GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Subscription
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Freemium
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Franchise
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None of the above
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Detailed explanation-1: -Netflix is one of the current pioneers of subscription-based content. It runs on a Subscription Video on Demand (SVOD) model. Subscribers pay for a monthly plan and are given access to a vast library of media-any time, anywhere. Thus, subscriptions are Netflix’s main source of revenue.
Detailed explanation-2: -Netflix introduced its online streaming service in 2007 and subsequently separated the streaming service and DVD rental business. The company showed inspiring business model innovation by presenting a comprehensive recommendation algorithm alongside integrating backward into content production.
Detailed explanation-3: -In an SVOD model, businesses charge a recurring fee for access to their video platform. Paying members get full access and can stream as much video as they like. SVOD first came about with services like Netflix and continues to dominate popular OTT businesses today.