This is a summary of Dan Lyons‘ Business of Software 2012 presentation.
Dan Lyons is the writer behind the Fake Steve Jobs blog, which at one point was supposed to be turned into a TV show. In the process Dan learned that the TV business is completely broken. Lesson learned – writing a blog is way more fun than writing a TV show.
Steve Jobs called mobile the post-PC era, because he got his ass kicked in the PC era.
The global population is 7 billion, and there are 6 billion cell phones.
Mobile is the fourth wave of IT. Bill Gate’s vision was that someday there would be a PC on every desk. Mobiles today are more powerful than PCs at that time. Mobile is the $100 laptop.
Mobile is a new mass medium that’s bigger (and better) than TV. Mobile is:
A tale of two Internets: PC vs. mobile. Windows PCs accounted for less than 50% of Internet connected devices in 2011. Four years ago Windows PCs accounted for 95% of Internet connected devices. As with TV, hardware leads, content follows.
Apple is today’s RCA. A $112 billion business that didn’t exist eight years ago. There is a growing (and risky) dependence on mobile. Apple knows it’s about controlling the content, not the hardware. iOS revenue accounts for 2/3′s of Apple’s overall revenue.
The mobile wave is just starting, but bear in mind the story of RCA. By the 1980′s RCA was shutdown.
As mobile grows, what’s happening to TV? TV is already killing itself. There is a generational shift – young people are tuning out TV and using YouTube more. YouTube has lots of stupid videos, but the money is real. Memes are extremely short-lived TV shows. Check out Cats with Bread.
75% of YouTube users are mobile. Google has invested $300 million on content; doing an end run around the TV business.
Are companies becoming more like TV shows?
Today’s hit shows:
These are still the early, experimental days. There will be numerous flameouts:
New world: light, fast, fragmented, ephemeral. Audience is in constant motion.
Who gets hurt?
Why don’t online ads work?
Shift to mobile is hurting Facebook, Google and Pandora (i.e. web-based companies).
But, what if we reinvented advertising? Make it all about context – not just who, but when and where and what they’re doing. However, mobile devices are incredibly personal, so we must be careful not to violate the circle of trust (i.e. don’t be creepy). This has high potential if implemented properly – the ability to reach 7 billion people on the Internet. Two things we need:
When you bring in a reporter for a story, have a story to tell. What makes a good story?
Follow Joseph Campbell’s Hero’s Journey when crafting a story. The idea is that every story is about a hero that overcomes obstacles. So, who will be your protagonist? People don’t like to talk about their failures, so if you are willing to expose yourself you have an opportunity.
Example of a bad pitch: “I saw the article you wrote on company A and I represent company B.” Once a reporter writes about a topic he is good for a year.
What do print journalists need? Like everyone else, they need to impress their boss.
What about bloggers?
Every once in a while you get to see how corrupt and craven we are. Yes, you can buy off a blog. It usually involves Apple since any Apple story drives a lot of traffic. Apple turns reporters into courtiers. Pogue, Mossberg et al. must get Apple devices first – if not, they’re dead. Since Apple does not tolerate dissent, those that get their hands on Apple devices first will always write positive reviews; fearing that saying something even slightly negative will get them banned from being the first to receive the next batch of new Apple products. Think of the recent huge failure of Apple Maps, and the strange lack of its mention from those that reviewed the iPhone 5 before its official release. Strange isn’t it?
It’s all about building relationships and being useful.
However, be careful what you wish for.
BUSINESS OF SOFTWARE – FOR PEOPLE BUILDING GREAT SOFTWARE BUSINESSES.
This year will be the 7th Business of Software, a three day conference for founders who want to build sustainable, profitable software businesses. BoS has always been a special conference for our delegates and we want to keep it special.
Attendance is restricted to just 400 attendees in 2013 and we have 200 places taken and the next 100 tickets (as of April 20th) will be sold at the second Early Bird Rate.
If you want to see all of the action from Business of Software 2012, the videos of the talks are available in one place now: