Triple play, go away

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In our Broadband Business Models 2.0 Report we picked on Joost, Iliad’s Free service, Sky Anytime and BT Vision to identify some common themes in distribution systems, but of course we’ve been following many others. We’re seeing some common themes, plus some ideas of our own, that we thought we’d share with you:

 You have to match the right content to the right distribution system. Get it wrong, for example by picking mass market content when you should be deep in the long tail, and you’ll fail. Get it right, for example by giving user generated content equal footing in the distribution system, and you’ll be rewarded.

  • Two-sided business models (with payment from users as well as merchants) generally beat one-sided models.
  • Scale matters in both content aggregation and distribution. Sponsors and advertisers demand it, and distribution efficiency needs it. Few businesses have both. Telcos trying to build both capabiliies as a “triple play” will mostly fail.

Members of the Telco 2.0 Executive Briefing Service can click here to read more