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Business models in strategic management
Business models in strategic management

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3.3 Content provider

Content providers are distributors of online content, such as news, music, videos, games and artwork, and are important players in the online scene. Digital media (video games, video-on-demand, ePublishing and digital music) is a growing market worth $129 billion, with a growth projection to 156.8 billion US$ in 2023 (Statista, 2019). Europe is the third largest digital media market following the US and China, but is the fastest growing. Video games are by far the largest segment of the market.

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Not all content providers ask for subscription fees: some get money from advertising or from partner promotions on websites and apps.

Content is the critical asset required to have a competitive advantage: publishers, movie studios and video game companies control valuable assets that are difficult to imitate and very expensive to recreate. For example, the control of Marvel by the Walt Disney Company allows for the creation of movies and TV series with heroes of the Marvel Cinematic Universe, such as Captain America, Black Widow, Ironman, Thor and Scarlet Witch, who all also appear in the Avengers movies.

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