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ELC 498. Day 12. Today October 20 BMG Entertainment - Kristin Recap of Online Content Providers Intro to Online retailers October 24 Staples.com -Anup Round 2 Grading due. October 27 Petstore.com –Steve October 31 Sendwine.com – Jeff Recap of online retailers November 3
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ELC 498 Day 12
Today October 20 BMG Entertainment - Kristin Recap of Online Content Providers Intro to Online retailers October 24 Staples.com -Anup Round 2 Grading due October 27 Petstore.com –Steve October 31 Sendwine.com – Jeff Recap of online retailers November 3 Intro to online brokers DLJDirect – Donnie November 7 Carpoint - Kristin DAY 12 Agenda
General Comments on Midterm • The majority of answers required more analysis in the context of the GBF model derived by the author • I am always looking for objective analysis (not subjective) • Make sure your facts are correct • Be wary of stuff you find with a “google” search • Use good research materials
INTERNET BUSINESS MODELS ACCESS PROVIDERS PORTALS CONTENT PROVIDERS BET.com; CNET; Boston.com; BMG RETAILERS BROKERS MARKET MAKERS NETWORKED UTILITY PROVIDERS APPLICATION SERVICE PROVIDERS
Issues Facing Online Content Providers • Register users or find other ways to target ads? • Become a vertical portal/“infomediary”? (CNET; BET; Boston.com) • Link to third party information sources • Add commerce capabilities • Be “complete, credible, and convenient”; aggregate and integrate • Syndicate content to other websites? • Exploit multi-media linkages? (e.g., CNET: TV and radio)
Issues Facing Online Content Providers • Revenue Streams • AD Revenue • Targeted raises the premium • Paid Content • Licensing • For an incumbent is the Internet a Threat or an opportunity?? • Boston Globe • CNET • BET • BMG
GBF for Content Providers? • GBF when you believe • Online ad/commerce revenue will surge over next few years • AND, new web user’s brand loyalties are malleable • AND, “winner-take-all” dynamics apply, due to: • Network effects • Scale economics • Intrinsic ability to retain customers
GBF for Content Providers? • GBF when (con’t) • AND, the lifetime value of a customer’s cash flow exceeds the cost of acquiring the customer • AND, the risks of competitor preemption are high • AND, the company can manage operational growing pains • AND, the capital markets will reward market leaders
Get it right First when: • Protecting quality and brand is paramount • “learning by doing” yields a big payoff • Which is it for these providers “GBF” or “GIRF”? • Boston.com • CNET • BET.com • BMG