In Alexandra Skarsgard’s blog she writes about the new approach Harper Collins has taken towards maintaining its sales channels. The simplicity of purchasing books through online companies such as Amazon, eBay and Alibaba creates an advantage for consumers. However, for companies such as Harper Collins, there are risks associated with relying on such companies. For this reason Harper Collins has decided to sell directly to customers through their own website.
Similar to Harper Collins, HBO has recently decided to launch their own streaming service, providing an outlet for which customers can watch HBO shows without having to pay for cable packages. This strategy targets the 10 million people in the US that have internet connection but no pay-television service. As companies such as Netflix, Amazon and Hulu have been increasing in popularity it has become easier for consumers to stop paying for rising TV bills and instead stream shows online. With the development of these sites, it is no surprise that HBO has decided to stream their own shows online, potentially creating millions of dollars in additional revenue for the company.
By providing to their consumers directly, both Harper Collins and HBO are creating the potential to expand their target audience. As advances in technology continue, it will likely become more common for companies to follow in their footsteps. In the meantime, many companies will stand by and observe the success this strategy brings to Harper Collins and HBO, before deciding on implementing it themselves.
Sources:
https://blogs.ubc.ca/alexandraskarsgard/2014/10/05/going-the-distance/
http://online.wsj.com/articles/hbo-to-launch-standalone-streaming-service-1413385733
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