Despite the explosion in the number of blogs, bloggers and readers, these are still not mainstream. But watch out what iPod technology is enabling: podcasting ("Instead of reading the new content on a computer screen, you listen to the new content on any capable mp3 player on the computer or hardware player such as the iPod," according to the definition developed by Dave Winer.) While podcasting is still the domain of techies, its architect Adam Curry says that days of radio, as we know it, are numbered. The way blogs have changed the world of publishing, podcasters will compete with radio stations and even television stations.
- Blogs have changed the rules of publishing: no fifteen layers of bureaucracy before a story gets approved, write in a language that everyone understands, and say what is on your mind without trying to be politically correct.
- Since the conventional radio stations are controlled by the FCC, the younger generation doesn't care what they have to say when you can have a world without rules in the podosphere.
What does it mean for you?
- Think personalized content. Forget email marketing. (Related article: Email marketing strategy)
- If you don't have a blog yet, get one. And if you don't podcast yet, learn how to do it. It is not for technically clueless folks like me, but I am trying to learn. It should get as easier as blogging in a couple of weeks/months as more amateurs want to podcast. (Related article: The simplest guide to blogging for non-technical folks)
- Traditional advertising is in danger. It is so easy to ignore ads in print media and on radio/television. So better find other interesting ways to connect to the digital generation that is in control of what content it consumes.
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