FEATURES OF BUSINESS MODELS OF INTERNATIONAL DIGITAL DISTRIBUTION COMPANIES

Keywords: digital distribution, business model, digital platform, digital infrastructure, digitalization

Abstract

The purpose of the article is to determine the features of business models of international companies in the field of digital distribution. In the conditions of dynamically changing markets, companies need to demonstrate a very high ability to adapt to new conditions. One of the ways of adaptation is the improvement of business models. In order for companies to be able to implement or improve their business models in the context of digitalization, they need to adequately restructure their business processes and information systems. Let's consider examples of business models of leading representatives of digital distribution. In accordance with the set goal, the following methods of scientific research were used: system-structural, analysis and synthesis, comparative analysis, graphic. Amazon, Spotify and Netflix are cited as successful examples of international companies. Amazon Prime (video) and Amazon Kindle (books) should be considered the basis of Amazon's digital distribution business model. The streaming service Netflix earns money by selling subscriptions to its service packages with the help of content, the growth of which gradually increases the attractiveness of the service to potential customers (at the same time, the costs of campaigns to attract the audience are reduced). Spotify's business model is called Freemium and earns revenue from paid subscriptions, as well as ads placed on free accounts. Therefore, the combination of own large-scale production of a digital product and innovative marketing practices based on the analysis of large sets of data on customer preferences allows to create a new effective business model in which the offer will be directly oriented to the demand formed by consumers. This business model allows you to take advantage of the economic advantages of vertical integration, since all stages of the chain - from the decision on the production of the service to the end consumer - are controlled by one owner. The generalization of the imperatives of the formation of business models of international companies in the field of digital distribution made it possible to determine the following: strategies for the introduction of a temporary subscription (access) to the list of goods and services, the creation by the distributor of its own digital platform on which other companies can sell their digital goods and services or independent developers.

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Published
2023-04-03
How to Cite
Dubel, M. (2023). FEATURES OF BUSINESS MODELS OF INTERNATIONAL DIGITAL DISTRIBUTION COMPANIES. Taurida Scientific Herald. Series: Economics, (15), 26-35. https://doi.org/10.32782/2708-0366/2023.15.3
Section
WORLD ECONOMY AND INTERNATIONAL ECONOMIC RELATIONS