Red Laser Technology Improves Information Flow

The flow of compensation from consumers to businesses that provide goods and services has long been an evolving process. From the barter system, to gold coins, to dollar bills and then to debit and credit cards, businesses and consumers have been finding more reliable and convenient forms of payment that benefit both parties. The advent of the internet and then smart-phone technologies have increased the capabilities of another important flow process between businesses and consumers - the flow of Information.

Smart-phones are capable of performing tasks thought impossible just a few years ago. Not only can they be used to play such popular games as "Angry Birds" (most time consuming game ever invented...ever!), but smart-phones such as Apple's Iphone allow consumers to source valuable information when making their purchase decisions. Barcode scanning technology had already revolutionized the payment system at most stores (the cashier scanning the barcode on your favorite foods at the local supermarket before letting you know that you now owe him/her more money than you did just last week for example), but now sourcing pricing information using such applications as Red Laser on the Iphone has become more convenient than ever. By simply scanning the barcode on a product in the store you happen to be waiting on your girlfriend to finish aimlessly walking around in, the Red Laser application will let you know the price of the product in the store, the prices at stores in the vicinity as well as the prices available on the internet! Seeing this for the first time made my eyes tear up a little, for the joys of being alive when technology is rapidly changing never cease to amaze me. The Red Laser technology can even give you nutrition information about the food you are about to purchase!

It is this flow of information between consumers and businesses that keeps businesses in the know as to how best to market its goods and services to its consumers. The more information available to consumers, the better prepared they are to make purchasing decisions. Everybody wins!

But come on! You know about this!

Source: Itunes App store, http://itunes.apple.com/us/app/shop-savvy-barcode-scanner/id338828953?mt=8

Source: Red Laser, http://redlaser.com/

Short Term Loss and Long Term Profit?

"Stop downloading my music for free!" That has been the near consensus view of the music recording industry throughout the era of online music dating back to the late 1990’s. The recording industry has reported billions of dollars in lost revenue due to online music sharing websites and programs such as Napster, Limewire and Soulseek. However, has the music industry missed the boat on just how much money can be recovered by taking advantage of this relatively new form of accessing music by their intended customers? 
The most famous battle waged against the online music sharing *cough piracy cough* was the lawsuit filed by the RIAA against Napster at the start of the millennium. Metallica, yes the same Metallica that benefitted greatly from its loyal underground fan base in the 1980’s before the band became a major commercial success in the early 1990’s, was at the forefront, with drummer Lars Ulrich becoming the poster child for the lawsuit. Instead of embracing the inevitable, musicians at the beginning of the internet age chose to fight for every penny they assumed they lost due to online piracy. Radiohead, one of the biggest bands in the world since the early 90’s went in the opposite direction however. In 2007 the band released its 7th studio album via the web. “In Rainbows” was made available for download to fans on the band's website for a price of – whatever you would like to pay! Astonishing! 

Now as you may know I am usually a strong proponent of making that paper (“generating revenue” for you older folk), but in this case I side with Radiohead in their approach to the new age of music acquisition. The band further endeared itself to an already extremely loyal fan base and though many people downloaded the “In Rainbows” album for free, the band still made paper in the present and generated enough buzz to enhance its money making potential in the future. According to a BBC News article in October of 2007, The band's spokesman Murray Chalmers said - “Although the idea is that you can decide what you want to pay, most people are deciding on a normal retail price with very few trying to buy it for a penny.” Radiohead also had a box-set simultaneously advertised for sale on the same website for a small price of £40 which added to the total sales of the album. The bottom line is online music sharing is not as bad as many in the recording industry think. The potential to save on promotional activities by cutting out the middle-man and gain in terms of fan loyalty (i.e. brand loyalty) and ticket sales at live events must be taken into account. Embrace the inevitable because any future restrictions placed on the music sharing industry (it is now an industry of its own) will lead to more innovative ways of beating the system. Capitalism rules!

But come on you all have downloaded music online for free in the past so who am I kidding. Come on! You know about this!

Source:  BBC News, October 2nd, 2007

http://news.bbc.co.uk/2/hi/7024130.stm