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Originally Posted by TheEnforcer
Ok.. the business has changed since the heydays of the mid to late 90's so what would some of you old timers say is BETTER about the business now and what would you say is worse?
Is innovation not nearly as prevalnet in todays climate as it was back then? It seems to me we see less "industy changing" type of innovations now than we did back then but that is expected in a market as it matures. That said, where are we in temrs of market maturity. Granted people are always gonna want porn but when, or do you at all, see online (specifically web browsing) becoming a mature segment like magazines are today?
Would you agree tnat one of the things that is a big problem is the lack of reliable billing alternatives to CC's?
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Great questions. I think the changes we have and are seeing in this industry are no different than the changes seen in every sustainable industry.
Regarding your thoughts on innovation and maturity..i think there are two different issues at work there...
1) Acording to the research they havent been able to find a link between industry maturity and innovation
Harvard Study
(boring I know but for the business types...good stuff)
2) I think what we are seeing is more related to Product Life Cycle....
Any Business or Industry is constantly seeking ways to grow future cash flows by maximizing revenue from the sale of products and services. Cash Flow allows a company to maintain viability, invest in new product development and improve its workforce; all in an effort to acquire additional market share and become a leader in its respective industry.
A consistent and sustainable cash flow (revenue) stream from product sales is key to any long-term investment, and the best way to attain a stable revenue stream is a cash cow product, leading products that command a large market share in mature markets...
thus all the aquisition we see lately. The big sponsors merging / buying big/medium programs...gives them additional member base, affiliates, content and traffic Also, product life cycles are becoming shorter and shorter
(this is very true in our industry..just look at the lifecycle of a mega site or one of the cookie cutter solo model sites of today vs years past) and many products in mature industries are revitalized by product differentiation and market segmentation. Organizations increasingly reassess product life cycle costs and revenues as the time available to sell a product and recover the investment in it shrinks.
Even as product life cycles shrink, the operating life of many products is lengthening. For example, the operating life of some durable goods, such as automobiles and appliances, has increased substantially.
( in our industry a website has an unlimitied operating life) Increasingly, companies are attempting to optimize life cycle revenue and profits through the consideration of plug in feeds / bonus content, buy one site get 40, and pricing incentives when a member tries to cancel.
The concept of life cycle stages has a significant impact upon business strategy and performance. And although there have been some recent innovations I think we have seen a lot of companies making their cash cows better while snatching up market share (NATS comes to mind)...when the dust settles.. and we have matured even further...I think you'll see another explosion in innovation....Cameras have been around a long time...but look how digital photography has innovated in just the last couple years.
OK that was way overboard LOL!
Great thread though TheEnforcer!