BBC warns operators not to protect core business at expense of innovation.

The broadcaster on Thursday used Kodak’s recent Chapter 11 filing to send a warning to service providers: do not fall into the trap of marginalising innovative technologies over fears it will cannibalise your core business.

The camera manufacturer was the first to develop a digital camera. However, as global BBC iPlayer general manager Matthew Littleford explained, Kodak’s biggest single revenue driver at the time was sales of chemicals used in photographic film.

“How could a company which invented the digital camera have gone bankrupt?” he asked during IP&TV World Forum. “Well, they came up with the idea and that idea was rejected by the owners because they feared it would cannibalise their core business.

“They didn’t cannibalise their core business but the rest of the market did,” he said.

Littleford equated the invention of the first digital camera to video-on-demand (VoD), and cautioned content providers to avoid repeating Kodak’s mistake.

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Source: Totaltele.com