Loyality is very skew’d

Chris Anderson points out an interesting power point presentation from a company called DVD stations ptt/pdf Their business is DVD rental kiosks. The kiosks print DVDs on demand and have really fast connection back to the mother ship. Like all attacks on a distribution channel the upside comes from unlocking value that couldn’t get thru the channel beforehand. In this case the long tail of content. There are some nice charts showing how much value there is out there. One curiousity, they have a little budge in their revenue for movies that are around 9-10 years old, what’s up with that?

I was interested in two charts. The first one shows a portion of their sales pipeline, it shows that a few customers account for a large chunk of their revenue. You gotta love the labels marketing people put on the folks in various stages of their pipeline.

The second chart shows which channels distribute thru and how much revenue comes out of each. Since I don’t watch cable TV I was surprised how much is premium cable and video-on-demand. This is pie is of course a slice of yet larger pies, i.e. the entertainment pie. In the future the big slice is going to be neighborhood puppet theaters – you heard it here first!

Of course I suspect that both these pie charts are just power-law curves, but ironically they don’t display that. They want to be an elite. For example, in the customer catagory space that leads to inevitably into pricing discussions and then into the new dark ages of DRM content.

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