The Paradox Of Innovation: Renew Or Die

The world begins to turn the page in one way or another after a historic health situation. And with this return to the closest thing to the previous normality, some activities have to reinvent themselves again. Some sectors knew how to take advantage of the wave of new customs knowing that it was a transitory phenomenon. Such is the case of the supply segment to reduce the risk of contagion. The demand for face masks and antibacterial gel is not the same as it was several months ago. However, the latter is not the only activity that must make a quick evaluation of the future to ensure its long-term survival.

Entertainment is an area of ​​the market that has been strengthened since the previous industrial revolutions increased the free time of the population. That time away from factories and offices had to be satisfied with various options. In the beginning there were circus performances, operas, plays and concerts. With the passing of the decades, the offer of films increased in theaters and then in homes. Series that have managed to carve out an important niche among audiences have recently been added.

Focusing on the market for series and movies is not for less. In recent years we have seen several revolutions that have made us think about what new paradigms will dominate the market more or less regularly and permanently over time. Despite the incessant and continuous transformations, some business models are usually stable and profitable for a good period of time.

Before, the movies were shown in theaters and after a while they went to the small screen. Then came the DVDs and they had to live with the movie theaters with a slightly shorter window of time. With improvements in broadband internet access, stable servers, secure platforms and the confidence of content producers, we are experiencing confrontations between the world of cinema and streaming to determine which of the two is the primary mecca.

The well-known platform of the red N managed to innovate a market many years in advance. A well-known case study in Marketing is the error made by the dominant VHS and DVD rental brand at the end of the 20th century for not accepting the offer of the, then incipient, movie rental company by mail and today a movie online rental platform. Time passed and today the business model of the latter has already been replicated by almost all content networks. The streaming market previously seen as a solid monopoly today has diversified despite the efforts of the first brand that convinced us to contract a monthly plan to be able to see all the elements of its catalog from the comfort of home creating unpublished content without the expected results.

In various contests dedicated to rewarding the best of cinema and series, the debate has been put on the table as to how much longer the products that are not screened first in cinemas or television networks will not be able to compete on equal terms with their equivalents that they still do. Although the health crisis drove many people away from movie theaters despite the increase in quality free time due to working at home, the trend in some regions of the world shows a kind of boom in theater attendance.

The lesson of the case presented today is that innovation is not an end: it is a journey. Once you have found a model or offer that appeals to your target customers, you should work hard to anticipate their future needs as much as possible. No matter how secure the panorama looks, there will always be competitors looking to improve what already exists or, where appropriate, replicate it. To promote innovation within brands, Market Research is a fundamental investment. Do you want to start innovating in your brand? At Acertiva we can help you.