1. 1 Chapter 6 Business Model III: Internet Content Provider

2. 2 What are Internet Content Providers? zContent:something expressed through some medium, such as speech, writing, or a work of art. zWe consume offline content through a range of media, including printed books, magazines, and newspapers, broadcast television and radio programs and music CDs. zOnline content can be consumed over a network, using desktop and laptop computers, cell phones, PDAs, TV set-top converter boxes, or other digital devices.

3. 3 What are Internet Content Providers?(con’t.) zInternet content providers (ICPs) are companies engaged principally in the delivery to consumer and business users of professionally-produced, copyrighted content. zContent professionally produced vs user- generated content

4. 4 Content Categories zAsk how and why the content will be used yNews yInformation yentertainment zAsk how long the content will be consumed yNews yInformation yEntertainment zAsk how one pays to receive it yIndirectly yUpon each use yThrough outright purchase yBy subscription

5. 5 ICP’s Value Construction zProduce once and then distribute widely zICPs are available at any time of the day from any place with network access. zThe sheer amount of information that can be accessed online dwarfs the capacity of any offline medium. zA website can remember a user’s preferences and thereby tailor an experience to his or her personal needs.

6. 6 ICP’s Value Construction (con’t.) zICPs can unbundle different types of content that historically had been aggregated into a single offline media product. zConsumers can benefit from the networking capabilities of online content providers. zICPs can create value for consumers---albeit illegally---from the costless copying of copyrighted materials.

7. 7 ICP’s Financial Model yRevenue sources xSelling advertisements xCharging users directly for content xLicensing their content to other websites yCost structure xOperational cost Content development Website development Sales General and administrative expenses yProfitability