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Digital Entertainment Disruption Has Just Begun

Boot Camp feature for Tuesday, April 13, 2004

When it comes to the entertainment industry, the digital disruption has just begun. Bloomberg Boot Camp, a report on today's technology. While the music industry is still grappling with digital piracy issues……worldwide music sales dropped another 7.6 percent last year…the rest of the entertainment and media industry can learn from the mistakes that have been made. That's according Saul Berman, media and entertainment partner with IBM Business Consulting Services. IBM is out with a report that forecasts seismic shifts that will restructure media and entertainment over the next six years…

"We think that companies that are going to successfully compete in this environment will need to be open to the end consumer, open to digital technology, open to change or evolving business models and opening to more partner relationships."

Berman says there's a danger in trying to dictate to consumers what they can and can't do with digital content they have purchased…

"I think what was learned in the music industry is that if people have the want and the desire to use the content in different ways, increasingly technology may enable them to do that, you want to be part of that equation. You don't want disruptive technologies to destroy your business model unless you're part of creating the new business model."

Berman believes, for instance, consumers might be able to purchase DVD or digitized versions of films…as they leave theatres when movies are released. Bloomberg Boot Camp, I'm Fred Fishkin