Tuesday, June 26, 2012
Disintermediation Is Coming To The Online Media Industry
One little company has disruptive technology that is set to transform the entire online media space.
Marc Ostrofsky in "Get Rich Click!" says 'Disintermediation: A New World for an Old Idea".
It means "eliminate the middleman". Through the Internet, a company can deal directly with customers instead of funneling supply through distributors, wholesalers or brokers".
Well the online media industry didn't get that memo yet, but soon will.
Each piece of media needs to be transcoded so all of the various media players can view it. With the iPhone and iPad some media cannot be viewed at all (Sorry Flash).
In order for the new Hershey's Quik ad to run on all players they have to create SEVERAL versions so every device and every OS can play it. Dumb and antiquated.
Just imagine if websites operated that way with browsers. You would be constantly having to update your Explorer, Firefox, Chrome and Safari. Browsers are designed so they can read any website (URL). In other words it doesn't matter what browser you use to surf the Net.
For content sites like Yahoo, it's not a problem to publish new content because it's mainly text. For video sites and advertising agencies it's very costly to publish new content because SEVERAL version have to be made so ALL devices/OS can view it.
As the video boom grows this becomes an even bigger problem, not because there will be more pieces of video uploaded but because the varying devices that can play video is exploding (smartphones, tablets, DVRs, TVs). More video and more devices/Os creates a huge problem that this little company is solving.
That same concept is coming to online media and it's going to transform several multi-billion dollar industries/companies.
Very similar to the ebook industry, where authors could self publish and get their "story" out to the masses without the need of a publisher, the video industry is set to undergo that SAME TRANSFORMATION.
A little company with disruptive technology enables ANY piece of online media to be played WITHOUT a player. No updates or plug ins. No transcoding.
Devices that will be impacted include: cell phones, webcams, surveillance cameras, DVRs, and TVs. If it creates, distributes or plays video ON or THROUGH the Net, it will be impacted.
The middleman/middlemen, such as the transcoders and content delivery networks will be eliminated.
Any device and any operating system with an Internet connection can play any piece of media content.
That means Joe Consumer can create, upload and stream any type of online media WITHOUT these middlemen.
Hershey's will need to create JUST ONE version of an ad and will know that it can be played by 100% of the sites they publish it on.
In my book How To Find Big Stocks, I envisioned that soon every person with a webcam or mobile phone with an Internet connection becoming their own TV channel. That time is soon approaching with this technology.
Imagine the possibilities when a video creator can publish/stream his content without the need of a middleman.
We have already seen billion dollar websites/companies once the content creator has control of distribution. Get set for major disruption in the online media space.
This little company already disrupted the recording industry and is set to send shock waves to the online media industry.
If you want to find out what company has this disruptive technology and IP, please visit How To Find Big Stocks Newsletter
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