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 Learn how to make money with Google and Netflix

Learn more about how business models for companies like Google and Netflix work and get inspired to build a profitable business.

Google and Netflix offer business models that have exceeded expectations and led to overwhelming success. A business model is the logic that a company or organization creates, distributes, and captures. The business model defines how the company will operate in order to make money. Thus, the model relates to operations such as:

+ What will the company offer to customers?

+ HOW IS DELIVERY

+ HOW TO MAKE A PROFIT

The business model will show the company's strategy and which customer segment it should focus on. In this article, we will focus on the models approved by Google and Netflix.

Business Model - Google

Google is one of the most important technology companies in the world, and its business model is called a multi-stakeholder platform because it serves two different segments of customers that are interconnected but coexist, in which the presence of one creates value for the other.

Its main product is a free high-quality worldwide search engine. While it doesn't generate revenue, its second biggest offering - sponsored links to people and companies looking to get online - generates huge revenue for the company.

While your second offer only leads to sales, it exists only due to the fact that a large number of users are using the free Google tool. Google mainly makes money through advertising links / Google AdWords. This service is attractive to advertisers as it allows them to target their online campaigns to specific search queries from specific groups, completely immersing themselves in the business picture.

Valuable site

Google's value proposition (a proposition that addresses a different problem or needs for each customer segment) to advertisers only works properly because of the large number of customers and people around the world that it attracts. Google is also engaging another set of customers using other technology tools such as Gmail, Google Maps, Picasa, and the Android mobile platform. As a result, customers receive an ever-expanding network of interconnected Google services, which helps expand the company's reach.

 

In addition, Google has also developed Adsense so that you can increase the merchant's earnings by displaying a portion of Google ads on your site. The value proposition for Adsense clients group is to enable them to make money from their content on their website.

google structure

Thus, Google's main resource is a search platform capable of launching 3 services that bring a lot of revenue to the company (web search, advertising and third-party revenue). Thus, Google organizes itself according to the following structure:

+ Creation and maintenance of a research infrastructure;

+ Manage three main services;

+ Promote the platform to new users, content owners and advertisers.

Business Model - Netflix

 

Netflix was founded in 1998 and revolutionized the video rental industry with its All You Can Eat business model. Netflix's first business model was to create a subscription-based DVD rental company. Customer pays monthly and can stay as long as they want with one DVD and get another on their first return. At the time, this strategy was based on Amazon and eBay.

Despite having this first model from Netflix, the advantages over DVD rental stores (such as Blockbuster) were no late fees and no need to travel to the store to return the movie. All this was done on the site, the mail fetched DVDs and collected them.

Knowing the changes in technology and the advent of SmartTV, Netflix transformed the service into a new model, preventing the company from going bankrupt. In the new format, customers started watching as many movies as possible at the right time for the same monthly fee that was previously charged.

How Netflix makes money

This new model benefited both the company and the consumer. Netflix has reduced shipping, purchase, and exchange costs for DVDs, expanded its business and expanded its global presence.

Netflix is ​​currently making money with its plans, which range from the very basic (20 BRL) to the premium (30 USD), which allows users to watch Ultra HD movies and regular HD movies.

Netflix's profits are due to lower operating costs, which helps it sell widely and serve a wide range of people from different walks of life.

In addition, Netflix has created an online search engine that makes it easier for customers to find their movies by collecting data on their selections and presenting an idea of ​​a movie queue. At the same time, the company also began producing its own series, investing in exclusive content, mainly in series form. The move was also the result of the mobilization of companies competing on formats such as Netflix, which removed the same films from the Netflix catalog and only inserted them into the system itself.

 

Thus, Netflix's innovative business model has helped the company change the way it operates, surpassing its competitors (Blockbuster) and making way for service, product and content models. Netflix has produced series such as House of Cards, Orange Is the New Black, Daredevil, and others. House of Cards has won many awards such as Golden Globes and Emmy Awards.

How to create a video distribution platform

Currently, OTT is one of the most effective video distribution options. Like Netflix, the OTT platform can store, distribute and manage audiovisual content.

In other words, by developing an OTT platform, you can explore as many business opportunities as Netflix.

These platforms can be accessed through personal computers as well as mobile devices, video games and smart TVs. Additionally, they can be designed for use as subscription video feeds, customer communications, or even video courses and courses.

Using the OTT video platform, you can, for example, place any type of advertisement in your videos and exchange advertising space in the most interesting or profitable way for you or your company.

Click here to learn more about how the OTT platform works.

conclusion

These companies are showing new forms of entrepreneurship and success, so they should always be cited as role models. To give you an idea, Netflix reported $67 million in revenue in the fourth quarter of 2016, an increase of 55.8% over the same period last year. Google in the last three months of last year increased its revenue by 22%. to $26.1 billion, and net profit increased 8% to $5.3 billion.

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