Often the vision is “spot on,” but expectations of velocity of transformation and adoption are inflated, leading to over-investment that subsequently must be rationalized.
Despite going for growth and market share over profit, many of these companies have created real value, and, instead of massive flameouts that leave everyone burned, I think we are going to see a wave of beneficial consolidation and rationalization in industries that appropriately have seen exceptional venture capital funding: food, transportation andentertainment.
This does not mean that companies will disappear or die, but rather that many will merge or be consolidated, which will enable leaders in these industries to achieve sustainable scale and grow to do even bigger and better things.
Let’s take a deeper look at what this could look like.
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From unbundling and cord cutting to the rise of new content distribution platforms likeNetflix and Amazon, media industry watchers are confused about where people will go forentertainment once the digital dust settles. With that in mind, it’s easy to see that companies in entertainment with strong brands and existing audiences can capitalize on the changing landscape by extending their brand with complementary services to win over consumers.
By doing so, Fandango would be following the example of Pandora, which bought Ticketflyto make the natural progression from someone enjoying a musician on the site to someone buying tickets to their concert.