Thursday, 23 April 2015

Opportunities of Globalization and New Business Model


Background Information:

Emerging Technology: Cloud Computing

Choice of Industries

We are mainly focused on the application of cloud computing in online music, and we want to choose a very focused strategy in the final part analysis. The four industries that we choose are all related to the online music industry.

Social media

  • Online video industry
  • Social Networking industry
Music industry

  • Music publishing industry
  • Independent music industry
Opportunities presented by globalization

Due to the globalization, the social media have seen massive growth, with millions of Internet users actively participating across various networking websites. The application of cloud computing technology enable impossible become possible in social media industry.

1. Social Media

Application Diversification

Cloud computing, as software, platform and infrastructure, can integrate with social network. For example, Facebook users can build scalable cloud based applications hosted by Amazon Web Service. Different social networking functions are then incorporated in an application specific portal.

Data analytic

Social media have more than millions of users globally. The users and user relationship present large datasets for analysis. Cloud computing is a possible solution as a computing power to provide the realization of sediment analysis, such as mapping disease outbreaks and natural disaster.

Global online education services

Users can store the courseware and videos in the cloud. After recording the educational videos, users can distribute them instantly to end-users for the teaching services.

Social video—technology makes people of different countries live together

With the support of cloud computing, some social applications such as video chat, remote video conferencing and telemedicine will not only be able to break the regional and national boundaries, but also will achieve instant statistical analysis, getting operational data and billing data, which can optimize operating strategy and reduce operational costs. (info.broadcast.hc360.com)



Global concert and TV broadcast


With the development of cloud video, global cooperation of online video industry is inevitable. Because of the global cloud cooperation, it will be convenient for people to enjoy any concert and TV broadcast globally.


2. Music Industry

We are quite familiar with one sentence, “there is no boundary for music”, and in the cloud music era, this sentence would be more powerful than before. 


Global jukebox
Musical works can spread in the cloud all over the world 


Fair competition for all the artists
Media exposure of unsigned artists

Overseas output

Transnational cooperation


New Business Model in Music Publishing industry


The Music Publishing industry focuses on the diversity of publishers, multiple publishing channels and the copyright control. Business model of music publishing has been changed under the influence of globalization mainly in three aspects:


1. Music publishers: Company, Individual
Individuals like independent musician can publish their own music world wide through cloud.

2. Publishing channels:Official web, Apps, Third-party platform, online movie, online-game, drama, telecommunication

3. Copyright control: Digital Rights Management (DRM) system
Install the DRM system in the cloud to protect the music copyrights when the music is published.


New Business Model for Independent Music Industry

Independent music is music produced independently from 5 major recording companies or their subsidiaries, the marketing strategy of which is different from recording companies. They are a group of people not only focusing on commercial profits. Value of artists, originality of songs, and the thoughts implemented through the creation of the work are more important for them.

Different from signing artists in major company, the value of independent musician is expressed through musical works and live show. Independent musician has their own cloud music player for expressing themselves.

Business Model concentrates on three parts:value for the customers, increase profits, and target customers.—Combination of live show and cloud music

1. Productivity
    Publishing on the cloud service is cheaper than hypostatic record, like CDs.
    Thin margins, long-term vision.
2. Place
    Web platform, Mobile Apps.
3. Price
    Subscription daily/monthly/yearly
4. Product Strategy
    broad selection of music styles and musicians.
5. Purchasing
    Several minutes free listening and watching, then pay.
6. Physical Evidence   
    Events(place, time, price, and artist)-cooperation with online ticketing company
    Social communication-power of fans
7. Promotion
    Internet-social network

New Business Model in Online Video Industry 

With the high pace of technology development, online video, not only is changing the pattern of Internet industry, but also is becoming a main kind of the Internet experience of people's life, and becoming an indispensable part of people's life. (info.broadcast.hc360.com)

The combination of cloud computing and online video is inevitable. Smooth, high-definition, stability are the three essential elements of online video , in order to meet these three points we need a strong and comprehensive video management system , the demand for video services now is keep increasing, as a result, more and more Internet companies chosen to join the video cloud computing industry. (roll.sohu.com)

Cloud computing technology effectively reduced the cost of online video services. Cloud computing has provided great technical support for the video industry, besides, cloud computing has expanded service model of video industry to some extent, such as the online video hosting service. Through the cloud computing the video website can help the users solve a series of technical problems quickly, such as resolve video storage, transcoding, distribution, broadcast and advertising. Due to the cloud computing features such as elastic expansion and on-demand using, it also greatly reduces the cost of video operation. (tech.qq.com)

Extend video service from the video program to the online game

Making money through advertisements in the video service is a common and traditional business model. However, nowadays with the support of cloud service, the online video can extend its service from the video program to the online game, which will create new business chance. (it.chinairn.com)

Produce and broadcast independent video program

Independent content is the key force to improve traffic and user coverage for the video website. Instead of the competence of buying copyright, produce their own video programs will be a big trend for the video websites. (www.chinacloud.cn)

Provide integrated cloud video solutions

The solutions will provide services like basic website, data, content production, distribution and content operations for application areas such as online education, social video, new media, radio and television network. (it.chinairn.com)

Smart hardware-- the "magic weapon" for online video sites to link the cloud and the clients



New business model in social network industry

Internally

With the adoption of cloud, Social network need no more investment in the infrastructure, which reduce cost. Social network can establish strategic cooperation with third parties to enrich its application.

Externally

Marketing
In social network, cloud computing technology create a new mode of marketing. The “favorite” button has make the advertisement become spontaneous. Different from the traditional mode, sharing information between friends make the product promotion more efficiently.

Turn to be mixed social and business platform
Due to the application of cloud computing, social network become a business platform rather than original social platform. Other industry such as music industry applied widely in the social network. The new issue of single music, album in social network can draw attention within short time. Social network is everywhere without limitation of geographical regions. The cooperation with organizations enable social network to keep a sustainable development.


Customized service
Cloud computing provide an advanced tool to analyze various data. social media is able to understand the actual customer need based on the data analysis. The new service and application in social network platform is more targeted.



Conclusion
Technology of cloud computing helps to create new business models that promote long-term revenue growth.Companies worldwide has recognized cloud computing’s abilities to improve sustainable competitive advantage.


Reference 

Websites:
http://tech.qq.com/a/20130131/000141.htm






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