Spotify: An Ecosystem Powered by Network Effects
Spotify's music streaming model leverages growing network effects to (hopefully) save the struggling music industry.
Entertainment
YouTube 1, everyone else 0
YouTube is the master of both direct and indirect network effects. Take a look…
Pandora: The More You Listen, The Better It Gets
Whenever a user likes a new song, Pandora’s playlist choices improve for ALL uses
Spotify’s Business Model – Competing With Network Effects
Spotify leveraged network effects to gain a massive user base, and amass (almost) the entirety of the world's popular music collection. Now the company is seeking to capture value from its users, which as it turns out are the ones that pay $9.99 per month for a premium subscription. But the incentive system between the company and its users is broken.
Netflix – Getting Smarter Everyday
Netflix exhibits both direct and indirect network effects through its recommendation engine, content acquisition process, and enabling devices.
Blockbuster – From Blockbuster to Bomb: An Industry Leader’s Stunning Failure
What led to the downfall of the industry giant Blockbuster ? On its peak in 2002 it was valued $5 billion, 9 years later it was sold for only a little over $300 million and was shut down entirely in 2014. Blockbuster is a perfect example for losing the game of digitalization by sticking too long to an outdated strategy and failing to understand market changes which other exploit.
How Little Roku Dethroned the Big Apple… But Can They Stay On Top?
Roku’s open platform, close relationship with Netflix, and seamless user experience catapulted them to King in the U.S. But will they persist?
The Sonos Platform is Greater than Software or Hardware
Sono's platform has made its hardware more valuable – not less – over time.
Songkick: A winner in exploiting streaming behavior to maximize revenues to the music industry
Concert discovery app Songkick is helping improve monetization of the offline side of the music business, by leveraging information from the fans online behavior.
WTG, Valve! Steam FTW!!
Valve is currently “pwning” the video game industry with its flagship product, Steam.