Organisations Need To Have The Right Culture To Handle The New Technological Changes

The "right culture" includes encouraging and reinforcing innovation, taking some risks and tolerating experiments that fail. This is the culture that ultimately drives innovation.

(NB The music industry is a good example of technology changing the business model from wax cylinders in 1880s; 78rpm recording discs in 1910s; flexible vinyl long player, eg single and EP (extended player) after WW2; analoguewith plastic records (singles, eg 7 inch and LP - long plays) and cassette players and recorders (encouraged home taping from the radio or original LP) in 1960s; more recently, digitalisation via computer software is facilitating mixing of albums and soundtracks, compact disc (CD) with disc pressing technology, DVD, videos (VHD), video games, starting with Pac-Man and developing into the home computer games; Internet (digital downloading, social networking, such as YouTube, MySpace, etc), and Apple's iPod - combining communications (mobile phone, etc) and music recording/playing (2007s)

- Video streaming impact on TV industry (For example, Netflix is "over-the-top" video streaming that is a threat to all forms of television, including free- to-air). In the first 3 months of 2015, Netflix added 4.9 m. viewers to reach 62 m. worldwide; with share price hitting $US 562. Its market capitalisation is US $34 b. and this is greater than CBS (highest ranking US TV broadcast network that has been in business for decades). Next areas for Netflix to focus on include Japan & China.

Netflix is a virtual private network (VPN) is an extended private network across a public network like the Internet (Max Mason, 2015). It enables a computer or a network enabled-device to send and receive data across shared or public networks as if it were directly connected to the private network, while benefiting from the functionality, security and management policies of the private network. It is a virtual point-to-point connection through the use of dedicated connections. The best way to handle the VPN is true global licensing.

The TV channels are no longer just competing with each other; they are competing with the past. Owing to the vast libraries of content available online, ie

 "...if you make a new TV show, you are really competing with every TV show that has been made before...:
James Murdoch as quoted by Dominic White, 2014a

This has coincided with great reductions in the price for quality digital equipment, eg DSLR video cameras are now just a couple of thousand dollars.
Users pay a monthly subscription. Next likely development is to include advertising as happened with cable TV.
It encourages "binge viewing" with its downloading of all episodes of, for example House of Cards as against the release of one episode at a time of scripted TV. This is forcing the TV channels to re-examine theor traditional ways of doing thing. For example in Australia
i) it is cheaper to use shows from US or Britain than commission original content
ii) there is an increasing focus on live news, event television and sporting rights to guarantee big audiences
iii) commission one reality show and continually replay it until viewers tire of it
iv) as people are time poor but own mobiles, ie able to access content in many different ways like Netflix, Amazon, tablets, etc
NB The market dictates what it wants, ie

"...People have remotes, they watch what they want to and all the networks provide a wide range of programming..."
Beverley McGarvey as quoted by Dominic White, 2014a
 

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