Question

Is streaming content provided by studios a commodity or differentiated good? How does this influence supplier power? How has this changed the shift from DVD-by-mail to streaming subscriptions?

Answer 1

Streaming content provided by studios is a differentiated good as it is customized to suit the customer requirement or popularity or preference. It is not a commodity as it is not extremely valueable for existance, i.e. one can live without it and it is not essential to life.

Supplier power decreases as the customers are driving the streaming content. The most popular or most searched content receives higher preference, than other content. Thus, it is the customer who decides which content to view and which not to.

Earlier, DVDs were a medium to transfer data, videos and films from one place to another, rather it helped to distribute among masses. With the advent of technology, internet facilitated e-mails. These could be directly accessed by customers through their PCs. However, times have changed. With android phones, internet is accessible on mobile phone. People no longer need to use PCs as mobile phones contain all the necessary apps which enable the user to access data from any part of the world, at anytime. Thus, streaming online has become more common and comfortable today. Customers view videos and other data through their cellphones. And this not only enables them to save time and money but also select as per their personal preference.