a) Compare your firm to its traditional alternatives, i.e. a delivery of physical goods. What are the efficiency gains from streaming digital content compared to the old business model?

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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a) Compare your firm to its traditional alternatives, i.e. a delivery of physical goods. What are
the efficiency gains from streaming digital content compared to the old business model?
b) Explain how a digital streaming company is able to offer all its content as a bundle with a
fixed monthly payment but a firm selling individual goods is not
c) Two main alternatives of revenue collection for a streaming service are fixed subscription
fees and ad supported service. Describe the logic that you would use to determine which
model (or both) is better for the firm
d) What's the expected impact of competition to the overall quality of service in the market?
e) What are the overall welfare impacts of streaming services from the point of view of your
firm, its consumers, and the content providers?
Transcribed Image Text:a) Compare your firm to its traditional alternatives, i.e. a delivery of physical goods. What are the efficiency gains from streaming digital content compared to the old business model? b) Explain how a digital streaming company is able to offer all its content as a bundle with a fixed monthly payment but a firm selling individual goods is not c) Two main alternatives of revenue collection for a streaming service are fixed subscription fees and ad supported service. Describe the logic that you would use to determine which model (or both) is better for the firm d) What's the expected impact of competition to the overall quality of service in the market? e) What are the overall welfare impacts of streaming services from the point of view of your firm, its consumers, and the content providers?
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