The Adoption And Viability Of A New Business Model

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AIMS AND OBJECTIVES The principle objective of this project is to discuss the adoption and viability of a new business model in which Internet streaming media companies have started to develop their own content. By researching the industry trends, we will understand why and how companies use 2-sided platforms to bring together and satisfy two different groups of users. Furthermore, with particular focus on Amazon and Netflix, we will expand the scope of our competitive analysis by exploring other strategies that can be used to gain a competitive foothold across the different media industries. By discuss the sustainability of the different strategies, we intend to argue this new business model will become dominant within the industry of…show more content…
INTRODUCTION Today, the online media streaming of Film, TV and Music is being rapidly driven by the increasing availability and prominence of high-speed internet as well as an ever-increasing repertoire of interconnected electronic devices. The result is a real-time entertainment industry that has experienced tremendous growth over the last decade and is thought to attributable for two thirds of data usage by 2018. Within 10 years the video streaming is expected to almost triple in size beyond $10 billion, driven largely by a more “connected” living room (Kerr, 2013; Davidson, 2015) These advancements are changing the landscape of how media is distributed as business models adapt to diversifying technology and changing consumer behaviour. As a result, more traditional methods of distribution, outlined in figure 1, have been affected. In particular, this impact is of high-profile concern in the music industry, where profits have been impaired as music becomes available on these services soon after its production (Milne, 2014). With regards to TV shows and Films, streaming services are often the last in the release window for content distribution and can only attract users that want to re-watch shows or those they have missed them during the previous windows. At the same time, a greater degree of autonomy provides consumers
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