engleski

Comparison of business models of the streaming platforms Spotify and Netflix

The aim of this paper is to point out the similarities and differences of the business models of the streaming platforms Spotify and Netflix. Corporations belong to the segment of new media industries that emerge as a result of digitalization and digital transformation of production processes. The core business model is the same for both corporations. Spotify allows you to listen to music in the subscription model, while Netflix allows you to watch video content in the subscription model. The platforms use the platform and two-sided market economy model, and operate in a zero marginal cost model. The development of streaming platforms is associated with the development of postmodern society, and especially with the habits of Generation Z. The subscription model has become dominant in relation to the possession of music or video content. By comparing financial performance indicators, we will analyse the advantages and disadvantages of corporate business models.

Netflix, Spotify, subscription, platform economy, zero marginal cost.

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