Success stories (U24: D1)
Learning outcome 1 (U24): Understand the products that are produced within and across media industries.
D1 (U24) Discuss how successful media concepts have been positively exploited across multiple media industries.
Amazon Prime is an online video streaming service which was launched on September 7th, 2006. It was originally launched as Amazon Unbox in the United States, the service grew with its expanding library, and added the Prime Video membership with the development of Prime. It was then renamed as Amazon Instant Video on demand.
Amazon Prime has a broad collection of films, tv series, documentaries catering to all genres from comedy and horror to kids. It offers tv shows and films for rent or purchase and a selection of original content made by Amazon studios. Similarly prime video becomes automatically available to customers who are Amazon Prime members.
By becoming an Amazon Prime member customers are able to watch the shows they love wherever and whenever by simply downloading the episodes when connected to wifi and then streaming them without the app using any data. This has drawn a wider range of customers since the launch of this feature which has allowed Amazon to branch out in the shows they offer.
The streaming site has also become more popular in recent years due to Amazon creating their own shows and offering them on the website/app. From the graph we can see the that since 2013 the number of Prime Video subscribers has increased by 87% both internationally and in the US. Whilst the growth in the US has been relatively steady, the growth internationally has been much more steep, suggesting that foreign territories are becoming ever more important.
Amazon prime was able to grow at the rate it did due to the fall in popularity of Blockbuster and video tape companies. Similarly, technological convergence becoming more modern has also impacted the use of apps like amazon prime. Technological convergence is the tendency that as technology changes, different technological systems sometimes evolve toward performing similar tasks. Some examples of technological convergence systems include a smart phone, a laptop and a smart tv, as they all have the ability to carry out multiple functions rather than just one. A mobile phone nowadays is more similar to a mini computer rather than from when the mobile phone was invented in 1973. Since 2017, Amazon's video on demand service, Amazon Prime Video, occupies the second position in the growing video-on-demand industry, with around 26 million subscribers in the US alone.
Since 2006, when Amazon Video was released, Amazon have been able to improve and update the video streaming site. It has now become more accessible for viewers by being available online, instead of the original method which operated by customers choosing the films online and having them posted as DVDs to their home address.
Amazon's audience can be organised into various different categories. The first category, is geographical audience segmentation. For example, the region and density of land that amazon covers. Amazon covers over 100 countries - both urban and rural. The second category that can be linked to Amazon's customers is demographic segmentation. Which is the age, gender, life cycle stage and occupation. By dividing Amazons target audience into segments, customers amazon prime accounts can be more personalised with films and tv series that they might enjoy.
When Amazon was first launched, it had a clear and ambitious mission to offer: Earth's biggest selection and to be Earth's most customer-centric company. Today, Amazon says: "this goal continues today, but Amazon's customers are worldwide now and have grown to include millions of consumers, sellers, content creators, developers, and enterprises. Each of these groups has different needs, and we always work to meet those needs, by innovating new solutions to make things easier, faster, better, and more cost-effective". Amazon's current strategy is to relentlessly focus on customer experience by offering their customers low prices, convenience, and a wide selection of merchandise. Similarly, their vision is still to consider how their core marketing messages are summarising the Amazon online value proposition and how they communicate both the on-site and offline communications. However, of course, achieving customer loyalty and repeat purchase customers has been key to Amazon success, especially in achieving awareness. If Amazon were to increase their customer retention by just 5%, it would boost profits from roughly 25% to 95%, and as customer retention is a huge factor in the longterm success of e-Commerce stores, Amazon cannot afford to overlook customer retention. As of June 2019, Amazon prime members in the US were estimated to be 105 million, which accounts for 82% of American households. This suggests that Amazon's loyal prime members spend annually an average of $1,400 - more than twice as much as the average casual buyer, which is estimated at $600.
For customer experience, it's important that Amazon personalises these experiences. Amazon uses Monetate, which is an easy tool that allows you to personalise suggested products based on past user behaviour on your site in order to keep customers coming back, through the personalised suggestions. Another way that Amazon makes sure they provide high standard customer service is by making the corporation available on all devices. Amazon's site provides smart categorisation and search functionality - with auto-fill, 1-click ordering, and other features, the shopping experience is extremely easy and convenient - which is something modern-day shoppers look for, whilst on-the-go.
Another benefit of being an Amazon prime customer, is that you get free-shipping, same-day delivery (on certain items), but they also offer free access to streaming music and video content with their Amazon music service. Amazon music is a music streaming platform and online music store. It was launched in September 2007, and in January 2008 it became the first music store to sell music without digital rights. The service is available in most countries around the world. It is integrated with the digital music Prime and unlimited streaming services, as well as the music store for purchases. The players allow users to store and play their music from a web browser, mobile apps, and desktop applications and other platforms such as smart TVs. Moreover, Amazon Music Player accounts get 250 tracks of free storage, however, music purchased through Amazon MP3 store does not count towards the storage limit.
Amazon prime is also accessible via Amazon fire tv which is a streaming media player that allows you to watch videos, listen to music, play games, and use other types of apps from the internet on your TV. By Amazon expanding its brand to meet all forms of media they are successfully exploiting media concepts across multiple media industries in order to gain maximum profit. One possible downfall of Amazon Prime is that not all content is free once you pay for the service (unlike Netflix). If you want to watch certain TV programmes, sports or films you have to pay an additional amount to have access to it.
During the French Tennis Open, viewers were able to access the live footage on Amazon video via laptops, computers, tablets, smartphones and smart TVs. This was Amazons first link with Sky sports once they saw the huge success and major profit boost Amazon earned from live streaming the French Tennis Open. This led to Amazon making a deal with Sky Sports, where live sports are now that are usually being streamed on Sky Sports are also being streamed on Amazon prime. By doing this, both Amazon and Sky Sports have targeted a wider range of sports fans, increasing their profit margins because not everyone can afford to have Sky, so instead they can use Amazon prime as a more affordable method to watch live sports. This appeals to the audience by being more inclusive to fans who come from different financial backgrounds, giving them a chance to be able to watch the same quality of tv but at a cheaper price. Similarly, this also expands Amazon's wider audience because more people will be encouraged to watch their preferred sport via Amazon instead of another channel of media, such as BBC. Amazon video also produces their own content (both tv shows and films) that all prime members have access to, whereas non-prime members have the option to rent/buy the product at a cheaper price than the original RRP. This also widens Amazon's wider audience because customers may prefer to buy/rent their desired films/ tv series via Amazon so that they are accessible from their phone/laptop/ smart tv, rather than just having a physical copy of the content.
D1 (U24) Discuss how successful media concepts have been positively exploited across multiple media industries.
Amazon Prime is an online video streaming service which was launched on September 7th, 2006. It was originally launched as Amazon Unbox in the United States, the service grew with its expanding library, and added the Prime Video membership with the development of Prime. It was then renamed as Amazon Instant Video on demand. |
| Sourced from Google |
By becoming an Amazon Prime member customers are able to watch the shows they love wherever and whenever by simply downloading the episodes when connected to wifi and then streaming them without the app using any data. This has drawn a wider range of customers since the launch of this feature which has allowed Amazon to branch out in the shows they offer.
The streaming site has also become more popular in recent years due to Amazon creating their own shows and offering them on the website/app. From the graph we can see the that since 2013 the number of Prime Video subscribers has increased by 87% both internationally and in the US. Whilst the growth in the US has been relatively steady, the growth internationally has been much more steep, suggesting that foreign territories are becoming ever more important.
Amazon prime was able to grow at the rate it did due to the fall in popularity of Blockbuster and video tape companies. Similarly, technological convergence becoming more modern has also impacted the use of apps like amazon prime. Technological convergence is the tendency that as technology changes, different technological systems sometimes evolve toward performing similar tasks. Some examples of technological convergence systems include a smart phone, a laptop and a smart tv, as they all have the ability to carry out multiple functions rather than just one. A mobile phone nowadays is more similar to a mini computer rather than from when the mobile phone was invented in 1973. Since 2017, Amazon's video on demand service, Amazon Prime Video, occupies the second position in the growing video-on-demand industry, with around 26 million subscribers in the US alone.
Since 2006, when Amazon Video was released, Amazon have been able to improve and update the video streaming site. It has now become more accessible for viewers by being available online, instead of the original method which operated by customers choosing the films online and having them posted as DVDs to their home address.
Amazon's audience can be organised into various different categories. The first category, is geographical audience segmentation. For example, the region and density of land that amazon covers. Amazon covers over 100 countries - both urban and rural. The second category that can be linked to Amazon's customers is demographic segmentation. Which is the age, gender, life cycle stage and occupation. By dividing Amazons target audience into segments, customers amazon prime accounts can be more personalised with films and tv series that they might enjoy.
When Amazon was first launched, it had a clear and ambitious mission to offer: Earth's biggest selection and to be Earth's most customer-centric company. Today, Amazon says: "this goal continues today, but Amazon's customers are worldwide now and have grown to include millions of consumers, sellers, content creators, developers, and enterprises. Each of these groups has different needs, and we always work to meet those needs, by innovating new solutions to make things easier, faster, better, and more cost-effective". Amazon's current strategy is to relentlessly focus on customer experience by offering their customers low prices, convenience, and a wide selection of merchandise. Similarly, their vision is still to consider how their core marketing messages are summarising the Amazon online value proposition and how they communicate both the on-site and offline communications. However, of course, achieving customer loyalty and repeat purchase customers has been key to Amazon success, especially in achieving awareness. If Amazon were to increase their customer retention by just 5%, it would boost profits from roughly 25% to 95%, and as customer retention is a huge factor in the longterm success of e-Commerce stores, Amazon cannot afford to overlook customer retention. As of June 2019, Amazon prime members in the US were estimated to be 105 million, which accounts for 82% of American households. This suggests that Amazon's loyal prime members spend annually an average of $1,400 - more than twice as much as the average casual buyer, which is estimated at $600.
For customer experience, it's important that Amazon personalises these experiences. Amazon uses Monetate, which is an easy tool that allows you to personalise suggested products based on past user behaviour on your site in order to keep customers coming back, through the personalised suggestions. Another way that Amazon makes sure they provide high standard customer service is by making the corporation available on all devices. Amazon's site provides smart categorisation and search functionality - with auto-fill, 1-click ordering, and other features, the shopping experience is extremely easy and convenient - which is something modern-day shoppers look for, whilst on-the-go.
Another benefit of being an Amazon prime customer, is that you get free-shipping, same-day delivery (on certain items), but they also offer free access to streaming music and video content with their Amazon music service. Amazon music is a music streaming platform and online music store. It was launched in September 2007, and in January 2008 it became the first music store to sell music without digital rights. The service is available in most countries around the world. It is integrated with the digital music Prime and unlimited streaming services, as well as the music store for purchases. The players allow users to store and play their music from a web browser, mobile apps, and desktop applications and other platforms such as smart TVs. Moreover, Amazon Music Player accounts get 250 tracks of free storage, however, music purchased through Amazon MP3 store does not count towards the storage limit.
Amazon prime is also accessible via Amazon fire tv which is a streaming media player that allows you to watch videos, listen to music, play games, and use other types of apps from the internet on your TV. By Amazon expanding its brand to meet all forms of media they are successfully exploiting media concepts across multiple media industries in order to gain maximum profit. One possible downfall of Amazon Prime is that not all content is free once you pay for the service (unlike Netflix). If you want to watch certain TV programmes, sports or films you have to pay an additional amount to have access to it.
During the French Tennis Open, viewers were able to access the live footage on Amazon video via laptops, computers, tablets, smartphones and smart TVs. This was Amazons first link with Sky sports once they saw the huge success and major profit boost Amazon earned from live streaming the French Tennis Open. This led to Amazon making a deal with Sky Sports, where live sports are now that are usually being streamed on Sky Sports are also being streamed on Amazon prime. By doing this, both Amazon and Sky Sports have targeted a wider range of sports fans, increasing their profit margins because not everyone can afford to have Sky, so instead they can use Amazon prime as a more affordable method to watch live sports. This appeals to the audience by being more inclusive to fans who come from different financial backgrounds, giving them a chance to be able to watch the same quality of tv but at a cheaper price. Similarly, this also expands Amazon's wider audience because more people will be encouraged to watch their preferred sport via Amazon instead of another channel of media, such as BBC. Amazon video also produces their own content (both tv shows and films) that all prime members have access to, whereas non-prime members have the option to rent/buy the product at a cheaper price than the original RRP. This also widens Amazon's wider audience because customers may prefer to buy/rent their desired films/ tv series via Amazon so that they are accessible from their phone/laptop/ smart tv, rather than just having a physical copy of the content.
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