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Gizmo Glut: How Multi-Purpose Platform Proliferation Creates Content Opportunities
 
    12 January 2004
SUMMARY:
 
 
This year's International Consumer Electronics Show in Las Vegas offered a stunning galaxy of devices large and small for consuming a wide array of content sources in multiple formats. Whither standards in all of this? For many the push to get into the hottest devices possible has left standards hanging in the breeze, while others such as Real Networks and IBM opt to open rights-protected content delivery to the widest audiences possible. Much as it may chagrin gizmo producers who want to gain advantages over their competition, it's in the content industry's interest to create an environment where they can deliver content objects to the widest range of devices possible.

This was the year of the multi-purpose device at the International Consumer Electronics Show in Las Vegas. From watches giving weather and news to game consoles that  serve as browsers to flat-panel television monitors that also provide access to broadband Internet content, new generations of electronics are vying for the attention of content audiences that are beginning to grow beyond the strictures of the multi-purpose PC platform and its portable affiliates. Some of these consumers are your basic gizmo gluttons, eager to flash around the latest in electronic status-wear, regardless of its ultimate utility. But much of the electronic convergence is aimed at a broad swath of the public that never took PCs and other advanced electronics very seriously and who are unlikely to do so anytime soon. With more computing power in the average automobile than was found in an Apollo moon rocket and browsable refrigerators becoming a reality, virtually any object that has a source of electrical power today has become a potential outlet for a wide array of multimedia content.

It is such device proliferation that brought forth the very concept of content as a distinct entity that was valuable and powerful. When technology was hidden comfortably inside the bowels of a printing plant, content was hardly a concept at all. Then first with the ticker tape, then phonographs, then radio, then television and finally silicon-based computing, the technology for creating the information and experiences that people valued made its way into the hands of the user. From the beginning of this trend, innovation has been seen as an opportunity for technologists and manufacturers to gain control over content distribution. But with content delivery platforms expected to do multiple duties for a multitude of sources, such device-specific content dominance is becoming harder and harder to effect, a goal that oftentimes winds up slowing down content market penetration rather than accelerating it. While content technology is only going to become more intertwined with both personal and professional lifestyles, its inclusion into more appliance-like devices only increases the necessity for content technology to become more transparent to the user - and more likely to require ubiquitous standards for distribution and use.

With this in mind, I'd have to rate the teaming of Real Networks and IBM for standards-driven multimedia distribution as the most significant announcement at the CES from a content perspective. While others are monkeying with a myriad of gizmos for the home, road and office to capture captive niches, IBM and Real are developing a relatively open framework that will allow businesses to take advantage of virtually any multimedia format on any Real-compatible user platform and apply rights management, ecommerce and billing capabilities in a highly scalable environment. While the collaboration offers opportunities for consumer content, much of its strength is oriented towards bridging the gap between the consumer arena and the institutional space, where the proliferation of multimedia for use in online conferencing and training  is beginning to push the need to integrate these internal  sources with external content more readily in personally convenient venues. With Real's high visibility in the consumer segment and IBM's strong presence in high-powered corporate infrastructure, this promises to be a strong combination for success across the consumer and corporate segments.

Publishers of all kinds would be wise to look carefully at the Real/IBM initiative to examine it as a potential model of success for content distribution and enablement. Just as the original Napster and its descendants seized readily available content format standards very aggressively to forge incredibly powerful content distribution networks, the power in today's content distribution is likely to fall to those who can exploit the converging of multimedia sources and standards in a way that can take advantage of as many platforms as possible in as little time as possible. Real's setup is clever in this respect in that it's Real10 player is able to navigate a number of conflicting content format and digital rights management standards in a relatively transparent method. In other words, if you're someone who's trying to play the captive standard game, there are reasonable workarounds to render that strategy moot without degrading product quality. Vendors in both publishing and technology try hard to invent new gadgets that are hard to resist: their inherent capabilities do not really require new standards to ensure technical quality, but the hope is that clever features will delay the likelihood of truly universal standards. Yet when standards are adopted, it's generally easier to deliver clever features that are valuable to the widest audience possible.

With this in mind it's somewhat of a mystery as to why some content producers and media outlets still struggle so mightily for proprietary advantages through specific content distribution platforms and outlets. In the post-Napster environment it should be clear to publishers that effective standards are the airwaves of the 21st century, providing the universal, objective and predictable delivery medium that allows them to concentrate their investments on the content products themselves instead of on the distribution mechanisms.  There are always new technological niches where proprietary approaches are necessary to exploit new opportunities without standards, but most of today's content rides on standards-driven infrastructure where proprietary approaches will only hinder market penetration across a myriad of devices. The need for this focus will become only more apparent as the delivery of standards-driven digital objects that combine both information and functionality as content becomes more prevalent, reducing publishers' reliance on specific platform providers. These objects will become in effect the digital "paper" of the publishing industry, allowing publishers to create persistent, portable, storable and resalable items consumed through ever-more-clever devices.

Over time, publishers of all kinds will have a great opportunity through content object distribution to recapture the essence of publishing's strength if they become the most aggressive inventors, developers and propagators of universal content delivery standards for high-powered content objects. Whenever publishers fail to do so, they allow others to invent new "airwaves" that are beyond their control, and in the process dilute their potential market penetration. Opportunities for short-term gains outside of standards will always beckon, but focusing on these opportunities will risk being left on yesterday's technology scrap heap far faster than ever before.

- John Blossom

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