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Tag: Netflix

  • How Does Netflix’s Marketing Keeps Subscribers Hooked?

    Netflix is a popular streaming service that provides users with access to a wide variety of TV shows, movies, and documentaries. It was founded in 1997 by Reed Hastings and Marc Randolph in California, USA. Initially, the company was focused on providing DVD rentals by mail but in 2007, it started its online streaming service, which is now the main focus of the company.

    Netflix offers users the ability to stream content on a variety of devices, including smartphones, tablets, smart TVs, and gaming consoles. It provides users with personalized recommendations based on their viewing history and has a range of features that make it easy to find new content to watch.

    Netflix has a vast library of original content, which includes TV shows, movies, and documentaries. Some of its most popular original content includes Stranger Things, Narcos, The Crown, and House of Cards. It also licenses content from other studios, including popular TV shows like Friends and The Office.

    The company has grown rapidly since its inception and now has over 200 million subscribers in over 190 countries. It has become a major player in the entertainment industry and has disrupted the traditional TV and movie industry with its innovative business model.

    The Story of Netflix

    NetflixTarget Audience
    Netflix Marketing Mix
    Netflix Marketing Campaigns
    Netflix Marketing Strategies

    Netflix Target Audience

    Netflix’s target audience is quite broad and includes individuals of all ages and demographics who are interested in streaming TV shows, movies, and documentaries. However, the company primarily targets younger adults and families with its content offerings.

    Netflix’s content strategy is focused on producing a wide variety of original programming to appeal to a diverse audience. They offer content in a range of genres, including action, comedy, drama, romance, and documentaries, so there is something for everyone.

    Additionally, Netflix’s algorithms provide personalized recommendations based on a user’s viewing history and preferences, which helps to further tailor the user experience to their interests. This approach has helped to attract a loyal user base who are willing to pay a monthly subscription fee to access the company’s vast library of content.

    Overall, while Netflix’s target audience is broad, the company’s content and marketing strategies are primarily focused on younger adults and families who are interested in streaming TV shows and movies.

    Netflix Marketing Mix

    The marketing mix, also known as the 4Ps, is a set of tools that companies use to promote and sell their products or services. The 4Ps include product, price, promotion, and place. Here is how Netflix utilizes the marketing mix:

    • Product: Netflix’s product is its streaming service, which offers a vast library of TV shows, movies, and documentaries. In addition to licensing content from other studios, Netflix has also invested heavily in producing original content, which has become a major draw for its users.
    • Price: Netflix offers a subscription-based pricing model, with three tiers of service: Basic, Standard, and Premium. The prices vary depending on the features offered, such as the number of screens that can be used simultaneously and the quality of the streaming video. The company also offers a free trial period to new users.
    Subscription-Based Pricing Model
    Subscription-Based Pricing Model
    • Promotion: Netflix’s promotion strategy is focused on creating buzz around its original content through social media, advertising, and content marketing. The company uses targeted advertising on social media platforms to reach its target audience and has also partnered with influencers and celebrities to promote its content.
    Netflix – Play Something
    • Place: Netflix is an online-only service, so it doesn’t have a physical location. Users can access the service on a wide range of devices, including smartphones, tablets, smart TVs, and gaming consoles.
    Netflix - Online-only service
    Netflix – Online-only service

    Netflix’s marketing mix focuses on providing a high-quality streaming service at different price points while promoting its original content through targeted advertising and content marketing. Its online-only business model allows users to access its service from anywhere, making it convenient and accessible to a broad audience.

    Netflix Marketing Campaigns

    Netflix has launched a number of successful marketing campaigns over the years to promote its content and services. Here are some examples:

    • Stranger Things: To promote the launch of its hit show Stranger Things, Netflix created a marketing campaign that included a retro-style poster, a fake trailer for a non-existent horror film called “The Hawkins National Laboratory,” and a social media scavenger hunt that involved finding hidden clues related to the show.
    Stranger Things – The Hawkins National Laboratory Campaign
    • Black Mirror: In anticipation of the launch of the show’s fourth season, Netflix launched a campaign called “13 Days of Black Mirror,” which included daily releases of trailers, posters, and behind-the-scenes footage on social media, culminating in the release of the entire season on the final day.
    • Bird Box: To promote its post-apocalyptic thriller Bird Box, Netflix launched a social media campaign that included a challenge for users to blindfold themselves and try to do everyday tasks, like walking, with the hashtag #BirdBoxChallenge.
    • The Crown: To promote the third season of its hit show The Crown, Netflix launched a campaign that included a takeover of The New York Times website, featuring articles related to the show’s historical events.
    • Stranger Things x Coca-Cola: In a collaboration with Coca-Cola, Netflix released a limited edition “New Coke” product, which was featured in the third season of Stranger Things. The partnership also included a retro-style commercial for the product, featuring characters from the show.

    Netflix’s marketing campaigns are known for their creativity and ability to generate buzz around its content, leveraging social media and partnerships with other brands to reach its target audience.

    Netflix Marketing Strategies

    Netflix’s major marketing strategies can be summarized as follows:

    • Content Creation and Curation: Netflix’s primary strategy is to create and curate high-quality original content that appeals to its target audience. The company spends billions of dollars annually on producing original series and films to keep users engaged and attract new subscribers.
    The Crown - Netflix's Original Series
    The Crown – Netflix’s Original Series
    • Personalization: Netflix uses algorithms to personalize content recommendations for individual users based on their viewing habits, preferences, and history. By offering a personalized experience, Netflix is able to keep users engaged and satisfied, leading to longer subscription periods and increased revenue.
    • Social Media and Influencer Marketing: Netflix leverages social media platforms to build brand awareness and promote its content. The company also partners with influencers and celebrities to reach new audiences and generate buzz around its shows and movies.
    • Data Analytics: Netflix uses data analytics to gain insights into user behavior and preferences. By analyzing user data, Netflix is able to optimize its content offerings and marketing campaigns to better meet the needs of its users.
    • Customer Engagement: Netflix engages with its customers through various channels such as social media, email, and push notifications. The company uses these channels to communicate with its customers, offer personalized recommendations, and provide updates on new content releases.
    • Pricing Strategy: Netflix offers multiple subscription plans at different price points to appeal to a broad range of users. The company also offers a free trial period to new users to encourage them to sign up.
    • Partnerships and Co-Branding: Netflix has partnered with other brands such as Samsung, Apple, and LG to integrate its app into their devices. The company has also collaborated with other brands such as Coca-Cola and Uber to promote its content and services.

    Overall, Netflix’s marketing strategies focus on creating and curating high-quality content, offering personalized recommendations, engaging with customers, and leveraging partnerships and data analytics to attract and retain subscribers.

    If you work in the service sector, we hope these insights may be useful to you as you develop a marketing plan for your company.

    FAQs

    How much does Netflix cost?

    You can watch Netflix on your favorite device – smartphone, tablet, smart TV, laptop, or streaming device – with a fixed monthly fee starting from $12.98 up to $21.98.

    What type of content does Netflix offer to its subscribers?

    Netflix offers diverse content to subscribers, ranging from TV series, movies, and documentaries to stand-up comedy, kids’ shows, and international productions, including original content such as award-winning series like Stranger Things and The Crown.

    How does Netflix use data analytics to provide personalized recommendations to its viewers?

    Netflix uses data analytics to provide personalized recommendations to its viewers through its recommendation algorithm. The algorithm analyzes a user’s viewing history, ratings, search queries, and other data points to identify patterns and make predictions about the content the user may be interested in.

  • Biggest Media Companies in the United States

    Media companies are thriving, especially digital media companies these days. Various advertisements are used to generate revenue by these companies: programmatic advertising, sponsorships, subscriptions, native promotions, and more. Furthermore, a lot of digital media companies are out there growing. Thanks to the increasing number of people using the internet and with the need to keep up with everything, the speed at which the internet works these days is increasing. 5G networks are rolling in offering more and better services.

    Advertising, broadcasting and networking, news, print and publication, digital, recording, motion pictures, events, and more, all of these specifications fall under the umbrella of two words: the media industry, with each having its unique way of working. But in today’s world, with the rapid development of new technology and the internet, the media industry has lived through much change itself. Some companies are revolutionizing how we look at and define media today.

    Every company is a media company – David Ogilvy

    People will continue to want to stay informed and entertained. Look at the top  Media companies that originated in the U.S.

    Microsoft
    Meta (Facebook)
    American Telephone and Telegraph (AT&T)
    Walt Disney Company
    Netflix
    Alphabet Inc.
    Comcast Corporation
    Charter Communications

    Microsoft

    Founders Bill Gates and Paul Allen
    Founded in 1975
    Headquarters Redmond, Washington, United States
    Revenue $198.27 Bn (2022)
    CEO Satya Nadella

    Biggest Media Company | Microsoft
    Biggest Media Company | Microsoft

    History has witnessed a thirteen-year-old writing his first program on a teletype computer, a tic-tac-toe program in basic computer language purchased for the school by the mother’s club. This company right here does not need any introduction, nor does the co-founder of Microsoft, and philanthropist famous for creating history.

    Bill Gates has a history of excelling in his school, getting exemplary grades and scoring 1590 out of 1600 on a Scholastic Aptitude Test. Gates and Paul Allen later bonded in school over their love of computers, and the rest of the story is known to the world. Bill has worked with Steve Jobs and they did get along well. It is one of the lesser-known facts, but Microsoft rescued Apple in the year 1997 from running into bankruptcy.

    The organization is believed to be responsible for the emergence of the term “tablet”. It has been experimenting, leading to prototypes for its product designs. Microsoft has gained over 10,000 patents, applying for 3000 more per year. Also well known for its computers and gaming consoles.

    Recently there were alleged reports that Microsoft did try to buy Discord and Pinterest this year, and it shows the prominent role of the internet in the area of digital media. Here is a list of companies, right from social media platforms to interactive media companies that fall under the umbrella of Microsoft Corporation.

    • LinkedIn Corp.
    • Skype
    • GitHub
    • Mojang
    • aQuantive
    • ZeniMax Media Inc         ‌‌

    Meta (Facebook)

    Founder Mark Elliot Zuckerberg
    Founded in 2004
    Headquarters 1 Hacker Way, Menlo Park, California
    Revenue $116.6 Bn (2022)
    CEO Mark Elliot Zuckerberg

    Biggest Media Company | Meta
    Biggest Media Company | Meta

    The most popular social networking app has rebranded itself as Meta. The most expensive acquisition that Facebook has ever made is that of WhatsApp. Facebook bought it for 19 million in the year 2014. Evolving the way we connect recently, Facebook has also rebranded itself as Meta. Metaverse is further changing how other platforms work as well with virtual and augmented reality.

    Facebook has acquired over 90 companies. The count is based on names that the company has disclosed. However, there may be more acquisitions that have not yet been announced.

    Some well-known companies acquired by Meta (Facebook) are as follows:

    • Instagram
    • Oculus VR
    • Onavo
    • Beluga
    • WhatsApp

    Media has taken on a whole new aspect with the introduction of the metaverse. This features virtual and augmented reality and the technologies associated with it that could boom in the coming years.            ‌‌             ‌‌

    American Telephone and Telegraph (AT&T)

    Founders Alexander Graham Bell and Gardiner Greene Hubbard
    Founded in 1983
    Headquarters Dallas, Texas, U.S.
    Revenue $120.74 Bn (2022)
    CEO John T. Stankey

    Biggest Media Company | AT&T
    Biggest Media Company | AT&T 

    It ranks as the number one and largest communication company in the world by revenue and has over 100+ million U.S. mobile subscribers, according to the report for 2020. It has over 200 million subscribers worldwide. AT&T provides branded telephones, cabling systems, and consumer electronics.

    Representing quality in global communications, connecting people with 5G, internet & fiber, technology & innovation, and entertainment with Warner Media and its streaming platform HBO Max. This platform stands out as a strong brand. It is also the first company to offer a 5G network in the USA.

    Selling out premium content, which is a plus point to establish deeper relationships with its consumers, with storytelling, in turn, converting them into loyal customers.

    Their channel, CNN, reaches over 200 billion people. A deal between Warner Media and Discovery has also been struck to combine content and compete with Netflix and Disney.

    AT&T has 98 companies under its umbrella and some of them include:

    • HBO and Cinemax
    • Turner Entertainment Networks
    • Adult Swim and Cartoon Network
    • CNN News Group
    • DC Entertainment and Films

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    Walt Disney Company

    Founder Walt Disney and Walt O. Disney
    Founded in 1983
    Headquarters Burbank, California
    Revenue $82.7 Bn (2022)
    CEO Bob Chapek

    Biggest Media Company | Walt Disney
    Biggest Media Company | Walt Disney

    Providing entertainment to its audience, having a powerful vision and acquisition has got the Walt Disney Company where it is today. Disney also defines the world of animation. Back in 2019, it officially acquired 21st Century Fox. Now the media giant holds under these three categories various companies:

    Disney media and entertainment distribution

    Disney+, ESPN+, Hulu, Hotstar, Disney Music group

    Disney Studios

    Studios include Walt Disney Studios; Walt Disney and Pixar Animation Studios, and Pixar Animation Studios. Marvel Studios. Lucasfilm, Disney theatrical group, 20th-century studios. Searchlight Pictures.

    General entertainment

    20th television studios, ABC entertainment; the ABC-owned television stations group, ABC News, ABC signature, Disney-branded television, freeform, FX, Hulu originals; National Geographic. The Walt Disney Company’s cable channels, ESPN+, and ABC.

    The amount of control over these companies by Disney depends upon the percentage of ownership it has over them.

    Most of Disney’s revenue is generated from:

    • Media networks
    • Park and resorts
    • Studio entertainment
    • Consumer products and interactive media

    Netflix

    Founders Reed Hastings, and Marc Randolph
    Founded in 1997
    Headquarters Los Gatos, California, U.S.
    Revenue $31.6 Bn (2022)
    CEO Ted Sarandos

    Biggest Media Company | Netflix
    Biggest Media Company | Netflix

    You can’t think of media without adding Netflix next to it, such as the established position it has acquired in the minds of everyone. Netflix changed the game when they introduced a subscription model in the year and no doubt is the competition of all the new platforms coming in wanting to not miss out on the streaming revolution that is making rounds.

    Starting as a DVD-by-mail business in the year 1997, it changed its business model over time. The revenue comes in from the subscription fees from the members; it had 192.95 million paid subscribers, according to reports from the second quarter of the year 2020. Another study revealed that most of its users are from the U.S. and Canada in 2021. As of now, it has over 231 million paid subscribers.

    Lastly, keep in mind that Netflix is exploring new areas and aiming to expand its empire in gaming. Releasing five games back in November, which are available on iOS and Google Play Store, Netflix is slowly taking the company to another level as it plans to release three new mobile games globally.             ‌‌             ‌

    Alphabet Inc.

    Founders Larry Page, and Sergey Brin
    Founded in 2015
    Headquarters Mount View, California
    Revenue $76 Bn (2022)
    CEO Sundar Pichai

    Biggest Media Company | Alphabet
    Biggest Media Company | Alphabet

    Alphabet Inc. the parent company of Google, was established in the year 2015, and co-founded along with Sergey Brin, who also serves as the Director, to make the core business of Google cleaner and more accurate. Alphabet Inc. identifies as a company that falls under the computer service industry. The holding company includes segments of Google: Google services, Google Cloud and Google Workspace.

    Google is involved in businesses like:

    • Engagement in advertisement
    • Sales of digital content
    • Applications
    • Cloud offerings

    Not to forget its hardware products, which are:

    • The pixel phones
    • Chromecast with Google TV
    • Google Nest Hub smart display‌‌

    Apart from this, Alphabet Inc. is also engaged in other segments. The most recent buzzing news is about the deal Verizon Communications signed with Alphabet Inc’s Google Cloud to use its 5G network, its computing powers, and more.

    Comcast Corporation

    Founder Ralph J. Roberts
    Founded in 1963
    Headquarters Philadelphia, Pennsylvania
    Revenue $121.43 Bn (2022)
    CEO Brian L. Roberts

    Biggest Media Company | Comcast
    Biggest Media Company | Comcast

    Comcast Corporation, the biggest cable TV and broadband provider company, has been a part of many firsts in history. David Sarnoff founded the first permanent radio network, NBC, in the year 1926, which brought the Olympics to the world with NBC covering it.

    In 2010, they opened the doors to the Wizarding World of Harry Potter. In 2018, Xfinity became the largest Gigabit Internet Provider in the United States in more than 58 million homes, which was faster than any other internet service provider at that time. 2020 had been the best year for Comcast for its broadband. And apart from this, some recent acquisitions in the past few years by Comcast include:

    • Sky
    • DreamWorks Animation
    • NBCUniversal

    They have also launched Peacock, Xfinity Flex, xFi, and more. The media and technology company also has won broadcasting rights for the Olympic games 2032 back in 2014.

    Charter Communications

    Founders Barry Babcock, Jerald Kent, and Howard Wood
    Founded in 1993
    Headquarters Stamford, Connecticut
    Revenue $54 Bn (2022)
    CEO Tom Rutledge

    Biggest Media Company | Charter Communications
    Biggest Media Company | Charter Communications

    Charter, which is a broadband and cable operating company, has served over 32 million customers with the help of its brand Spectrum. The services provided by Charter Communications Inc. are further divided into:

    • Spectrum networks
    • Spectrum Original
    • Spectrum Reach
    • Spectrum Business
    • Spectrum Enterprise

    With more than 30 Spectrum Networks Delivering Local News and Sports. It aims to be the broadband provider of the future that is fast and secure.

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    Conclusion

    The United States media industry is dominated by a handful of large conglomerates, including The Walt Disney Company, Comcast, AT&T, ViacomCBS, and Discovery, among others. These companies control various media outlets such as television networks, movie studios, streaming services, and publishing houses, enabling them to reach millions of people every day.

    While this concentration of power has led to concerns about media diversity and competition, these companies have also played a significant role in shaping American culture and influencing global media trends. As the media landscape continues to evolve and new technologies emerge, these companies will likely remain major players in the industry for years to come.

    FAQs

    What are the 5 biggest media companies?

    Some of the biggest media companies are:

    • Comcast
    • AT&T
    • Walt Disney
    • Netflix
    • Alphabet

    Which is the biggest media company in the US?

    Comcast is the biggest media company in the U.S.

    Who Owns the Media in the U.S.?

    U.S. media outlets are owned by 15 billionaires and six corporations.

  • How Netflix Corrected Its Mistake Called Qwikster?

    Netflix Inc. was founded by Reed Hastings and Marc Randolph in 1997 in Scotts Valley, California. It is an American subscription streaming service and production company that offers films and television series library through distribution deals. Its own productions are known as Netflix Originals.

    The OTT platform is available worldwide apart from Mainland China, Syria, North Korea, and Russia. Netflix is a member of the Motion Picture Association (MPA) and has played a prominent role in independent film distribution. By September 2022, Netflix’s subscriber base was 222 million strong globally. This included 73.3 million in the United States and Canada, 73.0 million in Europe, the Middle East and Africa, 39.6 million in Latin America, and 34.8 million in the Asia-Pacific region.

    History and Growth of Netflix
    What Was Qwikster? – The Error and the Correction
    The Aftermath of the ‘Qwikster’ Debacle

    Hidden Story of Netflix: Why Netflix is Losing Subscribers? 

    History and Growth of Netflix

    Netflix's Annual Revenue Growth from 2011 to 2021
    Netflix’s Annual Revenue Growth from 2011 to 2021

    Initially, Netflix.com was launched as a DVD rental and sales website in 1998 with 925 titles. During the dot-com bubble of September 2000, amidst losses, Netflix offered to sell to Blockbuster LLC for USD 50 million which was rejected by Blockbuster LLC. The year 2001 saw Netflix experience fast growth but the continued effects of the dot-com bubble burst and the terrorist attack of September 2001 resulted in Netflix holding off its plans for an IPO (Initial Public Offering). The company went public on May 29, 2002, and sold 5.5 million shares. It posted its first profit in 2003 of USD 6.5 million on USD 272 million in revenue. A year later, in 2004, the profit had increased to USD 49 million on USD 500 million in revenue.

    Between 2007 and 2012, Netflix transitioned to streaming services starting with recruiting Anthony Wood in April 2007 to build a ‘Netflix Player’ that would allow streaming content to be played directly on a television set. In November 2008, Netflix began offering subscriber rentals on Blu-ray and by 2009, Netflix streams overtook DVD shipments. From here on, Netflix began to grow exponentially by signing deals with Warner Brothers, Universal Pictures, and 20th Century Fox to delay new release rentals 28 days prior to retail in 2008, signing a deal to stream movies of Relativity Media in July 2010 and signing a five-year deal worth approximately USD 1 billion to stream movies from Paramount, Lionsgate and Metro-Goldwyn-Mayer. It was in September 2010 that Netflix first made its foray into the international market by offering streaming service in Canada.

    In January 2011, Netflix introduced a Netflix button for certain remote controls for easy access on compatible devices. By January 2012, Netflix began its Europe expansion launching in the United Kingdom and Ireland. It launched in Denmark, Norway, Finland and Sweden in October of the same year. September 2013 saw Netflix launching in the Netherlands and from there on to another 40 countries. A year later, by September 2014, Austria, Belgium, France, Germany, Luxembourg, and Switzerland joined the ever-growing Netflix family. Australia and New Zealand were the next to join in March 2015.

    At the January 2016 Consumer’s Electronics Show, Netflix announced its ambitious international expansion plans into 130 additional countries and followed it up by becoming available worldwide except in China, Syria, North Korea, Kosovo and Crimea. Between 2017 and 2020, Netflix branched out and expanded into international productions. By 2021, it began its expansion journey into gaming, Squid Game as well.

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    What Was Qwikster? – The Error and the Correction

    Qwikster by Netflix
    Qwikster by Netflix

    Netflix’s subscription plan that offered access to DVD rentals and unlimited on-demand video streaming for USD 10 was extremely popular and well-received among its customer base. It was in the spring of 2011 that Netflix’s Chief Executive Officer, Reed Hastings, first outlined his plan to separate its DVD operations from its streaming service. Irrespective of the objections from Jonathan Friedland, the then-new vice-president of global corporate communications, Hastings held the firm belief that Netflix was a great bargain and any anger from subscribers would fade quickly. Announcements were made to the subscribers that DVDs and streaming would be separated and each would cost USD 7.99 per month or USD 15.98 for both. This was a 60% hike and the changes were slated to be made from September of that year. Netflix renamed their plan to offer DVD by mail service ‘Qwikster’, and planned to run it as a separate business.

    This move by Netflix did not go as planned. The increase in price as well as the separation of its DVD service caused Netflix’s stock price to drop by 77% and the video streaming service quickly lost 8,00,000 subscribers – all in a space of just four months. The customers had spoken and expressed their outrage quite vehemently. ‘Qwikster’ was a bad idea from the get-go. Three weeks after its announcement, ‘Qwikster’ was shelved, although the price hike remained.

    A customer of Netflix, Willie Williams, reacted to the announcement by posting his comment on Facebook. “Individually your DVD and steaming services do not offer enough to justify their expense. As a bundled service they supplement each other and provide the value that made Netflix wonderful. DVDs allowed you to view newer releases in a fairly timely manner. Streaming allowed for viewing of the older catalogue of movies that come up when you think of it but might not be worth waiting for to arrive in the mail….

    By separating these services I fear you are weakening Netflix as a service and subsequently the brand. Together these services made Netflix a success, separated you lack the availability and pricing of your competitors.” 1877 people agreed with his summation.  

    The Aftermath of the ‘Qwikster’ Debacle

    Reed Hastings had earned the label of being a ‘visionary’ and someone who knew about disrupting businesses. His brainchild ‘Netflix’ had driven out the well-established video rental businesses with the simple premise of an easy-to-use website that delivered DVDs to the customers’ doorstep and entailed no late fees. However, his misstep with ‘Qwikster’ was a massive error that almost caused Netflix its existence. Hastings’ idea, however, was, in fact, sensible. The DVD business was a dying breed, having outlived its existence. He wanted to cause disruption by slowly fading out the DVD business and focus solely on streaming services.

    It was an aggressive move, that was far-sighted and did not consider consumer behaviour. It caused Netflix to stumble precariously as it lost a year while trying to recoup from the loss of subscribers and business. However, Netflix streaming services continued its slow and steady upward trajectory with an aggressive price of USD 7.99 per month or USD 15.98 for DVD rentals and streaming service, by 2012 outperforming Apple, Google, HBO, or Amazon in terms of the volume of content available for the said price.

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    Conclusion

    Netflix emerged from the ‘Qwikster’ blood bath scathed but alive. It was a hard lesson that was learnt brutally and quickly. In the following years, Netflix concentrated on expanding its streaming services and producing and airing original content. Although unsteady for a while, it eventually outgrew its ‘Qwikster’ debacle to emerge as the market leader that it currently is.

    FAQs

    What was Netflix Qwikster?

    In 2011, Netflix announced that DVDs and streaming would be separated and each would cost USD 7.99 per month or USD 15.98 for both. Netflix renamed their plan to offer DVD by mail service ‘Qwikster’, and planned to run it as a separate business.

    When was Qwikster launched?

    Netflix DVD by mail, Qwikster was launched in September 2011.

    Did Netflix face any losses due to Qwikster?

    The increase in price as well as the separation of its DVD service (Qwikster) caused Netflix’s stock price to drop by 77% and the video streaming service quickly lost 8,00,000 subscribers – all in a space of just four months.

  • How Do Short Video Platforms Make Money? | Business Model of Short Video Platforms

    The arrival of TikTok has increased the craze for making short-form videos worldwide. Short video platforms are on the trend. TikTok was the most used Short Video Platform in India which had been downloaded over 611 million times. Ever since it got banned in India on June 29, 2020, over national security issues, after a fallout between both the country. To fill up the gap TikTok left, there has been an onslaught of new short-video platforms. Instagram launched “Reels” immediately after TikTok got eliminated from India.

    There are various short-video platforms that have entered the market like Josh, Moj, MX Taka Tak and many more and they are growing exponentially. The reason is that the mobile data price has dropped since the arrival of Jio. And also, android phones with good cameras are available for a reasonable price which led to an increase in the consumption and creation of short video content in India.

    Age Group of short video platform users
    Age Group of short video platform users

    Now, anyone with a good internet connection and a good camera phone can create and upload short video content. The short video platforms have a wide range of business models and the way of making money differs from one company to another. Moreover, these platforms provide free services to their user which require experiments with the business model. In this article, we will talk about how short video platforms make money. So, let’s get started.

    How Short-Video Platforms make money?

    Promotion Of Brand
    Sponsorship
    Affiliate Marketing
    Collaboration
    Transactional Video on Demand (TVOD)
    Subscription Video on Demand (SVOD)
    Ad-supported Video on Demand (AVOD)
    Hybrid Model

    Promotion Of Brand

    85% of Marketers consider Short-Video Platforms as the most-effective medium for Brand Promotion
    85% of Marketers consider Short-Video Platforms as the most-effective medium for Brand Promotion

    Short Videos are enjoyed by people scrolling on social media. Be it Reels on Instagram or TikTok videos, if it’s entertaining it’s bound to catch your attention. There are many brands that introduce challenges in this video platform and ask people to participate. The brand gives money to the platform to introduce the challenge, this way the promotion is done, and people get to interact with the brand while doing the challenge, and thus their work is done.

    How to use video content for marketing?

    Sponsorship

    Sponsorship is another way of earning money for the Short Video platforms. Many companies willingly sponsor short video apps to reach the masses. As these videos are watched by people in bulk, sponsoring them is beneficial for the company to be known by a large number of people who can be their potential customers. It is a win-win situation for both the platform and the sponsor as the platform gets to earn money through it.

    Affiliate Marketing

    Brands give money to the platform for Affiliate marketing. Here, the platform has to present a video regarding the product of that brand where all information about it has been provided in the video. As people are now attracted to videos more, affiliate marketing helps brands to increase their sales. Thus, nowadays some companies are taking the support of short video platforms and are using them for affiliate marketing.

    Collaboration

    Whenever there is a new film or a music video is going to be released, the stars or the singers collaborated with the video platforms. This way they get to promote their films or music videos whatever it is and can be presented to many people. Collaboration brings money to the short video platforms and thus it is one way to earn.

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    Transactional Video on Demand (TVOD)

    In this type of business model, a customer normally pays a one-time fee or rents it to watch videos or live events. It is more commonly known as pay-per-view. This helps you to choose the entertainment videos you want to watch; you can just pay for the content you require and that increases the popularity of this model. It is considered cost-effective as you can choose what type of entertainment you want to watch rather than subscribing to everything in bulk.

    TVOD helps to concentrate and offer content to a specific market. You won’t be getting unwanted or unrelated video suggestions and would receive video suggestions according to your likes.

    You can find video platforms like YouTube or Instagram using this method to suggest videos. The platforms would keep a track of your activities and give you suggestions on content according to your choice.

    That’s the reason most of the time you would be able to find the content according to your choice. The only difference is that you can view videos and content for free on these video platforms.

    Subscription Video on Demand (SVOD)

    In this subscription-based model, a customer will have to pay an amount monthly, quarterly, or yearly. Through the subscription model, you will be able to view an unlimited amount of content on their platform along with the recently released content.

    There will be different subscription models. The services you receive would be better as you pick the most premium version of the models.

    The main difference between different subscription models would be that there would be a difference in the prices. Also, you would be getting added services and certain advantages. Most of the time, the in-demand videos would be available for premium subscribers.

    This Revenue model is mostly followed by major OTT platforms such as Netflix, YouTube and many more. The subscription model of YouTube is known as YouTube Premium. The main advantage here is that you can choose what you want to watch on these platforms.

    Ad-supported Video on Demand (AVOD)

    In this model, a customer can view the content for free. It is a platform where you can view the content for free but would receive ads in between your content. The platforms get their major revenue from the ads.

    The platform would charge different rates from the advertisers according to what time they would want to play their ad. For example, an ad played at the beginning of the video would cost more than the ad played at the end of the video. The main example of this type of model is YouTube.

    On certain platforms like YouTube, even the content creators would receive a specific amount for the ads being played in between their videos. This would encourage the content creators to make and promote more of their content which will indirectly improve the financial position of the platform as well as the content creators.

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    Hybrid Model

    This is the type of business model normally adopted by companies that want to increase their reach. It is a combination of all the above methods. The platform would want a customer to view it for free at the beginning where they would play some video ads and later convert the customers into the subscription model or transactional video model.

    The company would generate revenue from the beginning stage and it would attract a lot of customers as well. This model would provide the customers with a lot of options to choose from. You would be able to choose the model you prefer according to your budget or your likes.

    Conclusion

    Number of Active Users of Short Video Platforms in India
    Number of Active Users of Short Video Platforms in India

    The demand for short video platforms would keep on increasing in the coming years. The number of active users on Short-video platforms is expected to reach over 650 million by 2025. We would be able to see a lot of content creators and a lot of viral videos being uploaded. With the ban of TikTok in India, there are a lot of new apps coming up along with new features such as Reels, introduced by Instagram to promote short video content.

    YouTube has become a platform where people create content as a full-time profession. Short video platforms are going to flourish in the coming future as the entertainment industry is gaining popularity.

    FAQs

    What is the Business Model of TikTok?

    TikTok primarily gains its revenue through advertising.

    Which countries have banned TikTok?

    TikTok is banned in India and Pakistan only. Though Bangladesh, the United States and Indonesia have attempted a ban on TikTok but later lifted it.

    Why is TikTok banned in India?

    The Indian government in a statement stated that the decision to ban the app was “to protect the data and privacy of its 1.38 billion citizens”.

    Which is the best platform for short videos?

    The best platform for short videos based on its features are as follows:-

    • Instagram
    • TikTok
    • Moj
    • Josh
    • Likee
    • Taka Tak
    • Snapchat
    • YouTube Shorts
    • Dubsmash

    Which short video app is best to earn money?

    The best short video app to earn money are as follows:-

    • Kwai
    • Instagram
    • Likee
    • TikTok
    • Moj
    • Josh
    • Taka Tak
    • Vigo Video

    Which app is best for short video editing?

    The best video editing apps are:-

    • InShot
    • KineMaster
    • Movavi Video Editor Plus
    • FilmoraGo
    • ActionDirector
    • Adobe Premiere Rush
    • Funimate.

  • List of Top 10 Highest-Paid CEOs of the World – 2022

    While it’s unsurprising that Covid-19 remains a source of concern for CEOs, other concerns include supply chain disruptions, changing consumer behaviour, labour and employee shortages due to stress and poor mental health, and more To tackle the pandemic’s difficulties, corporate leaders all throughout the World had to act quickly and decisively. Some tried their hardest to keep their businesses afloat, but due to a lack of personnel, resources, demand, or sheer luck, they were unable to manage the difficulties and went to the bottom, while others employed their talents and manpower to perfection and kept themselves and their businesses afloat. Some CEOs could not only overcome obstacles and remain steady in their positions but also advance to the top and flourish. Here are the Top 10 Highest-Paid CEOs in the World right now. These rankings are based on the statistics given by the Fortune 500.

    Highest-Paid CEOs in the World

    1. Elon Musk, CEO of Tesla
    2. Tim Cook, CEO of Apple
    3. Jensen Huang, CEO of NVIDIA
    4. Reed Hastings, CEO of Netflix
    5. Leonard Schleifer, CEO of Regeneron Pharmaceuticals
    6. Marc Benioff, CEO of Salesforce
    7. Satya Nadella, CEO of Microsoft
    8. Robert A. Kotick, CEO of Activision Blizzard
    9. Hock E. Tan, CEO of Broadcom
    10. Safra A. Catz, CEO of Oracle

    Elon Musk, CEO of Tesla

    Earned Compensation: $23.5 Billion

    Elon Musk, CEO of Tesla and SpaceX
    Elon Musk, CEO of Tesla and SpaceX

    Elon Musk is the founder and CEO of SpaceX and Tesla, the most valuable automaker in the World.

    Despite not being paid by Tesla, Musk has been the highest-paid CEO in the US for three years. Instead, when the business achieves specific market capitalization and growth benchmarks, he is awarded stock options. With the help of these options, Musk can buy Tesla stock for a remarkable $70 per share, which at the beginning of January 2022 was trading for close to $1,200 per share. In the first quarter of 2022, Tesla generated $18.76 billion in revenue.

    By exercising some Tesla stock options granted in 2018, Musk received income in 2022 totalling roughly $23.5 billion.

    As of May 25, Elon Musk’s net worth was estimated to be $193 billion. This indicates that Musk has lost 77.6 billion dollars in fortune from the beginning of the year. By net worth, Musk remains the richest person in the World. He also ranked #2 on the Forbes 400 list of 2022.

    Tim Cook, CEO of Apple

    Earned Compensation: $770.5 Million

    Tim Cook, CEO of Apple
    Tim Cook, CEO of Apple

    Cook became Apple’s CEO in 2011 following the passing of Steve Jobs. He has consistently appeared on lists of the highest-paid CEOs for a number of years.

    Apple’s market value has climbed by $2.2 trillion under Cook, and in 2021, the business made $95 billion in profits. The company encountered difficulties due to the global chip scarcity but was successful in starting internal equipment manufacturing.

    Apple outperformed every other American corporation on that front, finishing the year with an enormous $95 billion n earnings. In the first quarter of 2022, Apple generated $97.2 billion in revenue.

    The estimated current net worth of Tim Cook is $2 billion. As part of a 10-year issuance of shares worth $1.7 billion, he received an astounding $770.5 million in 2021 alone. Most people would find Cook’s $3 million salary acceptable, but it is nothing compared to his $10.7 million bonus and $250 million in stock awards.

    In the Forbes list of billionaires of 2022, Cook ranked #1513.

    Jensen Huang, CEO of NVIDIA

    Earned Compensation: $561 Million

    Jensen Huang, CEO of NVIDIA
    Jensen Huang, CEO of NVIDIA

    NVIDIA Corp., founded in 1993, is a tech corporation best known for its graphics chips, artificial intelligence technology, and Shield gaming consoles. Jensen Huang is the company’s co-founder, current CEO, Director, and President.

    Due to the company’s share price increasing by about 60 times over the previous ten years, he realized $561 million in 2022 from the expiration options given in 2011 and 2012. From NVIDIA in the fiscal year ended in 2022, Huang got a total compensation of $23.7 million, out of which $900k was his salary, $18 million was awarded as stock, $4 million was his bonus, and $81k came from other types of compensation.

    Nvidia, which went public in 1999, is 3.6% owned by Huang. NVIDIA’s revenue increased by 61% to a record $12.46 billion in 2021, and it was $7.10 billion in the first quarter of 2022.

    With a $21.3 billion net worth, he came in at #34 on the Forbes 400 list of billionaires for 2022.

    Reed Hastings, CEO of Netflix

    Earned Compensation: $453.5 Million

    Reed Hastings, CEO of Netflix
    Reed Hastings, CEO of Netflix

    The notorious streaming powerhouse Netflix was established in 1997, and Reed Hastings is the company’s co-founder, CEO, and chairman.

    In 2007, under his direction, Netflix transformed from a DVD postal delivery service to a leading online streaming service.

    In 2021, Netflix generated $24.9 billion in revenue, a 23.8% year-over-year rise, and $5.1 billion in operating profit, an 85% year-over-year increase.

    However, as the World reopened after the pandemic, the corporation recently trimmed expenditures due to losing subscribers. Streaming services are another source of rising rivalry for Netflix.

    Hastings’ total remuneration for the 2021 fiscal year was $40 million. Of this amount, $442k came from other forms of income, $39 million came from stock options, and $650k came from salary.

    Reed Hastings’ net worth was $2.9 billion as of 2022. He also ranked #801 on the Forbes list of billionaires in 2022 and #188 on Forbes 400 (2021).

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    Leonard Schleifer, CEO of Regeneron Pharmaceuticals

    Earned Compensation: $452.9 Million

    Leonard Schleifer, CEO of Regeneron Pharmaceuticals
    Leonard Schleifer, CEO of Regeneron Pharmaceuticals

    Leonard Schleifer, the current CEO of the company, founded the biotech company Regeneron Pharmaceuticals in 1988, which deals in the research, creation, testing, manufacturing, and distribution of medications to treat cancer, asthma, and chronic pain.

    Due to the company’s REGEN-COV antibody medication for the prevention and treatment of COVID-19, revenue increased 89.1% in 2021 to reach $16.07 billion.

    The business generated $2.97 billion in revenue in the first quarter of 2022.

    Schleifer received a total payout of $6 million. Of this total, $672 thousand came from other forms of income, $4 million came from bonuses, and $1 million came from salaries. Schleifer’s current net worth is $1.1 billion. He also ranked #2324 on the Forbes list of billionaires in 2022 and #339 on Forbes 400 (2020).

    Marc Benioff, CEO of Salesforce

    Earned Compensation: $439.4 Million

    Marc Benioff, CEO of Salesforce
    Marc Benioff, CEO of Salesforce

    In 1999, Benioff established Salesforce, a company that creates cloud-based enterprise software for customer relationship management with the tagline “The End of Software.” Sales force automation, community management, a salesforce platform, solutions tailored to particular industries, digital commerce, customer service and support, collaboration, and marketing automation are some of its solutions. Additionally, the company offers consulting, counselling, support, and training services.

    In 2021, revenue increased by 24.7%, reaching a total of $21.25 billion. Revenue increased by 24% year over year to $7.41 billion in the first quarter of 2022.

    His base pay of $1,440,000, cash bonuses of $2,816,640, and benefits of $1,291,541 make up his $39,907,534 in yearly income.

    Additionally, he was listed #74 on the Forbes 400 in 2021 and #275 on the Forbes list of billionaires in 2022.

    Satya Nadella, CEO of Microsoft

    Earned Compensation: $309.4 million

    Satya Nadella, CEO of Microsoft
    Satya Nadella, CEO of Microsoft

    In 2014, billionaire Satya Nadella succeeded billionaire Steve Ballmer as CEO of Microsoft. Nadella formerly held the position of Microsoft EVP for the cloud and enterprise group. Nadella’s peers probably think he merits a large salary. In place of the company’s faltering mobile strategy, he has steered it toward alternative markets like cloud computing and augmented reality.

    A chip shortage that affected Xbox game systems was another issue the corporation had to deal with. Microsoft reported $168 billion in total revenue in 2021, an increase of 17.5%, and $7.8 billion in the first quarter of 2022.

    The total remuneration received by Satya Nadella was $49.8 million. A salary of $2.5 million was paid out of this amount, along with bonuses of $14.2 million, stock awards of $33 million, and other forms of compensation of $109 thousand.

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    Robert A. Kotick, CEO of Activision Blizzard

    Earned Compensation: $296.7 Million

    In 1991, Kotick was appointed Activision’s CEO. The gaming behemoth creates and publishes interactive entertainment, and its most well-known titles include Call of Duty and World of Warcraft.

    Kotick made $296.7 million from the value of vested restricted shares last year. In spite of Kotick’s personal handling of assault claims at the game producer and several lawsuits alleging harassment, and sexism, Microsoft decided to purchase Activision in January for $68.7 billion, making it the company’s largest acquisition to date.

    Kotick received total compensation of $826.5k, of which $108.5k came from different sources of compensation, and $718k was salary.

    Hock E. Tan, CEO of Broadcom

    Earned Compensation: $288 Million

    Hock E. Tan, CEO of Broadcom
    Hock E. Tan, CEO of Broadcom

    Tan, raised in Malaysia, received a scholarship to attend MIT before starting his career. Since Avago purchased the semiconductor business in 2015 for $37 billion, he has served as CEO of Broadcom.

    A leading provider of infrastructure software and semiconductors, Broadcom is a multinational technology business. It uses infrastructure software, semiconductor products, and IP licensing to operate.

    In 2021, the company’s revenue increased 14.9% to $27.4 billion.

    Tan received total pay of $60 million, including a salary of $1.2 million, a bonus of $5.4 million, $54 million in stock, and $46,000 in other forms of compensation.

    Safra A. Catz, CEO of Oracle

    Earned Compensation: $239.5 Million

    Safra A. Catz, CEO of Oracle
    Safra A. Catz, CEO of Oracle

    Safra A. Catz has travelled a long but rewarding path. Prior to joining Oracle as a Senior Vice President in 1999, she worked as a banker. She then joined Mark Hurd as Co-CEO of Oracle in 2014. Hurd retired in 2019, citing health concerns, and Catz took over as CEO.

    Oracle has seen slow revenue growth in recent years despite offering products and services that address many facets of corporate information technology settings. It is best recognized for its database software. As of May 2022, the regulatory approval process for Oracle’s $28 billion acquisition of Cerner, a provider of electronic health records, was still ongoing in the United States and Europe.

    Catz received a total payout of $10 million. $950 thousand of this total was earned as a salary, $9 million as a bonus, and $96 thousand from other forms of compensation.

    Catz has a net worth of $1.4 billion. Additionally, she was listed #19 on the Forbes list of America’s Self-Made Women in 2022 and #1922 on the Forbes list of billionaires in 2022.

    Conclusion

    While these CEOs are on the top, others are climbing this stairwell, like Eric Yuan, Ann-Marie Campbell, Amrita Ahuja, Satya Nadella, Lisa Barton, and many more. Some of them are doing it at a very fast pace, while others are playing it steady. It won’t be long before these names are among the highest-paid CEOs in the World.

    FAQs

    Who are the highest-paid CEOs in the world?

    Top 10 Highest-Paid CEOs in the world are:

    • Elon Musk, CEO of Tesla
    • Tim Cook, CEO of Apple
    • Jensen Huang, CEO of NVIDIA
    • Reed Hastings, CEO of Netflix
    • Leonard Schleifer, CEO of Regeneron Pharmaceuticals
    • Marc Benioff, CEO of Salesforce
    • Satya Nadella, CEO of Microsoft
    • Robert A. Kotick, CEO of Activision Blizzard
    • Hock E. Tan, CEO of Broadcom
    • Safra A. Catz, CEO of Oracle

    Who is the highest-paid CEO in the world?

    Elon Musk is the highest-paid CEO in the world with an annual compensation of $23.5 billion.

    Who is the highest-paid female CEO?

    Safra A. Catz, CEO of Oracle is the highest-paid female CEO. She got an annual compensation of $239.5 million in 2021.

    What is the revenue of Tesla?

    Tesla brought a revenue of $53.8 billion in 2021.

    What is Elon Musk’s salary at Tesla?

    Elon Musk got annual compensation of $23.5 billion from Tesla in 2021.

    Who is the richest CEO in the world?

    Elon Musk is the richest CEO in the world with a net worth of $227 billion.

  • Traditional Business V/S Digital Business and Types of Business Models Used

    This post discusses the differences between traditional businesses and digital businesses. It also talks about the types of business models that come under these two forms of businesses.

    Managing a business is both challenging and interesting. It’s not like your 9-5 government job where one reaches the office at or before a particular time, does some mundane tasks, and then wraps up for the day at a fixed time. With business, everything takes a different turn. Inherent risks and the constant need to pacify customer requirements float in the business owners’ minds.

    A traditional business setup has a physical presence, and it serves people locally by providing services or products through brick-and-mortar stores. In case of a digital business setup, people sitting in any corner of the world can scroll through the web and avail the company’s services and products.

    What is Traditional Business?
    Types Of Traditional Business Models
    What is Digital Business?
    Types Of Digital Business Models
    Traditional Business V/S Digital Business

    Difference between Traditional Vs Digital Business

    What is Traditional Business?

    Organizations such as restaurants, agencies, and anything resembling an office-setup fall in this category. Traditional business-oriented organizations usually sell products or services through stores.

    A traditional business serves customers in exchange for monetary compensation. It works on CAPEX and OPEX. While such organizations focus on profit generation, a few of them—non-profit organizations—work for customers without expecting profits.

    Types Of Traditional Business Models

    Various types of business models used in traditional business are:

    Manufacturer

    The manufacturer business model utilizes raw materials to create products that are then sold in the market. This type of business model involves the assembly of pre-manufactured items. The products are either directly sold to the customers in what’s known as B2C model (business to customer), or to another business unit in the form of B2B model (business to business). Automobile manufacturers are an example of B2C model, and wholesalers follow the B2B model.

    Distributor

    A company in the distributor business model buys products directly from the manufacturer. The company then sells the procured products to consumers or retailers.

    Retailer

    A company following the retailer business model purchases products from the wholesaler/distributor. It then sells the inventory to the public. Brick-and-mortar stores fall in this category.

    Franchise

    In this setup, the company buys the franchise of a very successful brand and promotes the brand’s services/products to the general public. The franchise segment is a popular way to build awareness across geographies.

    Traditional And Digital Business Model 

    What is Digital Business?

    Digital business is the modern form of business, a significant deviation from the established norm. This model leverages technology for value creation & addition, thereby giving an entirely different customer experience.

    The umbrella term includes both digital-only brands as well as traditional businesses that use modern-day innovations. Prominent examples of digital businesses are Uber, the cab-owning service which allows the user to book cabs online, Disney+Hotstar, and Netflix (video streaming service).

    Types Of Digital Business Models

    Types of the business model used in digital business are:

    Basic

    Small businesses fall in this category. With a small presence on digital platforms, such ventures rely on traditional marketing methods like direct mail and print advertising.

    Intermediate

    A level where small businesses employ tools like websites with basic functionality; these sites don’t have e-commerce or mobile rendering capabilities. Other factors like listing in online directories and third-party marketplaces play a major part here.

    Advanced

    Advanced websites with mobile app versions or e-commerce abilities are used by digital businesses in this category. The reliance on Social media engagement is quite significant. Video conferencing, SAAS apps, etc. are part of the toolkit.

    This model is the epitome of digital business. Such ventures have high social media visibility, have little or no physical presence (as in brick-and-mortar stores), and engage with customers extensively through the internet.

    Traditional Business V/S Digital Business

    Traditional Vs Digital Business
    Traditional v/s Digital Business

    There are various differences between traditional business and digital business which are listed below:

    • The traditional business model requires more capital than its digital counterpart. The former needs place, furniture, transport, staff, and other utilities. Digital businesses are cost-effective in this aspect.
    • A business unit following the digital approach is convenient for customers in terms of the flexibility offered in the variety and cost of products (consider Amazon’s extensive product catalog). In the traditional setup, rigidity is a major issue. As a result, consumers are now inclined towards shopping online.
    • The digital business model is yet to achieve perfection when it comes to real-time customer experience. For example, you can’t try a mobile phone before purchasing it from Amazon. You rely on customer reviews and the specifications listed on the website. This obstacle is overcome in the traditional business model.
    • Online businesses tend to have a larger digital market spend than their old-school counterparts. Traditional businesses diversify marketing strategies to attract customers from both local areas and online demographics. But their reach is relatively restricted to digital businesses.
    • Digital businesses work 24/7 and overcome both geographical and timing barriers. You can carry out online purchases in the middle of the night from anywhere in the world.
    • Organizations based on the traditional business model have restrictions on when and where they function. Timings are rigid and customer service isn’t flexible either. There are exceptions where few traditional business operates 24/7, but those are limited in numbers and function in select locations only.

    FAQs

    What is the difference between traditional business and digital business?

    A traditional business setup has a physical presence, and it serves people locally by providing services or products through brick-and-mortar stores. In the case of a digital business setup, people sitting in any corner of the world can scroll through the web and avail the company’s services and products.

    Why is online business better than traditional business?

    Digital businesses work 24/7 and overcome both geographical and timing barriers. You can carry out online purchases in the middle of the night from anywhere in the world. Traditional business has restrictions on when and where they function.

    What is traditional business?

    Organizations such as restaurants, agencies, and anything resembling an office-setup fall in this category. Traditional business-oriented organizations usually sell products or services through stores.

    What are traditional business models?

    Types of Traditional Business Models:

    • Manufacturer: The manufacturer business model utilizes raw materials to create products that are then sold in the market. This type of business model involves the assembly of pre-manufactured items.
    • Distributor: A company in the distributor business model buys products directly from the manufacturer.
    • Retailer: A company following the retailer business model purchases products from the wholesaler/distributor. It then sells the inventory to the public. Brick-and-mortar stores fall in this category.
    • Franchise: In this setup, the company buys the franchise of a very successful brand and promotes the brand’s services/products to the general public. The franchise segment is a popular way to build awareness across geographies.

    What is the difference between traditional and non-traditional business?

    The major difference between traditional and non-traditional business are:

    Traditional

    Standalone stores, retail spaces in malls, and any other type of place that houses a usual location for a given franchise fall under the category of traditional businesses.

    Non-Traditional

    Non-traditional businesses conduct most of their operations over the internet. They might have a few physical stores but these are generally for resolving customer issues and function as a point-of-contact.

    What are the types of ECommerce Business models?

    Four Traditional Types of Ecommerce Business Models are:

    • B2C – Business to consumer
    • B2B – Business to business
    • C2B – Consumer to business
    • C2C – Consumer to consumer

  • List of All the Companies That Suspended Operations in Russia Due to Ukraine Invasion

    A business can be spread when it will be able to entice the audience which will result in potential customers becoming actual customers.  A business grows only when its customers indulge themselves with it. Every company has some social responsibility that they need to fulfil, towards the world, nature and its people.

    The world is seeing some of the greatest humanitarian crises in the last few weeks, once again. The conflict between Russia and Ukraine has intensified when the latter declared war. Some of the most famous brands from different sectors, realising the depth of the issue started pulling out from Russia and freezing their activities there.

    All the major companies seem to condemn the invasion of Russia and the violence that its people are facing in Ukraine and they have done that by suspending their operation in the country. This is mainly done to create pressure in the Russian economy so that they can back off from this disaster called war.

    In this article, we will talk about the major firms that have ceased their operations in Russia due to the country’s invasion of Ukraine. Let’s take a look at the list of the companies leaving Russia.

    “You only have to do a few things right in your life so long as you don’t do too many things wrong.” – Warren Buffett

    List of all the major firms that suspended operations in Russia

    Apple
    Microsoft
    Dell
    Google
    YouTube
    Mastercard
    H&M Group
    Visa
    Meta
    PayPal
    Airbus
    Samsung
    Puma
    Nike
    Disney
    Netflix
    Ford Motor
    Adidas
    Adobe
    Amazon
    BMW
    Accenture
    Spotify
    McDonald’s
    Intel and AMD
    PepsiCo
    Coca-Cola
    Starbucks
    Oracle
    SAP
    Electronic Arts (EA)
    Carlsberg
    SONY
    TikTok
    Warner Bros
    Snapchat
    FIFA
    UEFA
    American Express
    Uber
    KPMG
    FedEx
    Airbnb
    Harley-Davidson
    Shell
    ExxonMobil
    General Motors
    Porsche
    Toyota
    Mercedes-Benz
    Infosys
    Tata Steel

    Apple

    This American multinational tech giant Apple stopped the sales of their popular products like iPhone, Ipad and others in Russia and started restricting most of the services like Apple pay that the company used to provide to the people of Russia. Apart from that, they have also blocked the access of the app store in the country. Although there is no physical stores of Apple in the country but the products used to get sold through third-party retailers.

    Microsoft

    Like its above acquaintance, the American multinational technology company Microsoft chose the same path and suspended all their activities in Russia. It includes their new products and services sale in the country. The company is also closely monitoring the situation and is on the lookout for the safety of its employees in Ukraine.

    Dell

    Texas-based technology company, Dell took a step forward and halted the sales of their products in both the countries Russia and Ukraine.

    Google

    The largest company that provides internet-related services in response to Russia’s behaviour towards Ukraine took down RT News and Sputnik from the Google Play Store in Europe. Google has also decided to stop monetizing any Russia funded media present on their platform

    YouTube

    The online video streaming platform, YouTube decided to block Russian channels from monetizing and the company said in a statement they are taking a number of actions against Russia.

    Mastercard

    After the devastating effects of the war on Ukraine by Russia, Mastercard Inc. one of the most popular financial service corporations, has suspended all its activities and has frozen every kind of transaction. The company stated that any cards issued by Russian banks will not be supported.

    H&M Group

    Clothing brand H&M halt their sales in Russia and said that the brand will refrain from doing any activities till the situation is resolved.

    Visa

    Another major financial corporation Visa stopped its operations and has decided to cease all their transaction in the coming days in Russia following its war against Ukraine.

    Meta

    Meta formerly known as Facebook decided to stop all the advertising in Russia, they have already blocked the advertisement and Russia owned media channels on their owned platforms like Facebook and Instagram.

    PayPal

    The major financial technology company PayPal especially dealing with online money transfers has halted their services in Russia and has also barred Russian users to use their services.

    Airbus

    The multinational aerospace corporation of Europe known for making products related to aerospace, Airbus has decided to stop functioning in the country. Airbus has been a companion of Russia for 30 years but the violence against Ukraine by the country has forced Airbus to pull out from the country. It was a big blow to the aviation industry in Russia.

    Samsung

    The tech giant Samsung famous for its electronic products has decided to stop the shipment of its products to Russia. Any kind of products like smartphones, semiconductors and other consumers electronics will no longer be shipped to Russia due to the current situation.

    Puma

    German multinational athletic sportswear brand stopped all its activities in Russia and has shown solidarity to Ukraine, Puma has over 100 stores in Russia. This decision has led to the suspension of that store and its products.

    Nike

    The athletic sportswear brand from America, Nike has decided to follow the steps of all other big western brands and halted its activities in Russia and closed all its stores.

    Disney

    American multinational entertainment company, Disney decided to halt all their theatre release and production in Russia amidst the Russian invasion of Ukraine, they are the first ones to do that. Disney also stated that its future business in the country will depend on the situation.

    Netflix

    Streaming platform giant Netflix has stopped all its services in Russia after their invasion of Ukraine. It has decided to part away from all the future projects and collaboration scheduled to happen with the country. The shooting of Russian shows under Netflix has been put on hold due to the situation.

    Ford Motor

    Ford Motor has decided to stop its activities in Russia. The popular multinational automobile manufacturer was been a partner of Russia for a long time but the invasion has resulted in the ceasing of all operations in the country. Ford has also decided to donate money that will use for the Ukrainian refugees.

    Adidas

    The German multinational athletic sportswear brand has decided to suspend all its activities. They stopped all their online shop in Russia, apart from that, all the physical stores got shut down as well. Although the company is closed until further notice, Adidas claimed they will continue paying the employees there.

    Adobe

    One of the most prominent multinational software companies of America, Adobe has also decided to cut ties with Russia and has decided to stop all their sales in the country. They have also stopped Russia’s access to Adobe Creative Cloud and said that it will refrain from providing any service to Russia now.

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    Amazon

    The biggest cloud computing and e-commerce company in the world, Amazon also decided to stop all its activities in Russia and Belarus, it has stopped accepting customers from the two and has decided to not provide its web services to these two countries.

    BMW

    The Russian invasion of Ukraine has led to the decision of luxury car brand BMW to put a halt to their sales in the country. They have also stopped manufacturing products in the country and stopped their shipments as well.

    Accenture

    The Ireland-based multinational company, Accenture which deals with IT Services and consulting has decided to cut ties with Russia and stopped their services after Russia’s violence against Ukraine.

    Spotify

    Music streaming platform, Spotify has ceased all its services in Russia, after the country invaded Ukraine.

    McDonald’s

    Global fast-food chain brand McDonald’s has suspended their operation temporarily in Russia and has decided to close its outlets. It has over 850 stores in Russia.

    Intel and AMD

    Intel and AMD stopped their shipments of industrial chips in Russia, it has happened after the US Government lodged new export restrictions after Russia’s invasion continues.

    PepsiCo

    PepsiCo has suspended their sales and production of soft drinks in Russia amidst the Russia-Ukraine crisis.

    Coca-Cola

    Following the steps of its competitor, Coca-Cola has stopped selling their soda in Russia. The company also showed support to the people of Ukraine.

    Starbucks

    Starbucks, one of the world’s biggest chains of coffee houses has decided to stop its activities in Russia.

    Oracle

    The American multinational company that deals with computer technology has decided to stop all their operation and has suspended their sales in Russia and showed their solidarity to Ukraine.

    SAP

    The software and technology company that deals with software for developing enterprises have decided to stop their all activities and function in Russia.

    Electronic Arts (EA)

    The American Video Game company has cut their ties with Russia and has decided to stop selling its games and content in the country.

    Carlsberg

    Danish Brewer Carlsberg has decided to stop every kind of investment in Russia and has decided to provide aid to Ukraine at the time of the crisis. They halted and stopped all their exports of beverages in Russia.

    SONY

    Sony has made its decision to not launch its latest game Gran Turismo 7 in Russia, which was said to release worldwide but was suspended after its conflict with Ukraine intensified.

    TikTok

    One of the most popular videos sharing sites, TikTok has limited its services in Russia and banned content creation in Russia following its war with Ukraine.

    Warner Bros

    The multinational entertainment conglomerate Warner Bros has decided to stop all their theatrical release of their films in Russia.

    Snapchat

    Snapchat another popular social media platform has temporarily disabled its service called heatmap in Russia due to the ongoing war with Ukraine.

    FIFA

    The international governing body of the Football Association has kicked out Russia from World Cup. They got disqualified after the country launched a war against Ukraine.

    UEFA

    The Union of European Football Association has banned Russia from all international football competitions.

    American Express

    The multinational payment card service provider, AmEx has joined the list of companies and has shut down all its activities in Russia.

    Uber

    Uber after the escalation of the war on Ukraine by Russia has cut ties with a Russian ride-sharing service named Yandex.

    KPMG

    The Global network of professional firms for audit, Tax and other services has decided to end their services in Russia to show support against the war going on in Ukraine.

    FedEx

    The global express delivery service FedEx has informed that they are halting their shipment service in Russia as a result of the ongoing geopolitical conflict between Russia and Ukraine.

    Airbnb

    Airbnb, an American company that provides services for tourism activities like homestay, food and lodging has suspended all its services in Russia.

    Harley-Davidson

    The luxury bike brand Harley-Davidson has suspended its business in Russia after Russia invaded Ukraine.

    Shell

    One of the major oil companies, Shell has decided to stop buying crude from Russia as a result of the ongoing war with Ukraine.

    ExxonMobil

    Another oil company ExxonMobil decided to leave Russia and stop all the activities of oil production there.

    General Motors

    General Motors, the multinational automotive manufacturing company has stopped their activities in Russia and has suspended its business in the country as of now.

    Porsche

    The invasion of Ukraine by Russia has also caused one of the leading luxury car brands, Porsche to halt their production in the territory of Russia.

    Toyota

    Toyota has stopped their production in Russia and has informed their staff to return to Japan as Russia’s war intensifies with Ukraine.

    Mercedes-Benz

    Luxury car manufacturing company, Mercedes Benz has stopped their activities including the production of cars in Russia following its conflict with Ukraine.

    Infosys

    The Indian multinational company Infosys, which is the second-largest IT company in the country has decided to shut down their office in Russia.

    Tata Steel

    One of the biggest steel manufacturing plants Tata Steel has decided to stop doing business in Russia. They have decided to suspend and end ties with the country.

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    Conclusion

    The war invasion by Russia has led to some of the biggest companies and brands backing out from the country, most of the brands are American and European and this has been done to create a financial strain in the country. The future of all these companies in Russia depends on the situation now.

    FAQs

    Is McDonald’s closing stores in Russia?

    Yes, McDonald’s has suspended its operations in Russia and temporarily closed its 850 restaurants.

    Is Coca-Cola still operating in Russia?

    Coca Cola has ceased operations in Russia amidst Russia’s invasion of Ukraine.

    What are some of the major companies that are leaving Russia?

    Mcdonalds, Pepsi, Coca-Cola, Starbucks, Nike, Puma, Adidas, Accenture, KPMG, Ford, Mercedes Benz, Shell, Harley Davidson, Mobil, General Motors, Airbnb, Toyota, Porsche, EA, Oracle, AmEx, Uber, TikTok, Intel, AMD, Amazon, Netflix, PayPal, H&M, Disney, Visa, Mastercard, Samsung, Apple, Adobe, BMW, Spotify, Shell, Google, Microsoft, Dell, Airbus, Meta, Sony, FIFA, UEFA, Carlsberg, and Warner Bros are some of the major companies that suspended their operation in Russia.

  • Why Netflix Shares Dropped? | Where Netflix Went Wrong?

    As humans, our main source of entertainment has always been movies and series. Two decades ago, television was the main form through which we used to get our daily dose of entertainment. Flash Forward to two decades later, Streaming services have taken the place of television. People are now more into OTT platforms for their dose of entertainment and these streaming services are also serving them with regular movies, series, reality shows and everything that can entertain them.

    Topping the list of streaming platforms is Netflix. Netflix was founded in the year 1997 by Ted Sarados and Reed Hastings. It started offering streaming services in 2007 and since then it hasn’t looked back. There is hardly anyone who doesn’t know about Netflix and hasn’t used it to watch a movie or a series at least once. According to Netflix, they have over 222 million subscribers from all over the world. Therefore, it is not wrong to say that it is the most popular streaming service.

    However, recently the biggest streaming platform has encountered some pretty big roadblocks and somehow they are the only one who is responsible for this. Netflix was eyeing to add 2.5 million new subscribers in the first quarter. However, the opposite happened, Netflix has lost over 200k subscribers in a couple of months and 37% of its shares plummeted in a single day. In this article, we will talk about what has gone wrong with Netflix, why it is losing its subscribers and why its shares dropped for the first time in a decade. So, without any further ado, let’s get started.

    Netflix Share Drop

    “There is a revolution happening, and within two years I think that Wi-Fi and Netflix will be built into all the televisions.” -Reed Hastings

    What Reasons Is Netflix Giving for Share Price Fall?
    Where Netflix Went Wrong?
    What Will Netflix Do Now?

    What Reasons Is Netflix Giving for Share Price Fall?

    After the drop in the share prices, Netflix has given three reasons for the loss of its subscribers and they are:

    Increase in Price

    Netflix Subscription Plans

    Netflix has increased their monthly subscription price in recent times.  UK subscribers are said to be paying three times more for what they used to pay two years ago for the same service. This has created quite a stir amongst the subscribers. Although Netflix said that the increase of the price is to provide more quality content and experience to their customers, the sudden hike in the prices in the UK and Ireland was frowned upon by the public.

    Netflix Exit From Russia

    Just like many other companies Netflix also suspended their operation in the country because of the ongoing conflict between Russia and Ukraine The Russia-Ukraine war is another major cause of the subscriber’s loss of the platform. Netflix stopped all their services in Russia after the country declared war on Ukraine. Over this course, Netflix has lost over 700k subscribers because of the escalation of the war.

    Sharing of Passwords

    Netflix said that the sharing of passwords with other households is also the reason for the loss of subscribers. According to reports, 100 million households are enjoying the streaming service free of cost, with the help of password sharing. As mentioned above Netflix has over 222 million subscribers and these people are sharing their passwords with their friends, extended family and relatives.

    Where Netflix Went Wrong?

    While in this situation, some of the decision by Netflix has backfired and are constantly frowned upon by the customers. Those decisions are:

    From its very existence, Netflix as a platform never included ads in their services and the brand value has always been about improving the customer experience. Unlike other streaming services, Netflix avoided advertising and believed that it could do better business without it. In a sudden shift in the platform’s belief, the CEO of the streaming giant revealed that they are planning to introduce advertising on the platform in one or two years. Contrary to their previous statement where they said they will not use advertisement and. This is going opposite of their brand values as they have always focused on improving the customer experience. This decision came after Netflix was reported of losing over 2 Lakhs subscribers. According to them, it is to lower the price of the subscription.

    Sharing Password Crackdown

    This is probably the biggest blunder the streaming giant has done. As mentioned above, there are over 200 million subscribers of Netflix in the world but along with that 100 million households are sharing the passwords of their accounts with others. Password sharing was never a problem and one of the reasons the streaming platform was popular because of this and how consumer-friendly it was, until now.  Netflix reasons that the increase in their price structure of the subscription is because of password sharing, so to decrease the subscription cost they have decided to stop password sharing.

    Being Insensitive

    The worst thing, a business can do is treat their customers as criminals. As mentioned above, Netflix is on the verge of banning password sharing among households in America. However, before that Netflix is reported to fine accounts in Costa Rica, Peru and Chile who share their password with others. This somehow is quite triggering and seems unfair to certain cultures of the world and is tarnishing the image of the brand.

    Bad PR

    It takes a lot of time to build the reputation of a brand but it takes a second to get it crumbled. Netflix as a brand always focused on customer experience and entertainment. However, the recent news of cracking down on passwords, increasing the subscription price and introducing ads on the platform shows that they have become money-hungry and are not that consumer-friendly anymore. This way, the damage has already been done and the PR of the company hasn’t even done their job properly, which has resulted in such a stir. As they are now changing their core strategy, customers are finding it infuriating.

    Cease to Innovate

    Netflix has been famous for its great and unique content. However, in recent times, people believe that the streaming service has stopped making unique and innovative content. They are creating content that are mundane and repetitive. This way they are forgetting the basic thing that made them successful.

    What Will Netflix Do Now?

    Netflix is right now in deep trouble. There is still no definite answer as to when Netflix will stop losing subscribers. It is the first time in a decade that the streaming giant has received such a blow. In fact, the worse is still not over as Netflix has already said that it will lose more subscribers with the current scenario. By the next quarter, it is predicted to lose 2 million more subscribers. Netflix is currently gearing up to follow its decision of introducing ads on the platform and banning password sharing. However, it is not clear if these two decisions will be able to revive Netflix or it will make it fall more into the abyss.

    Conclusion

    Netflix is submitting itself to the current Global financial situation and thus it has seen a drop in its shares and such a big one for the first time in a decade. Their way of handling the situation and lack of proper PR seems like they are only thinking about their revenue. So their decision of introducing ads and password crackdown make them look like they are shifting from being a customer-centric company to just a money-hungry organization. If proper steps are not taken any sooner, Netflix will lose more subscribers and maybe its USP as well.

    FAQs

    Why did Netflix lose 200k Subscribers?

    Netflix is losing its subscribers because it recently has decided to put a ban on sharing the account passwords by consumers.

    Who is the founder of Netflix?

    Reed Hastings and Marc Randolph are the founders of Netflix.

    When was Netflix founded?

    Netflix was founded in the year 1997 and started its streaming service in 2007.

  • How Does Category Design Help in the Success of Your Business?

    Surviving and thriving in the business world requires forward-thinking and innovation. Category design is a strategic approach that uses points of view to win customers and increase brand awareness. The traditional method of creating products followed by rigorous marketing doesn’t always guarantee results.

    If you’re looking to establish yourself in a certain niche, the category design principle is the way to go. Even in specialized niches, there’s a possibility of crowding. Category design helps create a unique company powered by unique processes and a great brand—ultimately achieving the ‘Category King’ title.

    The concept is premised on owning the market and tilting the thought process of your target clients in your favour. The mental shift in the appreciation of your brand is the end goal. In this article, we will talk about how category design helps businesses to achieve success.

    Harmonized and Laser Focus of Marketing Campaigns
    Discovering and Dominating New Category of Business
    Creating Dominant Products
    Tapping Into Existing and Working Systems
    Create Loyal and New Customers
    Impacting the Society Positively

    Harmonized and Laser Focus of Marketing Campaigns

    Marketing efforts and campaigns may contain different messages making it a trial and error method. The effectiveness of marketing efforts is a big success factor in a business. To dominate markets, a harmonized marketing campaign backed by a solid product can lead to ultimate success.

    One of the key marketing originators is your staff. A clear understanding of the Point of View (POV) can be beneficial in a variety of ways. This includes: –

    • Campaigns in Media– This will create an overall standard angle of blogs, messages in the radio and TV ads, and other assets such as influencer marketers.
    • Employee Marketing– They’ll have a harmonized way of tackling issues like customer service leading to brand authority.

    Brands that command markets use a standard way of doing things. Harmonized marketing messages can help a lot in achieving this.

    Discovering and Dominating New Category of Business

    Popular brands like Twitter, Coca-Cola, Airbnb, Uber, and Apple have one thing in common. They take time to study the market, develop a product that answers the needs and create a winning and unique marketing campaign.

    These companies don’t necessarily create new inventions. For instance, taxi services existed before, but Uber’s business model was created to meet a certain market need. This propelled them to become a global household brand.

    Creating a mind shift and new demand is what revolutionizes markets. Airbnb for instance is a unique service that offers cheaper alternative accommodation for guests around the world. Since it was launched in 2008, it has hosted 400 million guests and is present in 191 countries.

    The huge success of these unique companies is inspired by daily problems. These companies leverage existing technology, existing industries, and marketing platforms to monopolize these categories.

    Creating Dominant Products

    In a bid to make money in business, people tend to go with the flow. This leads to continued production of mediocre products, shrinking value to the customers, and, ultimately, poor response from the market.

    Listed below are ways in which great and legendary products are created and established: –

    • Study Competitors– This is an old principle but it’s very important in any business for success. Look at the model of operation to spot areas of improvement. Sealing loopholes in a competitor’s product can be a springboard to a great product.
    • Customer Pain Points– Words on the street, online reviews, and professional reviewers can help discover product ideas. Category design aims at creating products that offer genuine and niche solutions.
    • Product Presentation– Packaging products to dominate markets involves branding messages and an overall presentation that seals the existing loopholes.

    Using category design, your product can achieve the dominant player status. This is achieved through a thorough product development cycle.

    Tapping Into Existing and Working Systems

    One of the biggest reasons for creating businesses is making revenues, profits, and generating wealth. To shorten the journey to success, re-inventing an old principle doesn’t always translate into revenue. If a business can use the already existing models and systems, it’s much better.

    Let’s look at two businesses that utilized this model to succeed.

    • Netflix– Netflix and other similar programs made watching movies and other TV programs very affordable. Instead of paying a huge cinema entry fee, Netflix offers a revolutionary service where a nominal monthly subscription can provide access to unlimited movies and programs. The model of business is an agency that sign-ups movie productions and brings them to the masses.
    • Amazon– This e-commerce company made a $3.3b net income in 2019. Amazon doesn’t manufacture any of the products it sells and doesn’t own the internet or the delivery channels. This is an example of a successful company that brings ideas into an existing ecosystem.

    Leveraging existing business models helps eliminate huge capital expenditure. This lets you focus on solving customer pain points and popularizing your unique viewpoints.

    Create Loyal and New Customers

    Category design doesn’t bring big business to you, but loyal and new audiences do. People and the market get excited by new products, unique innovations, and ground-breaking ideas. This makes them reward you with continuous business and social applause.

    Loyal customers give you positive reviews and recommend you to other clients. This, in turn, creates a spiral effect that brings new customers to you. Ultimately, you can use customer support and free endorsement from them to create new and better products.

    Impacting the Society Positively

    Apart from profits, social impact at the community and the global level is one of the major objectives of a business. Category design can help create products coupled with marketing messages that can drift people’s mindsets.

    Apple, for instance, uses the tagline ‘Think differently’. Its products and brands reinforce the message. This makes such a brand have a positive impact on future business leaders and innovators. This has propelled the success of multiple brands such as iPod, iPhone, Apple Store, and iTunes.

    Conclusion

    Category design is a unique way of improving your business and putting it on the path to success. The idea is founded on creating a highly specialized niche that can help you dominate markets. Forward and revolutionary thinking are the secrets of the success of big and wealthy brands. To fully tap into this strategy in business, investing in your innovation hub should be a top priority. This will help you research, develop, and tilt viewpoints so that your company can thrive.

    FAQs

    What is Category Design?

    Category design is a strategy that helps a business develop its own classification of products and services.

    When was Category Design proposed?

    Category design was first proposed in a book called Play Bigger.

    Who was the writer of Play Bigger?

    Play bigger is written by Al Ramadan, Dave Peterson, Kevin Maney and Christopher Lochhead.

    What is a Category blueprint?

    A category Blueprint is a design of how a product or service will work in the future.