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100 second reflection for week 8
Think for 100 seconds, and summarize the key things that you learned in the class in week 8 (information goods and Hulu case).
Information goods have evolved with digitization, enabling companies to become innovative with their distribution processes. Companies like Netflix and Hulu acquire licenses from content providers to stream popular movies and television shows online. For a low monthly subscription fee, members can watch content from multiple types of devices and at any location of their convenience, as long as there is internet connection. This supply chain model is being replicated in other industries, like music and fashion, with companies like Spotify, Pandora, 8tracks, Rent the Runway, ShoeDazzle, etc.
Because of digitalization the distribution of information goods has become very easy. Once the good has been produced, it is cheap to distribute the information over the internet to any user. This creates an easy supply chain. Companies don’t have to deal with the logistics of shipping to a customer home. The customer can simply log in and stream the video they want, or book they want to read, or song they want to hear. The supply chain is cheap and it allows for the companies to charge low fees for their services.
Companies like Netflix and Hulu provide a good example of how to stay cost competitive by utilizing a business model with information goods. Due to the digitalization of Netflix and Hulu companies like Blockbuster no longer exist. Information goods create a less costly business model since the distribution is over the internet. It also creates a convenient purchase for buyers since items such as movies, books, music, etc. can be used instantly.
Whats great about companies like Hulu and Netflix is their ability to not only adapt to the changing demands of customers in regards to media entertainment, but they have also reshaped consumer behavior. Both Hulu and Netflix have provide new platforms through which consumers can watch almost anything. As informational goods suppliers, Hulu and Netflix have truly created very successful and profitable business models that continues to reshape how and where consumers can access their demanded products.
I learned the importance of platforms in the digital world and in regards to information goods. Hulu is a platform for televison and movies that connects the customer to their favorite shows at anytime. Being a platform is very competitive and typically only one platform will survive in the industry. VHS was the platform that everyone would use to watch home movies, then the DVD came along and dominated the market. VHS is virtually non-existent now. Hulu needs to constantly stay at the top of its game or its possible it will become extinct if a better platform comes along.
In week 8, with the Hulu case we learned about content distribution and why we need intermediaries such as Hulu. We need these types of intermediaries because due to technology, the world is flat and it’s very easy for sellers to reach the buyers. Hulu adds value through aggregating content/convenience, ratings, tailor advertisements, aggregate demand and syndication. In addition to the Hulu case, it’s important to meet customer needs and have the products where they want it, however there is a cost to meeting the needs of customers.
In week 8 I learned the importance of platforms in the digital world in regards to informational goods. Hulu is a platform for movies and shows that its customers can access very quickly and at any time. Platforms are a very competitive market and typically only one survives in the industry. Movies used to be platformed by VHS, until DVD’s were born and took over, which made VHS basically non existent. Hulu and Netflix are the two platforms in its industry, and they both need to stay on top of things or else there could end up only being one.
Week 8 we mostly discussed platforms in the digital world. The case talked mostly about Hulu and Netflix. The emergence of these kinds of companies put physical video stores out of business. As you mentioned in the past Platforms are usually one company, and recently it is evident Netflix is much more popular then Hulu.
Hulu and Netflix are doing the right thing in today’s economy. They are capitalizing on society’s need for now, but also the need to stay cheap. With Hulu and Netflix, users have access to anything they want at any moment, at a fraction of the cost of cable.
In week 8, we discussed platforms in the digital world, specifically Netflix and Hulu. Their convenience and low cost have allowed them to create very profitable businesses and have reshaped how consumers get their entertainment.
Week 8 highlighted that with the increase in digitalization, the importance of information goods has grown. Information goods have been transformed by the digital market with innovative services like Hulu and Netflix, which offer consumers a cheaper and more convenient alternative to physical goods, such as CDs and DVDs. As a result, such services have created a very competitive market for acquiring rights to information.