If the quote below is an accurate reflection of his opinion, I’m surprised Sony CEO Howard Stringer hasn’t called for Michael Lynton’s resignation. Period.
I’m a guy who doesn’t see anything good having come from the Internet. Period.(The Internet has) created this notion that anyone can have whatever they want at any given time. It’s as if the stores on Madison Avenue were open 24 hours a day. They feel entitled. They say, ‘Give it to me now,’ and if you don’t give it to them for free, they’ll steal it.”
Sony Pictures Entertainment chief executive officer Michael Lynton
The media dinosaur isn’t yet extinct. Like the analogue one before it, the digital asteroid known as the Internet has already struck Hollywood, and the dust cloud remnants of its revenue model has already started to blot-out the sun. It’s a desperate case of evolve or die, and Mr. Lynton clearly has no intention of evolving.
It’s not a “notion” — it’s a reality. Yes, we want your movie now. Not after lining up for an hour on a Friday night to pay $100 for an evening of what may end up being terribly mediocre content (the slap-dash recycling of my youth is a whole other topic). So, you’re right: the public is going to steal your content. But keep in mind, Mr. Lynton, Apple has proven that we’ll choose buying over stealing if the price is right.
Oh, and the vast majority of your consumers don’t steal your content. They don’t know how, don’t have the patience for Internet service providers throttling down transfer speeds on BitTorrent, or don’t care to see the latest right away. But it’s starting to get pretty cold without the warmth of a revenue model that hasn’t changed since the advent of the “talkie.”
Gallup asked Americans, "for each of the following business sectors, please say whether your overall view of it is very positive, somewhat positive, neutral, somewhat negative or very negative. For the movie business at net 3% positive, clearly it could be worse: it's not the oil business.
Mr. Lynton should be smarter than this. The 49 year old Harvard Business School graduate has had plenty of time to watch his industry evolve. He’s worked at Disney, Penguin Books, and even cable giant Time Warner. He speaks three languages, but has nothing insightful to say.
AOL's solution to declining subscriber growth: charge more for a dead technology. This price was raised by $2/mo in July of 2008 to combat shrinking revenues
Perhaps that’s not much of a surprise. He was president of AOL International. America Online is one of the telecommunication industry’s greatest flame-outs. What started as a near monopoly on connecting people failed to evolve with the advent of public access to the Internet. Dial-up modems are now virtually extinct, yet AOL continued to hold onto the technology for a decade after it was evident DSL and cable modems were the future. Why? Because of a fear of change — and a fear of losing control of the consumer. AOL hasn’t seen growth in its subscriber base since 2002 as a result.
The days of film, television, and music content creators having full control over the distribution of their content are coming to a close. Those organizations which adapt to the inevitable future of video on demand will have the upper hand. Sony Pictures, if Mr. Lynton’s foolish comments are true, will sadly find itself slowly sinking into the tar pit as the more nimble animals vault past it.
Sources
Women’s Wear DailyMemo Pad
GallupBusiness and industry Sector Ratings
GizmodoAOL Raises Dial-up Prices for Luddites
WikipediaAmerica OnlineMichael Lynton
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Hollywood dinosaur thrashes in tar pit, again
“(The Internet has) created this notion that anyone can have whatever they want at any given time. It’s as if the stores on Madison Avenue were open 24 hours a day. They feel entitled. They say, ‘Give it to me now,’ and if you don’t give it to them for free, they’ll steal it.”


