Quote:
Originally Posted by darryl
To what do the authors attribute this? I would guess the factors include:
1. A lot of streaming sources are generally on a Netflix type model and subscribers are watching a lot more bacause of this..
2. It is also more convenient for subscribers to watch at any time. This also increases the number of movies subscribers watch, and the impulse "buys" are no doubt much more frequesnt.
3. Choosing something subscribers like is also a lot easier online than in a physical store.
4. Binge watching is now possible, available and affordable. Take, for example, Amazon releasing all episodes of a series together.
The convenience and related factors still seem to be powerful even without a subscription model. I have friends who love Google's options on their Smart TV and "rent" movies and TV on it regularly at prices I would associate with old physical video stores.
No doubt there are other factors?
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To finalize what the book says a bit, the last couple of chapters are the author's preferred solution, which is not terribly surprising, the "big data" approach, i.e. companies should look at the data from their customers and come up with a strategy that focuses on place, price and promotion. They point to Harrah's casino company as how a company used the data to determine that by marketing to the low rollers, rather than the high rollers like the Los Vegas companies were, they were able to make more money over the long run.
Some of the conclusions won't be very popular here. For example, they think that content companies should experiment with levels of prices and have more tiers. They were involved with the decision to tier the iTunes songs with some songs going for $1.29 while others go for .99 and think there should be way more tiers that are constantly updated. I think this particular idea is wrong thinking, myself.