IS 300 T/TH 2:00
YouTube Case 1. There are a few competitive forces that have challenged the movie industry in the past decade. For example, with the creation of online streaming there was a big increase of illegal downloads that have begun to happen. Substitutions are popping up all over the web to illegally attain videos instead of paying for them. This creates more bargaining power for the customers, because instead of paying rental fees or buying high priced movies, customers can just illegally download the movies for free. So instead of going into a box and motor store, it creates a rivalry because people could just sit in their home and order a movie. This forced the movie industry to try and adapt to different business strategies. Movie companies began to make deals with online streaming services to allow people to legally download movies. But, …show more content…
This is an ongoing issue for the movie industry that they must battle head on.
2. The business model of YouTube is differentiation. YouTube came about when the internet speed was increasing and allowed to download larger files. Before YouTube there was no place really for armature film makers to put their videos so the world could see. They not only came out with a better product, but it was new at the time. There were other places where you could post videos, but there wasn’t a site at that time that was only made for posting videos. As time went on YouTube began to focus on its suppliers of videos, by paying them when videos they uploaded reached a certain amount of views. This increased there supply of videos because everyone wanted to make money. Which thus brought more videos to its customers and increased its customer base, with an array of different videos for different people.
3. The bargaining power of customers is weak, when it comes to YouTube. But, since the