by Paul Rule
New Year’s predictions I avoid doing, but 2009 is too weird to pass up.
Does anyone think this year in the media and entertainment business is going to be pretty much like 2008 or 2007? There’s some scary stuff being bandied about. Some are predicting that major markets could be without print newspapers this year or next. Others forecast high levels of industry layoffs.
So can we make money in our business in 2009? You bet we can, just don’t count on making much of it from selling new gadgets. The money to be made will come from adding value to the gadgets we have now. Don’t hype hardware; sell software. Concentrate on rising above competition to capture and stimulate target audiences. Content won’t just be king, it will be emperor of the world.
Consumer electronics makers won’t like hearing this, but the folks at Best Buy probably will be spending a lot of time figuring out ways to make more shelf space for add-ons and apps that can make the laptops and smartphones they sold last year seem like new.
And since we’re likely to have less money to blow on new houses, cars and high-end electronics, we may find we’ll have more bucks for simple pleasures – more music or other paid downloads and streams, more trips to the cinema, more impulse purchases of cable VOD movies.
So my budget can’t stand an upgrade to the newest home theater marvel. A pleasant ride on a pretty day can make me forget I’m not driving the latest model car. This won’t be the year of the car dealer; 2009 will be the year of the car wash.
Paul Rule is President of Marquest Media Research.