Chapter 10


Case Study

Netflix had to overcome many challenges starting with competition with Blockbuster at the time was huge because they already had well established brick and mortar locations compared to Netflix mailing rental. Mailing was slower than going to the store and picking one up on the spot so they began to more to better prices and being able to order online, but the problem was that many individuals did not have the technology to benefit from online ordering.  Netflix they offered streaming services that offered instant access to movies which they had to buy the rights to use from the big name Hollywood companies to create new content. Over time with the acceleration of technology, streaming became a hit and after a few years pushed blockbuster out of business.

1 Convergence in this case could refer to the meeting of two or more companies/ideas where they become competitors and begin to fight to become better. Another instant could be the convergence of business idea/model with outside forces such as Netflix’s streaming service with the growth of computers/tablets/consoles in homes. Lastly, convergence could also be the merging of two or more ideas/groups in order to become better together.

5 The ability to view the musical content but not the ability to download and then copy the content to share later. It is a subscription to view the content but not own the content.

10 Books probably have to deal more with educational rights than magazines do which means that the content can be shared if it is for educational purposes. Magazines most likely do not see their content being shared or used like scholarly works that books do.

15 Technology and pricing are the main factors. The consumer must be able to have access to the technology required to perform a certain function and the price must be affordable on both sides (buying the technology and buying the online content) in order for the consumer to accept the new online content.

20 There are different types of internet gamers and they typically fall into the categories of beginner, causal, hardcore, and professional. Beginner is as it sounds some individual who is just starting out and doesn’t know much about the community. Causal is someone who plays occasionally if they have some time to kill but are not heavily involved with multiple games. Hardcore gamers usually know a lot about game types, the community, easter eggs and can be achievement hunters. Professional can be label as those who compete in tournaments and can gain money and/or those on Youtube who will help the community with game run-throughs/sneak-peaks/ and other fun instance; and successful Youtube gamers will get paid on number of subscribers/views/endorsements  


With Amazon purchasing Twitch, it has pushed itself into a streaming community that consists of gamers/companies/Youtubers/and individuals. In the gaming world, live streams are a popular thing for Youtubers to do and gaming companies will also use the service to unveil new games/consoles/etc. to the world at large conferences such as E3. Amazon puts money into so that their service is viewed as the goto streaming service that is reliable and easy to use; which helps Amazon’s image even more.