Content that has caught my eye recently, which includes coverage of Amazon, Apple Pay, Facebook’s financial results, the music industry, income inequality among other things.
Vanity Fair has a feature article focusing on the increasingly fraught relationship between Amazon and the publishing industry. The piece charts how Amazon was originally seen as a counterbalance to to the growing power of Borders and Barnes & Noble, but over time it was Amazon that upset the relatively cosy relationships within the publishing industry (albeit at the expense of the consumer).
Whilst Amazon’s hold on the publishing industry appears relatively secure, the company has received a bit of stick recently for its performance in other market segments (most notably the Fire Phone) .
Bezos’ sterling reputation kept few questioning these initiatives, but in recent months that has started to change. A number of recent initiatives seem to be costing more money while not necessarily showing signs of sure success.
Benedict Evans made a strong case a couple of months ago for Amazon’s approach of putting off profits as it invested in new market segments, but Amazon needs to have more winners if this strategy is to work over the long term.
Ben Thompson takes a valuable look at how Apple has carved out a strong strategic position in the payments space by creating a situation of mutual advantage for its customers, credit card networks, banks, and to a lesser degree, merchants:
Technalysis has forecasted healthy growth in the wearable computing category. Whether its enough to provide a lifeline to Samsung and other besieged smartphone manufacturers remains to be seen:
Facebook’s revenue results reported by Benedict Evans point to the company doing a good job of adapting to consumers’ increasing time on their smartphone:
What Facebook is doing a less good of is reducing its reliance on the North American market as reported in Inside Facebook, despite the continued growth of internet and mobile internet penetration in the rest of the World:
Whilst Western consumers are relishing increasing mobile internet speeds, it’s a rather different story for many consumers in the developing world where the cost of data makes internet access a relative luxury. Ben Bajarin talks about the ‘light web’ in which mobile experiences are carefully optimised to reduce the data usage for consumers wary of:
Much has been made of the move by brands from an era of disruption to engagement, enabled by broadening array of interactive digital channels. Given these changes, its valuable to read Tom Doctoroff’s spirited defence of more traditional marketing agencies.
An interesting counterpoint to Doctoroff’s view is Faris who points to the lack of interactivity in the majority of digital advertising, pointing to Honda’s The Other Side campaign as where things should be heading:
You get the idea. I guess I just miss ideas that work on the web, where the user is in control of the interaction. Where everyone gets an interactive experience.
Bradley Leimar takes a look at how banks will look to improve their offering using enhanced digital channels that go beyond simply putting a customer interface online:
We are moving away from a banking relationship defined by the goal of being a customer’s primary financial institution to one where we focus on becoming their primary financial application. It’s no longer about wallet share. It’s about app-driven mindshare – as our customers reach into their pockets for their mobile device or use their glasses or other form of wearable technology and think about their financial relationship choices – before, during, and after a financial moment of truth.
The music industry is adjusting from an ownership to a streaming model. Mark Mulligan argues that the music industry needs to drop the pricing of streaming music if it wants to maximise overall revenues:
Felix Salmon on the other hand focuses his attention on the value of having three dominant record labels in facilitating streaming music services, arguing that an oligopoly in this case serves the interests of consumers.
We take globalisation for granted in the increasingly interconnected world we live in. Given this, it’s interesting to see analysis from Pankaj Ghemawat and Steven Altman which compares how globalised information, trade, people and capital is over the last 10 years:
Thomas Piketty’s Capital in the Twenty-First Century has sparked renewed interest in the issue of income inequality. Oxfam has looked into correlations between income and inequality and health outcomes pointing to some of the more tangible negative outcomes associated with income disparities within countries:
Sorapop Kiatpongsan and Michael Norton’s research points to the vast gap between the income of CEOs and their unskilled workers across different countries, with the wage gap being much larger than most people saw as being appropriate: