Unlike conventional magazines consumers do not need to make a purchase to access the information and entertainment available. Also unlike television shows consumers are more interactive and have the ability to make choices as to what information and entertainment they want.
Business Models in Operation at Yahoo Movies
Business models are the set of guidelines that are set up and followed, to run a business and ensure profitability. An advertising business model is operating here for Yahoo Movies. (Rappa, M)
The Advertising business model works by generating revenue through selling space on their web sites to advertisers. This is the same as what is done in magazines and newspapers to help generate profit. Unlike these other forms of media however this business model used for a web site enables consumers to view the content of the site for free.
Elements of the Advertising Business Model
Provide free content on a web site through advertisements is the major element of the advertising business model. The advertisements generate revenue for the business rather than charging the consumer for visiting the site and viewing the information. (Rappa, M.)
Sites are often sponsored by related businesses; Yahoo Movies is currently featuring advertisements stating that Yahoo Movies is sponsored by seek employment and Telstra’s fetchmemovies.com.
Consumers can also register with Yahoo Movies. This enables them to tailor their visits and personalize the experience. User registration also provides demographic information to the business which can be an invaluable source of information for advertisers and marketers.
Yahoo Movies Connection to Bricks and Mortar Business
The Yahoo Movies site is inextricably connected to a bricks and mortar business and could not continue to exist with out the bricks and mortar business. (Blackwell, R. D & Stephen, K. 2001)
Consumers view movies at their local cinema that they have read about on Yahoo Movies. Consumers cannot receive the end product from the site itself.
Yahoo Movies is only one part of an industry, its role being to promote recent movies and provide consumers with the information they request before making their purchase decisions.
Important issues for Yahoo Movies
Security is an issue that needs to be closely considered by Yahoo Movies as transactions take place with consumers in return for DVD hire and movie ticket purchase. Although these transactions do not go directly to Yahoo Movies their site is a portal for them and should therefore be closely monitored to maintain credibility.
New innovations in media players also should be considered by Yahoo Movies to offer consumers the best possible footage clips and advertisements.
Timeliness and accuracy are important issues for this business. Consumers need to feel sure that the information they are receiving regarding release dates and ratings are correct as well as session times and cinema locations.
Competition is also another important issue since there are other sites available that provide similar information such as nine MSN. Local cinemas websites also offer a similar service and allow consumers to check release dates and session times and purchase tickets on line.
Yahoo Movies Customer Management
Customer relationship management is an important part of any business as it is the customers that make or break the success of a business. Yahoo Movies works to create favorable relationships with customers in a number of ways.
Site personalization is one way that consumers are made to feel welcome. By entering some details consumers can tailor their experience on the site specifically to their liking.
Free trials and special offers from advertisers on the site also provide consumers with a favorable attitude as they feel that they are being rewarded for using the site.
Consumers are also encouraged to make themselves at home and become involved in the community through movie poles discussion boards.
Yahoo Movies as a Business
The Yahoo Movies business is affordable for consumers as it is a free service. The purchase area of the site is the ticket box and this again is an affordable service as it keeps in line with regular cinema ticket prices.
Yahoo Movies provides an extremely convenient way of checking what movies are out and the times and locations they are playing. This service goes one step further than previous services such as answer machine recorded session times in that it also enables the purchase of tickets.
This online business should be relatively stable. The movie industry is firmly established in a bricks and mortar business and the internet branch of the business is working as a part of the entire industry rather than a stand alone business. The business also offers a sort after service (movie session times and locations).
In cities movies are a readily available service. The internet provides an easy access convenient service to accompany this and provide consumers with information to enhance their movie consumption.
Threats Confronting Yahoo Movies
The Yahoo Movies business has the threat of competition. There are numerous websites available that provide the same service as the one in question. There is also competition in terms of technology both new and old. Some consumers prefer to simply telephone their local cinema to find out what is showing and purchase tickets at the bricks and mortar box office. Also new technology such as session times on your mobile phone are creating new ways possibly more convenient ways of performing the same service.
The Yahoo Movies business appeals to a wide market section. A large majority of the population watches movies and visiting cinemas is a poplar past time. Reading news and reviews on latest movies is also a popular form of entertainment. Also being part of yahoo provides the business with an added market appeal as this is a commonly used web and quite often used as a home page. These factors help to reduce the threat of competition.
Yahoo Movies has an ongoing product life as new movies are constantly being released. This however means that the business needs to constantly update the information provided and ensure that the correct information is available at all times.
Reference list
Blackwell, R. D & Stephen, K. (2001) Customers rule: why the e-commerce honeymoon is over and where winning businesses are going from here. New York: Crown Business.
Rappa, M. Managing the digital enterprise: Business models. Retrieved: August 20, 2004, from:
Schwarz, E. I. (1997) Webonomics: Nine essential principles for growing your business on the World Wide Web. New York: Broadway books.
Yahoo Movies. Retrieved: August 19, 2004, From: http://au.movies.yahoo.com
