...Walkthrough of Spotify and the Online Music Streaming Buying Process/Cycle Every product and service has a buying cycle. This buying cycle consists of five stages, which include problem recognition, search and determination of alternatives, evaluation of those alternatives, the purchase decision, and the post purchase evaluation. For the purpose of this analysis we will breakdown the product offering presented to consumers seeking an alternative to conventional music listening. The alternative to traditional music ownership being a subscription to an online music streaming service. In this report we will discuss the reason why a consumer would choose the Spotify Music Service over its competitors through the buying process/cycle. Spotify is an on demand music streaming service that allows users to access a library of millions of tracks through a multitude of delivery channels. In this discussion we will breakdown the so-called problems that Spotify solves and explore how it differentiates itself from its competitors. Furthermore we will see how they affect the consumers purchase decision and as a user of the Spotify service I will give a post purchase evaluation of their product. First, in the buying cycle is problem recognition or awareness. Spotify as well as many other companies have recently discovered a new need where people are seeking to increase their exposure to music as well as the desire to discover new music that they normally would not listen...
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...1.Netflix está tratando de encontrar maneras de convertirse en los consumidores la opción número uno, cuando se trata de "online stremming". Ellos están tratando de encontrar maneras para fortalecer las áreas débiles, obtener mas consumidores , y otras formas que les dará la ventaja en el mercado. Si una parte de la empresa es significativamente más débil que el resto, entonces tienen que encontrar una manera para que sea igual o superior que las otras partes de la empresa. Si, el CEO Reed Hasting dice que el futuro de la compañía está en los "stremming", entonces, yo supongo que, van a poner más tiempo, esfuerzo y dinero en la fabricación de la parte de la compañía de su sección más fuerte. 2. Netflix, en mi opinión, es el más fácil, la empresa más barata, más eficiente para ver películas. Algunas de sus ventajas son: Es más barato que la mayoría de los competidores, tiene una enorme variedad de películas y programas de T.V., y se puede acceder a él desde el lujo de su casa, oficina, teléfono/ tablets y entre otros, a diferencia de Redbox. Los recursos que tienen a su disposición sin duda les dan la ventaja. Redbox sería la solución más barata próxima a conseguir una película rápida, pero tienen una variedad muy limitada para elegir, también, tiene que levantarse y salir de la comodidad de su casa para conseguir la película. En un entorno poco saludable, como Estados Unidos, que ya perdió un porcentaje significativo de los clientes porque son perezosos y no quieren tener que...
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...Caso 2 Can TiVo go primetime? Individual a. Realice un análisis SWOT de TiVo y profundice en el apartado de “treats” con un análisis comparativo respecto de la competencia. Tiene como Fortaleza el equipo de trabajo con el que cuenta, sus ejecutivos y sobre todo su CEO, quienes trabajan a marchas forzadas para sacar a delante a la empresa, en cuestión de un oportunidad tiene el trato con sus clientes y los beneficios que brindan a sus clientes con sus productos, en cuestión de oportunidades y las menciones en programas famosos como Sex and the City Una debilidad sería que la base de clientes es grande pero no como se necesita para que TiVo genere utilidades, tienen poca publicidad, plan de precios mensuales y en cuestión de amenazas es su competencia, ya que TiVo es pequeño en comparación a otros en el mercado aunque tenga un producto muy bueno. b. ¿Qué estrategia de marketing debe desarrollar TiVo para generar la base de 1’000,000 de clientes que necesita para empezar a reportar utilidades? Defina la segmentación de mercado y las 4 P’s para la estrategia de marketing. -Hacer uso de un CRM que permita estar en contacto con nuestros clientes actuales y acercarnos a nuevos clientes. -Hacer uso de membresías las cuales cada 3er. Mes del año tendrán un descuento del 10% sobre la factura de ese mes. Personas entre 25-40 años de edad de un NSE A/B y C+, con un estilo de vida cómodo, trabajadores y que gustan de un buen programa de TV al final...
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...Spotify Case Study 1. What do the changes in the marketplace mean for the music streaming industry? Is that even the right definition of the industry? a. Spotify has gained recent competition with entities such as iTunes Radio and Beats By Dre, meaning that music is becoming more accessible to the general public without having to pay for each individual song you want to hear. People are catching on to Spotify’s idea of a monthly flat rate, which is creating more competition in the industry. Furthermore, it is has been discovered that this could be ‘inherently unprofitable’ for Spotify because their margins do not increase as they become larger. Yes, it is an industry because they do produce goods for a certain market. 2. What is the structural attractiveness of this industry? b. The fact that music fits in to everybody’s life makes it an attractive industry because many people basically need it in their day-to-day life. Whether it be driving, working, exercising or just relaxing at home, many people listen to music throughout their daily activities. There was a large opening in the industry because most other options were significantly more expensive than Spotify, so they attracted a large amount of customers very quickly. The idea of streaming music is still catching on, but it is a huge breakthrough in the music industry as a new way to listen to music on the ‘cloud.’ 3. How effectively has Spotify built and adjusted its business...
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...and restrictions on everything. This gives the supplier a lot of leverage and for the most part, they know that they can demand a price of just about anything. I see the potential and threat of new entrants being moderate to strong. First off; many customers have their loyalties whether it be to Netflix, Redbox or a local hometown movie rental. Secondly; pricing, availability and quality are all key factors. Lastly you have to have a large sum of money upfront in order to get the ball rolling. As I mentioned prior, gaining rights from movie companies is not cheap. The rivalry among the competitors is rather intense as they are battling for the best prices, biggest variety, quickest accessibility for the customer, and quality movies (HD streaming, few scratches and number of blu-rays). With the growing increases in technology and home entertainment, there are major forces pushing for change in the movie rental industry. In addition to this; we now live in a world where people want something and they want it...
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...Intro to Spotify Spotify is a revolutionary software which allows its users to stream millions of songs on demand. Users can access music on computers, mobiles, tablets, cars and gaming consoles. Spotify was launched in 2008 by the Swedish entrepreneur Daniel Ek. Since its launch in 2008 Spotify has grew rapidly, available in 58 markets, upwards of 75 million active users of which over 20 million are paying subscribers, all with access to over 30 million songs. Subscribed users pay a fee of £9.99 a month which allows for ad free listening, highest quality audio and it allows the user to create and download playlists for offline listening. Each time a user streams a song Spotify pay the rights holders royalties. Currently Spotify are paying 70% of their overall revenue to rights holders and have paid out more than $3 Billion USD in royalties to date. SWOT analysis Spotify’s biggest weakness is that artists argue they are not being paid fairly, the average amount the artist earns per stream is $0.007 as appose to £12 for an album. Taylor Swift’s decision to leave Spotify generated a lot of bad press damaging their reputation. Spotify’s argument is that they are paying the rights holders a fair price but it’s the record labels who are not paying artists fairly. Also they claim that paying subscribers are paying on average more on music monthly than if they were to pay for downloads and physical copies. Another weakness is that 90% of Spotify’s revenue is generated by paying...
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...buying Beats is best summed up by Tim Cook - “Music is such an important part of all of our lives and holds a special place within our hearts at Apple, that’s why we have kept investing in music and are bringing together these extraordinary teams so we can continue to create the most innovative music products and services in the world.” iTunes moved music purchases from CDs to the online platform in 2000. For the first time in 2013, iTunes music sales declined, this downward trend has continued. The fall has been largely attributable to the rising popularity of online streaming music platforms such as Pandora and Spotify. A similar amount of money to buy one track on iTunes can purchase a one month subscription to millions of tracks on Spotify. Beats has a music streaming platform similar to Pandora and Spotify. By merging with Beats, Apple will be able to tap into the music streaming business. However, some analysts doubt whether Apple needs Beats to achieve this, questioning why Apple doesn’t attempt to develop a similar or better streaming platform internally. Speculation has it that Apple is buying the talent of Jimmy Iovine and Dr. Dre to help them grow their entertainment sector as a whole. Regardless of whether Apple is interested in Beat’s streaming business or their talented leaders, Apple has faith that Beats will bring new innovation, creativity and value to the company. How can Apple create value from Beats With music one of the key foundations of Apple’s business...
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...several community features like Wish Lists that help customers discover new products and make informed buying decisions. Amazon.com operates retail websites and offers platforms that enable third parties to sell products on our websites. We also provide platforms for third-party retailers, marketing and promotional services, and web services for developers. Amazon Prime History Launched in February 2005, Amazon Prime aimed to get customers to spend more. For $79 a year, members got free two-day delivery on an unlimited number of items. In February 2011 Amazon introduced Prime Instant Videos, an unlimited movie and TV streaming service similar to Netflix. It also created the Kindle Owners Lending Library, a digital public library that makes select eBooks available for free, only Prime members got access. Similar to Netflix, Amazon Prime offers instant, unlimited streaming of thousands of films and television series and original programming. Unlike many competitors however, Amazon Prime also allows à la...
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...ABSTRACT Internet has seen a tremendous growth in recent years, especially online streaming. Due to the enormous growth in internet and the World Wide Web there is great competition for reliable network, high download and uploads speeds, good quality streaming of data available on the web. Online streaming poses the difficult problems of quality, reliability, scalability; cost needs to be solved in order to be successful in online streaming domain network. Content delivery networks are the answer for the problems faced by the internet with congestion, limited bandwidth usage and low streaming quality on the web. A client accesses a copy of the data near to the client, as opposed to all clients accessing the same central server, thereby causing a bottleneck near that server. CDNs overcome Internet service degradation by offering a platform to delivery content and services in a scalable manner, and enhancing users’ Web experience. Content Delivery Networks attempt to solve the problems caused by bottlenecks phenomenon encountered by streaming application on the internet .In this paper we discuss the design choices made during the evolution of Akamai’s Content Delivery Network for online streaming media. In particular we look at the design choices made to ensure the network’s scalability, quality of delivered content, and reliability while keeping costs low Key Words: Akamai, Content Delivery 1. INTRODUCTION CDNs overcome Internet service degradation ...
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...Streaming Media: The Tailor-Made Option In today’s world entertainment such as: Television, music, movies, etc. are all available at any time to be streamed through the internet. Streaming media means that data is instantly available where in the it would either have to be downloaded to a harddrive on come pre downloaded like in a CD or DVD. When we stream media we are allowing ourselves to pick and choose when, where, and what we want to spend our time watching or as we say streaming. Streaming media is now providing entertainment that is applicable to one’s individual routine making it tailor-made for us all to enjoy. This means that we, as consumers, have access to huge amounts of personalized data without any wait times or ever having to leave the house. As technology continues to grow and get stronger, we find ourselves purchasing equipment to make our tailor-made services of streaming even better. Between BlueRay DVD Players, Apple TV boxes, PlayStations, and many more. The majority of these providers can easily stream media straight from them. When streaming media is mentioned to most people the first thing that comes to mind is Netflix. Music is in there too but with Netflix one can watch TV shows with majority of the seasons, as well as the movies that Netflix has purchased. It can not get much better than that, even though a person will only have to pay a small monthly fee of $8.99 Netflix pays for itself after one or two movies which could cost up to twenty dollars...
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...different ‘streamers’, which are viewed by hundreds of thousands of viewers throughout the day. The definition of live streaming would be the act of capturing live video and audio feed through the internet. What makes Twitch.tv unique is that it is the most popular live stream site for video game gameplay. From March 2014, there were over 45 million people watching and over 13 billion minutes watched every month (Ohannessian, 2014). It started as a small website by a group of a few friends, and within years it has become a billion dollar enterprise with no signs of slowing down and immense potential. Twitch.tv didn’t always use the handle ‘twitch’, when it first started out it was called Justin.tv named after the co-founder and co-owner of twitch, Justin Kan. The original site Justin.tv was just a single 24/7 live stream of Justin Kan, pretty much like a reality television show (S.A.I.D, 2014). Eventually this led to people wanting to know how to be able to stream themselves and by August 29, 2011 it was rebranded as Twitch.tv and solely focused on videogame gameplay. Along with Justin Kan, Emmett Shear was a co-founder and when they shifted to Twitch.tv he became CEO (S.A.I.D, 2014). The option to start streaming your own gameplay for any viewer to watch is really easy, you just make an account and download the appropriate software and you are good to go. At first streaming was mostly restricted to PC users because all you had to do was download a program, but with the new developments...
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...Case no 4: Restructuring Google into Alphabet Google is valued on Wall Street at $350bn is to be reconfigured so that its big money-spinning Google-related businesses like Search, YouTube, Chrome, Android and GoogleMaps remain part of Google, and its proliferating “moonshot” projects like its high-speed Fiber network or its anti-aging project Calico, or its self-driving carare each contained in separate companies. They will all be part of a giant umbrella group called Alphabet Pros: Google would be run by Sundar Pichai who is one key players in the development of both the Google toolbar and Chrome, two crucial components of the company’s growth. Pichai also oversaw the development of Google apps including Gmail. Google will be run autonomously, with each being able to focus on its own particular business. This would mark a massive shift from the current setup, with Google in charge of a number of diverse companies, some of which are wildly divergent from Google’s core business. Page claims that the move will allow for cleaner operations and more accountability; some experts theorize that the restructuring is an attempt to mollify investors annoyed by Google’s increasingly wild investments. The reshuffle provides the company a bit of insulation from regulatory issues, in the EU. Google itself is still a massive beast, which will have to tread carefully around regulators, but it will be easier to present firms such as Nest, Calico and Fiber as separate entities if they...
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...Raymond Heller MKT/230 December 1, 2013 Marketing Plan R@DIO is a new music streaming service for your computer or your mobile phone. This service allows you to browse through thousands of artists and songs. For each artist we have we supply the listener with every album that artist has made along with every song that the artist has came out with, this allows you to find the exact song you may have been looking for and can not find it anywhere else. You can look up an artist of your choice and choose to listen to streams from them and other artists or you can choose to stream through all of their albums and the bright side of that is R@DIO gives you free unlimited skips. Another feature that R@DIO offers is if you like a song you have the choice to buy it straight from the app itself, instead of searching the internet for that song. You can listen to your favorite artist anywhere you go because R@DIO also haves an app that you can download on your phone, you can either listen to it on your computer, your cellphone or a portable music player such as an iPod. R@DIO will operate through its online web site where many of its customers can go and login and access their playlists and their favorite artists. R@DIO focuses its marketing activities on reaching the people who listen to music, children, teens, young adults, adults, and the elderly, basically anyone who has a general interest in any kind of music. Market research shows that these are the customer groups that are most likely...
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... 7 Netflix’s Cancellation of Qwikster 7 Conclusion 8 References 9 INTRODUCTION Company Information Netflix Inc., established in 1997 and headquartered in Los Gatos, California offers internet subscription service, streaming television shows and movies. Subscribers of Netflix can watch unlimited television shows and movies streamed over the internet to their televisions, computers and mobile devices. Currently, Netflix offers DVD-by-mail (delivered directly to homes) only to its United States subscribers. The company obtains content from various studios and other content providers through fixed-fee licenses, revenue sharing agreements and direct purchases. Netflix markets its service through various channels, such as,...
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...Netflix Case Analysis Netflix is an American provider and the world's leading internet subscription service of on-demand streaming media in the United States, Canada, Latin America, the Caribbean, United Kingdom and Ireland and flat rate DVD-by-mail in the United States. Netflix members can instantly watch unlimited films and TV episodes streamed over the internet to more than 700 devices for about $7.99 a month. With regards to increasing the influence of the Netflix brand, expansion into the video game industry could be an option, however various factors such as competitors, viability and sustainability of the company as a whole need to be further analyzed in order to assess whether this proposal is feasible. Competitor Analysis AREA| NETFLIX| HULU| BlOCKBUSTER| REDBOX| market share| 55%| 35%| 5%| 5%| Subscribers| 23.6 mil| 24 mil| low| 12 mil| Brand Popularity| HIGH| LOW| MED-HIGH| MEDIUM| start date| 1998| 2007| 1985| 2003| Revenue in 2011| 705.7 mil| 420 mil| bankrupt| 363.9 mil| Revenue increase from 2010| 29.00%| 48%| | | Growth in customers| 30%| 50%| | 30%| (in 2011)| | | | | Netflix's success has inspired a number of other DVD rental companies both in the United States and abroad, but none of the purely online companies appear to approach Netflix in terms of market share or revenues as can be seen above. Hulu is a close second in terms of Market share and it can be seen that its entry into the market was nearly...
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