Management 265
Introduction to E-Commerce
                Nicholas A. Davis
                  Session Two
                   09/22/2009
Auctions
• Fixed pricing – National price
• Trigger pricing – Based on consumer
  location
• Personalization pricing – based on how
  much a user values a product
• Consumer to Consumer – Auction house is
  an intermediary
• Business to Consumer – Auction house
  sells items it controls
Rise and Fall of Ebay
• Started as a comic book exchange marketplace
• Moved to allow consumers to sell all kinds of
  items
• Moved to allow business to sell all kinds of items
• Bulk sellers get more benefit
• Small person being squeezed more
• Threat of Craigslist
• Vonage acquisition and sale
Differences
• Auctions
• Portals
• Online Communities
Intellectual Property and
          Digital Media
• What is intellectual property?
• Does it have the same value as physical
  property?
• How do you accurately judge the value of
  IP?
• Case Scenario, Nick never buys a CD, but
  loves music. Nick gets Napster and
  downloads 5000 songs he likes, but would
  never buy. What damage has been
  caused to the copyright owner?
Intellectual Property and
          Digital Media
• John regularly buys CDs. John gets
  Napster and downloads 5000 songs. What
  type of damage has been done?
• Should Nick and John be treated differently
  based on the fact that a different amount of
  damage has been done to the copyright
  holder, based on Nick and John’s shopping
  habits?
• Ethically speaking, what are the major
  issues here?
Online Content Revenue
            Models
• Marketing Tide.com
• Free content drives offline revenues
• May work for strong brands, or niche
  products, designed to enrich customer
  experience
Online Content revenue
           Models
• Advertising Yahoo
• Free content is paid for by online
  advertising
• Depends on growth in online ad volume
  and rates, as well as audience size
Online Content revenue
           Models
• Pay Per View / Pay Per Download
• Charge for premium content is a la carte
• Opportunities for unbundling digital
  products, work best with something like an
  MP3 player
Online Content revenue
           Models
• Subscription: Rhapsody
• Monthly charges for unlimited service
• This is the leading model (80%), very
  popular with high value products
Online Content revenue
           Models
• Mixed MSN
• Combination of all models
• Market segmentation opportunities make
  this a popular model, charging for some
  services, and providing others for free
Future trends in E-Commerce
• Anywhere availability of purchased content
• Intelligent outposts (Soda Machines)
• New payment methods (phones)
Additional Concerns

Intellectual property and digital media nicholas davis

  • 1.
    Management 265 Introduction toE-Commerce Nicholas A. Davis Session Two 09/22/2009
  • 2.
    Auctions • Fixed pricing– National price • Trigger pricing – Based on consumer location • Personalization pricing – based on how much a user values a product • Consumer to Consumer – Auction house is an intermediary • Business to Consumer – Auction house sells items it controls
  • 3.
    Rise and Fallof Ebay • Started as a comic book exchange marketplace • Moved to allow consumers to sell all kinds of items • Moved to allow business to sell all kinds of items • Bulk sellers get more benefit • Small person being squeezed more • Threat of Craigslist • Vonage acquisition and sale
  • 4.
  • 5.
    Intellectual Property and Digital Media • What is intellectual property? • Does it have the same value as physical property? • How do you accurately judge the value of IP? • Case Scenario, Nick never buys a CD, but loves music. Nick gets Napster and downloads 5000 songs he likes, but would never buy. What damage has been caused to the copyright owner?
  • 6.
    Intellectual Property and Digital Media • John regularly buys CDs. John gets Napster and downloads 5000 songs. What type of damage has been done? • Should Nick and John be treated differently based on the fact that a different amount of damage has been done to the copyright holder, based on Nick and John’s shopping habits? • Ethically speaking, what are the major issues here?
  • 7.
    Online Content Revenue Models • Marketing Tide.com • Free content drives offline revenues • May work for strong brands, or niche products, designed to enrich customer experience
  • 8.
    Online Content revenue Models • Advertising Yahoo • Free content is paid for by online advertising • Depends on growth in online ad volume and rates, as well as audience size
  • 9.
    Online Content revenue Models • Pay Per View / Pay Per Download • Charge for premium content is a la carte • Opportunities for unbundling digital products, work best with something like an MP3 player
  • 10.
    Online Content revenue Models • Subscription: Rhapsody • Monthly charges for unlimited service • This is the leading model (80%), very popular with high value products
  • 11.
    Online Content revenue Models • Mixed MSN • Combination of all models • Market segmentation opportunities make this a popular model, charging for some services, and providing others for free
  • 12.
    Future trends inE-Commerce • Anywhere availability of purchased content • Intelligent outposts (Soda Machines) • New payment methods (phones)
  • 13.