Did piracy kill the cinema? Did DVDs kill the cinema? Did VOD kill the cinema? Did Netflix kill the cinema?
No one killed the cinema.
The cinema is alive and kicking, and that's because its competition has never been home entertainment. Cinema is an outdoor experience, so its competition is restaurants, theaters, and various attractions. The fact that you can watch a movie both in your living room and in a cinema doesn't make them the same experience, just like making pizza at home doesn't compete with going out to eat at an Italian restaurant.
More examples?
In the fascinating video attached, you can see how the camera industry has constantly surprised and reinvented itself. Digital cameras evolved and improved, but no camera manufacturer anticipated what was coming next, and the mobile phone completely buried the industry.
Conclusion: Innovation in its own category is simply not enough. You need to understand the alternatives available to consumers, and sometimes they exist in completely different categories.
What's the secret behind the revival of vinyl records?
After all, digital music is much more accessible and affordable.
How did the vinyl record category suddenly become alive, kicking, and selling millions of copies each year, especially to teenagers who weren't even born in the era of vinyl records?
The answer lies in the need for personal expression that teenagers have through collecting. In the past, teenagers collected posters for their personal expression, and today they collect vinyl records.
Defining the category and defining the competition are the cornerstones of marketing strategy, and it's a process that requires a broad macro vision and bold strategic analysis. Only then can you remain relevant in a rapidly changing world.
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