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Does the digital distribution model make sense?
I say "sensible" in that they're basically emulating the digital distribution model already in place on PC with a platform like Steam.
I'm thinking the real reason that the media companies haven't adjusted to a digital distribution model isn't because they're moronic and slow.
Teabox, the startup that pioneered the digital distribution model for tea sales, has raised nearly $15 million from its backers to date, for example.
They've capitalized so much on the iTunes store and the digital distribution model so much that to make a commitment to a new disc format would be ridiculous.
Traditional video rental services are closing their brick and mortar stores and moving to an on-demand streaming digital distribution model.
Similar(54)
Established media companies have been shrinking as digital distribution models take over traditional ones, because the economics don't work.
"If five companies with a market share of less than 50 percent pose a threat to nascent competition from digital distribution models," the letter says, referring to the e-books case, "does one company with a market share above 40 percent pose a similar threat?" In a statement, Universal countered several of the letter's points, most strongly the e-books analogy.
Consider the potential for old-line media companies faced with falling revenues as digital distribution models take market share and compete for advertising dollars.
Many are focused on the distribution side, Liu says, with MOOCs having become of the more prominent examples of the new, digital distribution models now taking off within education.
Analysts suggested that the market for peripheral-based rhythm games may remain stagnant for three to five years, after which sales could resurge because of digital distribution models or the release of new video game consoles.
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