Media companies struggle to build technology
Most media companies have struggled to become technology companies.
Why it happens:
- HR: Great engineers prefer to work in companies where they are the primary value creators. In most media companies, the technology team is seen as support.
- Poor economics: Media is a low ARPU business and hence cannot afford great engineers.
- Lack of vision: Most media companies tend to reinvent the wheel that eventually become cost-centers instead of adding to competitive differentiation.
Pixar: Most technology-first companies think capability-first. In contrast, media and other consumer Internet Products companies think audience-first. For example, Lucas Films, the makers of Star Wars, couldn’t make the most out of Lucas Films Computer Division. Steve Jobs bought it and converted it into Pixar, which too at its core initially was a tools company.