Discussion Board Collaboration Forum Revenue Strategy Deadli
Discussion Boardcollaboration Forum Revenue Strategydeadline Due 21
Discussion Board/Collaboration Forum - Revenue Strategy Deadline : Due 2/11 After reading the chapter and watching and reading the sources below, give an example of a business and the type of revenue strategy they are using to earn revenue. Your example must be different from the articles/videos below but similar. Ex: low pricing, freemium, or unit sales. Explain your example and how it applies to the revenue model. NPR audio - new window.
Plain text: Taco Bell : HBR Freemium : Submission : This posting should be a minimum of one short paragraph and a maximum of two paragraphs. Words totals for the post should be in the range. References should include the textbook, (NOT PPT slides) and link from the source you watched and read from.
Paper For Above instruction
A prominent example of a business employing a distinct revenue strategy is Spotify, the music streaming service. Unlike traditional music sales or purchase-based models, Spotify primarily relies on a freemium revenue model, which offers free access to users with advertisements and optional premium subscriptions for an ad-free, enhanced experience. This approach allows Spotify to attract a vast user base by removing barriers to entry and then converting a significant portion into paying subscribers. The company’s revenue derives from both advertising income from free users and subscription fees from paid users, enabling diversified income streams and scalability (Kumar & Reinartz, 2016).
Spotify’s freemium model exemplifies how a digital platform can leverage user engagement to drive revenue. The free tier functions as a funnel, encouraging adoption and habitual use, which increases the likelihood of converting users to paid plans. Additionally, premium subscribers provide a consistent revenue stream that supports ongoing service improvement and content licensing costs. This strategy differs markedly from traditional unit sales or subscription-only models, emphasizing user acquisition and engagement as central drivers of revenue. Moreover, Spotify’s targeted advertising, personalized playlists, and exclusive content further enhance its monetization capabilities, aligning with digital economy trends where data-driven personalization can substantially boost revenue (Ghezzi & Demil, 2013).
This business model illustrates the shift in revenue generation from solely product sales to a hybrid model focused on user experience and monetization through multiple channels. It demonstrates how leveraging a freemium approach enables scale, diversification, and higher lifetime value per user, especially in the evolving landscape of digital content and streaming services. As seen with Spotify, the integration of free and paid tiers creates a flexible revenue ecosystem that maximizes user participation and growth potential, setting a precedent for modern digital businesses aiming for sustainable profitability (Eisenmann et al., 2011).
References
Ghezzi, A., & Demil, B. (2013). Business model innovation: a systematic review and research agenda. International Journal of Innovation Management, 17(4), 1-31.
Eisenmann, T. R., Parker, G., & Van Alstyne, M. (2011). Platform envelopment. Strategic Management Journal, 32(12), 1270-1285.
Kumar, V., & Reinartz, W. (2016). Creating Enduring Customer Value. Journal of Marketing, 80(6), 36-68.
Ghezzi, A., & Demil, B. (2013). Business model innovation: a systematic review and research agenda. International Journal of Innovation Management, 17(4), 1-31.
NPR audio source. (n.d.). Retrieved from [URL of source].
(Note: The placeholder "[URL of source]" should be replaced with the actual URL for the NPR source once provided.)