Monday, September 12, 2011

Anyone With a Biz Model Selling Physical Media Today Is Doomed (Unless They Change Fast)

Think Blockbuster.  Think Tower Records.  Think of a few other businesses that we cannot longer name because they were in the business of selling physical media and have gone the way of obscured dinosaurs because they did not see what happened when digital media took home.

It started with music when Apple storm in with iTunes.  That iTunes storm is getting bigger by the day.

Then it was Blockbuster when Netflix took hold and, now, it's doing damage to paid television with streaming video.

Get the picture?  If there's a retailer out there that still relies on selling physical media as a big part of this business, they're in trouble.  Deep, deep trouble. And even if they rely on other retail businesses, they could be in trouble as well.  Just ask Good Guys, Circuit City, and CompUSA.

This is why GameStop is trying its prevent when it announced that it was looking to selling more popular iOS devices and looking to selling its own gaming tablet based on the Android OS.  And it also recognize that the future is downloaded content.  

So, don't be surprise if someone buys up Gamestop, Barnes and Noble, or others that are trying to create a digital library and model around selling downloadable content.  And certainly don't be surprised if Walmart or Best Buy also announces their own app stores.

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