SPOTIFY LEARNS THE HARD WAY: There are two opposing adages in business strategy. Either pick one thing and do it well or try to be all things to all people. In the audio streaming-scape the comparison accurately sums up the difference between Pandora and Spotify. Pandora is about music, period. Which is why every strategic initiative begins around the concept of serving listeners that next great song and/or helping them discover their new favorite artist. By contrast Spotify has tried to be all things in streaming entertainment, even if that means straying from their musical roots. The best example of this was Spotify’s launch of a new platform for original video content in late 2015. Yes, Spotify is still in the video production space, but you would hardly know that because it hasn’t worked. In the attached Digiday link, Spotify’s foray into video, and the resulting missteps, are laid out in excruciating detail. On one level this example tells you a little bit about Spotify’s disjointed internal decision making process. Then on a deeper level it proves the point that its sometimes better to pick a hill and own it, the way Pandora does.
SHOULD TIM COOK BE LOOKING OVER HIS SHOULDER?: Earlier this week Apple made headlines with the launch of its iPhone X model. But that’s not what interests me about the attached Inc.com article. What’s more intriguing is the idea of Google finally going all in as a smartphone manufacturer with the potential purchase of HTC. This could represent a major power shift in the hardware side of the tech industry, because Apple at its core (sorry), is a device company. So if Google, whose Android operating system already runs 86% of the smartphones worldwide , was able to compete on the device side Apple could have a major problem on their hands. In all fairness, being a preeminent smartphone manufacturer is easier said than done. Google has already tried and failed twice. The first attempt was the disastrous acquisition of Motorola – have you flipped open your new Razr lately? And more recently Google gave it a go with their own Pixel phone – I think my wife may have been the only person to actually buy a Pixel in Chicago. But Google acquiring a proven smartphone manufacturer like HTC would be an entirely different ballgame. It should be interesting to watch this one play out.
THE IMPORTANCE OF WORKING FOR A CAUSE: Finally, I thought I’d leave you with a deep yet inspiring weekend read. It’s the story of the 19th century inventor Nikola Tesla, as told by a blogger named Cory Galbraith in the attached link. No, Nikola Tesla was not Elon Musk’s great grandfather. But he is the genius who invented the alternating electrical current theory which now runs our entire planet’s electrical system. Tesla’s work was used by early 20th century inventors like Edison and Marconi, therefore he is widely considered the original “techie”. Yet Nikola Tesla was as much of an enigma as he was a genius. He wasn’t concerned with money, is considered the greatest math mind to ever live, was a germaphobe, slept only two hours per night, and only had one romantic attachment in his life which was to a pigeon (reread that – I can’t make this up). But as the saying goes, the line between genius and madness is very thin. The reason I’m featuring the story of Nikola Tesla is because he devoted his life’s work only to helping mankind, and not for his own personal welfare. Tesla believed that “working for a cause, not just money, provides us with a purpose.” Makes you wonder what our world might be like today if a few more Tesla’s were running around. (And BTW – even if you don’t read this article at least appreciate the image below. It’s a real picture of Tesla sitting under one of his electrical arc simulators. This would be hard to photoshop, much less invent the real thing.) Inspirational stuff from an amazing mind!
Have a great Friday (and weekend) guys!