What are you selling today?
Interplay of Content and Commerce on platforms
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DTW
During the Week, Amazon acquired MGM Studios. And Amul brought out one more of its quirky but topical campaign around the deal.
The MGM library is coveted—with over 4,000 film titles including James Bond franchise. Of course, at 8.45 Billion Dollars this would be loose change for the 2 trillion dollar market cap Amazon but it sends a strong signal about the importance of content for e-commerce platform like Amazon. Jeff Bezos was famously quoted earlier explaining Amazon’s interest in content through Amazon Prime.
"We get to monetize [our subscription video] in a very unusual way," Bezos explained. "When we win a Golden Globe, it helps us sell more shoes.
Jeff Bezos, Vox's Code Conference, 2016
Of course, traditional media giants are not going to get run over by streaming platforms without giving a good fight. Last week, AT&T spun off Warner Media and then a merger with Discovery was announced at 43 Billion Dollars thus creating a media competitor at scale and depth.
I had earlier written about Music and Platform relationship. Similarly , content and commerce could be understood through multiple sides of platform businesses- Creators, Aggregators, Audience and Businesses.
Imagine the “fit" between the TVF series Aspirants based on UPSC aspirants and its sponsor Unacademy which is a major player in coaching for multiple competitive examinations including UPSC.
In fact, almost all the web-series especially those streaming on YouTube depend on matching the content or at least some context for brands to showcase a use case scenario.
In an earlier newsletter on Reliance Jio Platform, I had hypothesised that Jio may be able to help RIL reach a Trillion Dollar valuation if they could crack the Brand Solutions through a Engaging Content Embedded Vertical Integration Strategy promised by an energetic and Likeable Leader. The key message was the interplay of content, commerce and carriage.
On the other hand, Instagram had announced a partnership with Swiggy and Zomato to order discovery and spur engagement. This brings in the Influencers back in picture and also emphasise on the social nature of food. That brings me to leveraging community for food ! Food joints have to create experiences around community and belongings to make it worthwhile for patrons to visit them.
I think that going forward major brands will develop content creation as a core competency, and content creators would step up to develop retail operations as a core competency.
OTW
Over the Weekend, I volunteered at a mega Covid19 vaccination drive at PBEL City to vaccinate residents, support staff (community and household) as well as close friends of residents. It was a fulfilling weekend as the team did more than 2000 vaccinations for residents and extended PBEL Family.
Our Resident Welfare Association (PCOA) signed a MoU with Aster Hospitals to set up a community vaccination centre on our premises after receiving regulatory approvals from health department.
I am always amazed by the spirit of volunteerism in PBEL City and how the residents band together for community events including our won PeeranCheruvu Runners Anniversary Run where we host about 1000 runners on first Sunday of December. This entire vaccination drive was managed by team of volunteers led by Ankur Angrish, General Secretary of PCOA while the medical support was ably handled by Aster Prime Hospital team led by their CEO Devanand Kolothodi - PBEL City resident and of course an aspiring runner.
Would be glad to hear about your vaccination and/or volunteering experiences.
Get Vaccinated ASAP. Do share the vaccination pictures or confirmation messages.
Stay Safe.
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Shailendra
Very insightful article, sir. I also read about Amazon acquiring MGM, and I've developed few insights as to why it has done that. The fact that MGM is an iconic Hollywood studio with a huge pool of content can't let us ignore that it has now lost its appeal. Amazon did make use of this opportunity to all the more expand its content library, obviously to fight its prominent competitors like Netflix. I also learnt how Amazon has been inducing customer loyalty by Amazon prime membership. So, through that its not just selling products but also Content, simultaneously!
Also, kudos to your efforts on volunteering at the Covid 19 vaccination drive! Inspiring for all of us.
But Sir Instagram had this sort of partnership with Swiggy and Zomato from last year itself if you remember in one of the Quick Take Session, I had presented how Instagram is using a sticker as an effective tool where they are allowing the restaurants to redirect the users to either Zomato or Swiggy platform according to the user choice once he gets after clicking on the sticker.
However, what my observation has been it wasn't a success. Swiggy's issue with their delivery partners and Zomato's decision to covert Gold into Pro was a major driving force behind the failure plus the influencers were not interested in promoting restaurants reason being their image of having a fit and healthy life in front of their fans.