HELP! * GREY=local LOCAL HTML version of Foils prepared 31 January97

Foil 46 Scenario: Upstairs/Downstairs

From Future of Multimedia Internet Systems CPS640 MultiMedia and WWW -- Spring 97 Semester. by Marek Podgorny * See also color IMAGE
The Business Environment
Through the late 90's, a number of firms have tried to establish or maintain markets with both the "haves" and the "have-nots."
  • None of the straddlers have succeeded. In the end the rhythms and demands of the two markets were too different to allow useful cross -pollination, and the business market developed into two different sectors:
    • Companies serving "haves" with relationship marketing and a stream of constant innovation aimed at product/service enhancement, and companies serving "have-nots" with traditional mass marketing and constant attention to the lowest possible pricing.
A major factor why certain "haves" elect not to participate in the multimedia market is related to the quality of interactive multimedia applications available.
  • As new multimedia technology began to proliferate in the mid-90's, certain aspects of the market contributed to the it's low market penetration:
    • Application developers were unable to make the interfaces transparent enough for universal acceptance by the diverse consumer base (unlike the telephone or television). There was (as still is) a lack of quality multimedia applications that have mass-market value considering the significant added cost and technical sophistication they require.
    • Costs have not declined over the past ten years to a point where even many of the affluent population can justify the required large expense to take part in the multimedia market.

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