The Smart Techie was renamed Siliconindia India Edition starting Feb 2012 to continue the nearly two decade track record of excellence of our US edition.

November - 2002 - issue > Cover Feature

Media, Entertainment, Technology: Game On

Ravin Agrawal
Sunday, October 27, 2002
Ravin Agrawal
AS A LOS ANGELES-BASED VENTURE INVESTOR whose limited partners are primarily out of the media industry, I have been both amused and exasperated over the past five years to watch entrepreneurs and fellow VCs discover how deeply skeptical I am about the investment prospects for digital entertainment-related technologies.

It's not that I don't want to enjoy the fruits of an always-on tsunami of packetized audio, video, games, text, and images distributed seamlessly from every room of my home to my car, my mobile phone, and anywhere I remotely log in to the network. And it's not that I don't believe that this world will ultimately become a reality.

It's just that I believe it will still take a reasonably long time to materialize fully. Entrepreneurs and VCs are right to focus on the "enabling technologies" layer of the stack, but even this strategy gets tripped up by the adoption cycle.

For venture investors, timing is a critical issue. If you are too early to a market, you will lose money. If you are too late to a market, you will lose money. Digital media is an area where, for the past ten years, entrepreneurs and venture investors have consistently underestimated the adoption curve, which will likely continue to lag for several reasons:
•Digital media and entertainment rely on the adoption behavior of millions of consumers, a much more capricious dynamic to judge than the enterprise buying habits of 5000 CIOs or CTOs

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