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HOW AMAZON'S NETFLIX COMPETITORS COULD BE A SUCCESS WITHOUT MAKING ANY MONEY- WHAT DOES THAT MEAN FOR NETFLIX.

Amazon CFO Brian Olsavsky highlighted the value of video to Amazon it's earnings call. He said that amazon is going to "simnifically increase its content spend" on its video offering because there is better engagement and conversions from prime members.

Amazon makes money based n their subscriptions and other services as pay as you go or rental.

Amazon provides Amazon prime, Amazon Prime is a membership program that gives customers access to streaming videos, music, e-books, free-shipping and a variety of other Amazon-specific services and deals. Amazon Prime is a no-brainer for those heavily invested in the Amazon ecosystem.

Their market position is that they own other alternatives to stream, on apps and other platforms including consoles.

Amazons competitors are:

-Netflix

-AppleTV

-NowTV

-Sky

-Youtube Red

HOW NETFLIX'S BUSINESS MODEL- HOW DOES NETFLIX MAKE MONEY?

Marc Rudolph & Reed Hastings are the owners of Netflix.

Netflix makes money from rental movies on DVDs on Netflix, subscriptions and other services, some costs more than others.

Netflix provides suggestive algorithms to personalise what you are interested at and things you associate with according to the things you have watched before.

Netflix competitors are:

-Amazon

-AppleTV

-NowTV

-Sky

-Youtube Red

Quiz
https://play.kahoot.it/#/k/1cdc61ed-a500-4b4f-a2de-4c2cf002d228/intro
1.what do you call a media institution that is owned by another company -daughter company / subsidiary.

2. a vertically intergrated company is involved in which in which of these processes?licensing -
3. what id it called when a company buys the rights to another companirs bandfreemium-
4. what is it called when a company gives something at no cost soas yo ecourage future payment.subscription-
5. what do you call a buisness builtsynergy-
what is the name of a company that owns another media company?- parent company / conglomerate

case study summery

company Riot Games is a developer of PC games.

a. ownership

Riot games is a subsidiary is a company with the parent company being 'Tencent' who has 100% control over Riot games.

b. operating model

Riot games uses micro-transaction for money making. micro-transaction are in game market, like buying skins or in-game champions etc. `also buying in-game currency like Riot - points which you can buy skins and champions with.

It's a free-to-play game which is a good freemium strategy because many people are willing to try out a 'free' game and if they enjoy it, they will be more active in the game and may buy in-game items with real money.

c. products

- League of legends (2009)- Multiplayer online battle arena (MOBA) styled game- Microsoft windows/ OS X game.

-Mechs vs. Minions(2016) - strategy game- tabletop game.

-Astro Teemo (2013) - Arcade game - Microsoft Windows/OS X game.

- Cho'gath Eats the World (2014) - Arcade- Microsoft Windows/OS X game.

d.market position

Riot Games earned $624 million from League of Legends last year, and that was only good enough for second place on the top-ten free-to-play earnings list. In 2014, however, it's shot to number one, and is poised to be the first to break $1 billion in microtransaction revenues.