Apple Net Gains 88% as iPod, Mac Sales

From last day's Wall Street Journal, Apple Inc. reported its profit increased 88% to $770 million and revenue jumped 21% to $5.26 billion because the lower costs on components like flash-memory chips for its iPod products. The company's shares surged 6.3 percent in extended trading. With sales growing 36 percent—more than three times the industry growth rate, the Mac is gaining market share.

Why apple can succeed? Apple started the personal computer revolution in the 1970s with the Apple II and remade the personal computer in the 1980s with the Macintosh. Today, Apple leads the industry in innovation with its computers, OS X operating system and iLife and professional applications. Apple also spearheads the digital media revolution with its iPod portable music and video players and iTunes online store, and will enter the mobile phone market this year with its revolutionary iPhone. Apple never stop looking for innovation to differentiate its products and lower its cost to catch up more market share and profit, it always lead the market trend and the industry.

Whether Time Warner Should Reduce its Cable-TV Holdings

From an article of The Wall Street Journal, April 17th, the world's biggest media company- Time Warner Inc. is considering whether it should substantially reduce its cable-TV holdings over time. Cable is the biggest contributor to profits in Time Warner. Time Warner 2006 revenue got $11.8 billions in Cable System and $10.3 billions in Cable Networks, which counted about 48.3% of its total revenue. Since it already owns AOL, some executives in Time Warner wonder whether it should get out of cable and double down on the Web by buying another major internet company. This issue will be put at a meeting next month before the board.As we know, when the internet emerges as a viable venue of watching TV, the long-term future of cable is murkey. Of course, a totally exit is the least case to be adopted. If Time Warner gradually reduce its most stake, say around 80%, in Time Warner Cable Inc. through acquisitions would be a good idea. Getting rid of big part of its cable holdings will make Time Warner more reliant on its role of a provider of filmed entertainment and print and web content. The fact is whether Time Warner get rid of or reduce a majority of the cable hodlings, it is a sign that the cable industry is shifting. It would free up resources for more investment in the web. Whatever Time Warner will do, it should try the best way to build their shareholders' value.

The Trend for Business Model in Media & Entertainment Industry

As high-speed access becomes easier, having the right kind of access and device is a prerequisite for new media experiences and an incentive to try new experiences. When a device enters the market, consumers may ignore some of its advanced features. If the device is not easy to use, has limited functionality or does not fit the user’s lifestyle, it will be underutilized. Even it takes some time for consumers to discover and experience the full potential of new products or new kinds of access, the process of innovation and experimentation is crucial to speed up consumer interest and demand. The excitement and improvements in usability keep leading-edge consumers engaged. With media-capable devices in increasing supply and consumers expressing interest in adopting those features, media companies are attempting to catch their share of the new action. For example, Video on the Apple iPod demonstrated positive results at the outset.

Encouraged by available bandwidth and interactive multimedia possibilities, consumers are now looking for new roles. The falling prices of media editing and recording equipment and software have put the tools of the trade within reach of almost any talent. The result is a combination of the roles of producer and consumer. With the rising popularity of networking on the Internet, producing content is not an endeavor anymore. Communities – gathered at wikis, blogs and networking sites – create, experiment with and refine content collaboratively. YouTube is a prime example.

New kinds of media experiences necessitate new business models. As companies enter emerging channels, they must be willing to cannibalize a bit of their current business to grow a new one. As they begin experimenting with new business models, media companies need to have a specific set of business goals and a strategy for how they will accomplish these goals in.

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