Chapter 9: online content & media

Question 1

Name and describe 3 revenue models for digital content delivery and give an example for each

Answer 1

There are 3 revenue models for digital content delivery:
- Subscription = users pay subscription fee in order to get access to digital content. Example: Netflix

• A la carte = users pay for the digital content they want to consumer. Example: Itunes (when they launched)
• Advertising supported (free/freemium) = Users get access to digital content for free (the provider makes money from advertisers), but users can pay to get access to certain advantages (such as no advertisements). Example: Spotify

Question 2

Describe the term media convergence in terms of at least 3 dimensions (i.e., technology, content & industry) Apply these three sources to the content industry

Answer 2

Media have converged in 3 different ways:
1. Technological convergence = all media services can be provided by all devices have same functionality (for example: iphone, tablet, …).

2. Content convergence = consists of convergence in 3 aspects:
   - Design: content transformed due to new media. Content can be designed in new ways.
   - Production: content can now be delivered through multiple channels.
   - Distribution: both distributor and consumers have the devices that enable the widespread distribution of content.
3. Industry convergence: merger of media enterprises into firms that create croo-market content on different platforms. Media companies are forming strategic alliances to transform themselves from content providers to content producers (e.g. Netflix).

Question 3

Amazon & Apple are the new digital media ecosystems. Why? Explain?

Answer 3

A digital ecosystem is an interdependent group of enterprises, people and/or things that share standardised digital platforms for a mutually beneficial purpose, such as commercial gain, innovation or common interest. Digital ecosystems enable you to interact with customers, partners, adjacent industries ‒ and even your competition.
Amazon and Apple try to create such ecosystems by offering a multitude of digital products and services that are able to interact with eachother.