Is BitTorrent Realizing That Its Advantage Is In Distribution Technology, Not DRM-Laden Stores?
from the hindsight dept
We were among those who were quite confused last year when BitTorrent (the company, not the underlying technology) decided that its business model would be to give in to counterproductive Hollywood whims and focus on setting up a DRM-protected downloadable movie store. After all, there was plenty of evidence that the market wasn’t particularly interested in such things. BitTorrent’s advantage had always been in the distribution part of the value chain, and yet here it was basically focusing on things like DRM and e-commerce, where its expertise was minimal, as its business model of choice.
Since then, BitTorrent (again, the company, not the technology) has been almost totally lacking from any discussion about downloadable movies.
So, it’s hardly a surprise to hear that the company is laying off a bunch of employees, focusing mainly on its sales and marketing staff. This likely means one of two things: that its business is not doing particularly well, and senior management has decided to scapegoat sales and marketing under the false belief that a new team will somehow magically make things work, or that it’s realized this was a bomb of a business model and is about to move in a totally different direction, that requires different skills on the sales and marketing side.