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Content distribution platforms aren't just apps on your phone—they represent fundamental shifts in how media businesses generate revenue, build audiences, and compete for attention. You're being tested on your understanding of business models, monetization strategies, audience segmentation, and competitive dynamics within the media landscape. Each platform embodies specific strategic choices about content ownership, pricing structures, and user engagement that reflect broader industry principles.
Don't just memorize which platform does what. Know why each platform chose its particular model, how they differentiate themselves in crowded markets, and what trade-offs they're making. When you can explain the strategic logic behind a freemium model versus a pure subscription play, or why a platform invests in original content versus licensing, you're thinking like a media business analyst—exactly what exam questions demand.
These platforms operate on recurring revenue models, trading upfront content investment for predictable subscriber income. The core business logic: spend heavily on exclusive content to reduce churn and justify monthly fees.
Compare: Netflix vs. Disney+—both use subscription models, but Netflix builds original IP from scratch while Disney+ monetizes decades of existing franchises. If an FRQ asks about content strategy trade-offs, this contrast illustrates the build-versus-leverage decision.
These platforms prioritize reach over direct payment, monetizing attention through advertising or converting free users to paid tiers. The strategic logic: lower barriers to entry maximize audience size, which advertisers pay to access.
Compare: YouTube vs. Spotify—both use freemium models with algorithm-driven recommendations, but YouTube relies primarily on advertising while Spotify pushes harder toward subscription conversion. This illustrates how the same model adapts to different content economics.
These platforms integrate content distribution with social networking features, prioritizing engagement, virality, and community interaction. The strategic logic: social features increase time-on-platform and generate data for hyper-targeted advertising.
Compare: TikTok vs. Instagram Reels—both feature short-form vertical video, but TikTok's algorithm favors content over creator following, while Instagram leverages existing social connections. This distinction matters for understanding platform-specific content strategy.
| Concept | Best Examples |
|---|---|
| Pure subscription (SVOD) | Netflix, Disney+, Apple TV+ |
| Freemium conversion | Spotify, Hulu |
| Ad-supported UGC | YouTube, TikTok, Facebook Watch |
| Ecosystem bundling | Amazon Prime Video, Apple TV+ |
| Franchise/IP leverage | Disney+, Amazon Prime Video |
| Social commerce | Instagram, TikTok |
| Algorithm-driven discovery | TikTok, YouTube, Spotify |
| Creator economy monetization | YouTube, TikTok, Facebook Watch |
Which two platforms best illustrate the difference between building original IP versus leveraging existing franchises, and what are the strategic trade-offs of each approach?
Identify three platforms that use algorithm-driven content discovery. How does this feature serve different business objectives for each?
Compare and contrast the freemium models of Spotify and Hulu—what user segments does each tier target, and how do their revenue mixes differ?
If an FRQ asked you to explain why a tech company might operate a streaming service at a loss, which platform would you use as your primary example and why?
Which platforms are best positioned for influencer marketing, and what features make them effective for brand partnerships targeting younger demographics?