- 1. Ruohonen, Jukka, and Hyrynsalmi, Sami. “Evaluating the Use of Internet Search Volumes for Time Series Modeling of Sales in the Video Game Industry.” Electronic Markets, vol. 27, no. 4, 2017, pp. 351–370.
Keywords
electronic word-of-mouth (EWOM), diffusion, proxies, Christmas effect
Summary
In this scholarly journal article, Ruohonen and Hyrynsalmi discuss the empirical evidence found in the search volume of video games. They were able to find correlations between search results and video game sales. Their main point revolves around the idea of electronic word-of-mouth, which is enabled by the internet. Using this basis, they found the pattern of an S-shaped curve in the diffusion of video games. The S-shaped curve is generally used to describe the life cycle of products, including video games. In the beginning there is quick growth, then over time it begins to slow down until it stagnates, creating the S-shape.
The article also contains explanations of how the data is found and read. It includes the methods and models Ruohonen and Hyrynsalmi used to get their findings. In the end, they concluded that sites like Google was a factor in the EWOM effect but is only incremental. That doesn’t mean it plays no role in the video game industry, but the video game industry does have distinct characteristics that helps it. To see just how much the internet plays a role in internet and business, research needs to be done on other industries to compare.
Reflection
This article is very useful in explaining how the video game industry was able to take off along with the growth of the internet. The information was thoroughly explained using graphs and explanations of the methodology used to gather the information. That helps to understand the data better, as we can read the numbers the way the researchers intend it to be interpreted. It also makes it easier to help me explain the points brought up in my research paper.
I’ll be using this article to support my points on how video games were able to become a popular form of entertainment. The main point from this article that I’ll be using to support my point is the EWOM effect. EWOM was enabled by the existence of the internet as an extension to word-of-mouth (WOM). In comparison to WOM, EWOM occurs more easily because of the accessibility of the internet. With that, talks about a certain topic, in this case video games, can spread much more easily than previous times.
Quotables
“In terms of EWOM itself, the video game industry is particularly relevant due to the active and predominantly Internet-based gaming community (Jockel et al. ¨ 2008).” (353)
“In essence, products are assumed to live through different theoretical stages, such as introduction, momentum, maturity, and the eventual decay.” (353)
Thus, on the other hand, past sales may affect, either positively or negatively, the present EWOM volume of a game due to consumers’ increased knowledge about the video game (Situmeang et al. 2014). (355)
“While weekly sampling frequency has been the “state of the art” in Internet search volume modeling (Drake et al. 2012), it may be that the purchasing dynamics are more fine-grained particularly in the video game industry.” (366)
“For studying diffusion among consumers, whether via purchases or EWOM, the existing aggregation sites, social media platforms such as Twitter or YouTube, and related sources seem more prolific than aggregated and indexed time series on Internet searches. Many of these sources would further enable the use of social network analysis for studying the actual human behavior underneath the EWOM concept.” (368)
Borrowed Sources
Drake, M.S., Roulstone, D.T., & Thornock, J.R. (2012). Investor information demand: evidence from google searches around earnings announcements. Journal of Accounting Research, 50(4), 1001– 1040.
Jockel, S., Will, A., & Schwarzer, F. (2008). Participatory media culture and digital online distribution – reconfiguring the value chain in the computer game industry. International Journal on Media Management, 10(3), 102–111.
Situmeang, F.B., Leenders, M.A., & Wijnberg, N.M. (2014). History matters: the impact of reviews and sales of earlier versions of a product on consumer and expert reviews of new editions. European Management Journal, 31(1), 73–83.
2. Ollier, Peter. “Why the Internet Has Killed Entertainment’s Business Model.” Managing Intellectual Property, 2009, pp. Managing Intellectual Property, Feb. 2009.
Keywords
business model, commoditized, web-based platform
Summary
In this article, Ollier talks about the “consumer-led rebellion” against the business models of selling books, films, and music. He cites Andrew Keen, a former Silicon Valley entrepreneur, on how the internet has created a culture where people feel that they have the right to get content for free online, which means “creativity is commoditized”. The entertainment industry has become less about the product itself and more of the brand. The focus is more geared toward the platforms that can provide the product to the consumer, such as YouTube. Because of that, the business models focusing on the individual product struggles to survive since the internet provides the means to obtain virtually anything.
Reflection
Despite this article being somewhat short, it contains a lot of insight on how business models around certain entertainment forms have changed. It specifically talks about books, film, and music as the main forms that were affected by the internet. This article mostly cites another credible source but summarizes it well enough to get the gist of what the source states.
I’ll be using the points made on how the internet has created an environment where certain business models can no longer survive in. Those points will help show how the internet has caused certain entertainment to decline. It explains through the decline of the business models, where people are less likely to look to that form of entertainment for entertainment. Since the internet has the ability to essentially mass produce physical versions of book, films, and music, those forms of entertainment have been largely affected by the internet.
Quotables
“the internet ‘has made the protection of the copy impossible.’” (1)
“This means that the entertainment industry’s business model of charging people to buy what they can download online for free ‘is essentially dead already.’” (3)
“He saw this role not in protecting the books or films themselves, but in protecting the brand identity of the platforms that provide them to consumers” (4)
Borrowed Sources
Keen, Andrew. The Cult of the Amateur: How Today’s Internet Is Killing Our Culture, Currency, 2007.
3. McDonald, Kevin, and Smith-Rowsey, Daniel. The Netflix Effect: Technology and Entertainment in the 21st Century. 1st ed., 2016.
Keywords
multisystem operators (MSOs), Long Tail markets, binge-watching
Summary
In this book, McDonald and Smith-Rowsey talk about the influence Netflix has had on technology, entertainment, and business. Each chapter brings up a specific topic relating to Netflix and how that certain topic resulted from Netflix. Chapter 13, in particular, talks about how Netflix was able to overcome the changes in the entertainment industry. Netflix was one of the first to embrace new technologies that resulted from the internet, and as a result was able to thrive off that fact other companies struggled to do so. The chapter compares former competitor, Blockbuster, to Netflix to show how Netflix was able to overcome the hurdle Blockbuster failed to overcome. The chapter continues to talk about Netflix’s current problems and competitors that have a specific identity. Networks like MTV, CNN, and ESPN all have their own identity on what they provide. Netflix, however, is simply a streaming platform that doesn’t have its own brand. Having a niched focus allows companies to show their value through their ability to show appeal toward their product. Netflix doesn’t have this aspect to differentiate itself, as it doesn’t have defining features that target a certain group. Despite this, Netflix has certainly had its influence in recent times due to their successful business model.
Reflection
This book contains a lot of information on how Netflix has had a large influence in today’s society. I currently only read one chapter, but there are more chapters that I may want to read for more information pertaining to the extent of Netflix’s impact, since the chapter I read mainly focuses on how Netflix was able to adapt to the changes in the entertainment industry. Also looking at some of the chapter titles, there may also be some chapters that talk about other topics outside of Netflix, which may help support some of my other points in my research paper.
With the current information I have, I’ll be using the findings from this book to support my points on Netflix being one of the forms of entertainment that managed to maintain itself even after the internet. The chapter I read goes into detail about what aspects Netflix was able to use to beat out its old competitors like Blockbuster, as well as keep up with current competitors within the entertainment industry. This Netflix example may also be useful in explaining why some other form of entertainment has declined. Since the book focuses on the effects of Netflix, there is likely to be a chapter on how Netflix has changed the industry, essentially pushing out certain forms of entertainment, which can help support some of my points about declines because of the internet.
Quotables
“Netflix remains an outlier within the media and entertainment industry, and intermediary that succeeded precisely because of the major conglomerates’ inability to negotiate the transition from DVD to digital on demand.” (204)
“While the concept [Long Tail economics] is fairly imprecise, it quickly became a staple of twenty-first-century business terminology and continues to evoke the dramatic changes that took place as digital technologies reshaped the economics of entertainment.” (205)
“This idea of internet TV is often promoted as part of Netflix’s technological advantage—its ability to escape the restrictive confines of linear television and empower viewers to watch what they want when they want.” (211)
“In 2011, Netflix surpassed 20 million subscribers. In doing so, it recognized that its business model was maturing and that domestic growth would begin to slow.” (212)
“Netflix has been adept in navigating these circumstances, evolving its business model and building a bran identity as internet TV.” (215)
“In the case that this demand should ever dwindle, Netflix is well versed in fortifting demand with its own algorithmic machinations. More generally, the future of media and entertainment will remain bright so long as such things can be tethered to the various profit-engines that serve existing global economic interests.” (215)
Borrowed Sources
Paul McDonald, Video and DVD Industries (London: BFI, 2007), 115.
4. Anderson, Monica & Smith, Aaron. “Social Media Use in 2018.” Pew Research Center, Mar. 2018, http://www.pewinternet.org/2018/03/01/social-media-use-in-2018/
Keywords
platform
Summary
In this research report, Anderson and Smith lay out the numbers of social media usage overall and per social media site. The overall consensus is that Facebook and YouTube primarily dominate the social media landscape. They have plenty of data to show the prevalence of social media overtime. Some of their data beings from 2012 to 2018, showing the change over time on social media usage. Results also show that primary users are young adults out of those surveyed. Within each group, social media site preferences were different despite Facebook and YouTube being the dominant platforms. The focus of the research is based on a broad view on social media, looking into the users and their interactions within social media.
Reflection
This research report is very helpful in giving concrete numbers of social media usages. They have insightful data about the landscape of social media on the number of users on social media. Some of the points show a lot about current usage of social media and what that tells about the users. One finding that stands out is the data on who were willing to give up social media. That information is interesting because about 40% of all surveyed said giving up social media would be hard. Although not the majority, that is a large chunk of people who seemingly rely on social media.
This information can be helpful in showing how widespread social media is. Most of the data supports the idea that social media is still growing, with greater amounts of older people joining on the already huge number of younger users. The data is accompanied with charts or graphs, which show a visual representation of the data. That can help to explain the changes of social media over time easier, given the fact that social media is a relatively new phenomenon.
Quotables
“At the same time, there are pronounced differences in the use of various social media platforms within the young adult population as well. Americans ages 18 to 24 are substantially more likely to use platforms such as Snapchat, Instagram and Twitter even when compared with those in their mid- to late-20s.”
“Roughly three-quarters of the public (73%) uses more than one of the eight platforms measured in this survey, and the typical (median) American uses three of these sites. As might be expected, younger adults tend to use a greater variety of social media platforms.”
Borrowed Sources
N/A