FROZEN

When viewers first go onto the website, it has an image of the main characters. On the left side it allows the audience to watch the tailer, and underneath the image it tells the audience that the movie is now out in cinemas. At the top of the image, it has different links which allows the audience to watch other video's, view characters, gallery, activities and games and apps. This lets the audience engage with the movie.

If you scroll down it gives the audiences extra information about the movie that they may not have known. In the right side, it also has links to Facebook, Twitter and Youtube, so the audience can follow their social networking sites.

Underneath the information, again, it has the same links as the website does at the top to allow the audience interact and engage with the film and get a better understanding, for example, the if someone has not yet seen the film they can click on 'Characters' and choose a character which gives them an insight of their role in the movie. It also has Frozen games/ related games that people can buy e.g. Olaf's Quest and Disney Infinity . This is further advertising their film to make it more successful. 

This is their App. It shows that 47k people already like this app. And the reviews show that 40,764 people rated it a 5 star app. The app also gives a link to the disney website.

What is the changing business model being described?
What opportunities and threats are offered by this model?

http://www.thewire.com/technology/2013/02/economics-netflixs-100-million-new-show/61692/

Netflix plan on turning into HBO of internet TV by creating a new production - House Of Cards and 5 new shows like that per year. Even though they will be paying $100 million for every two of 13 episode seasons. This means that if the shows are successful enough, then spending $100 million will not be a problem, and could infact be good for business for the company.

To break even, Netflix need 520,834 subscribers paying $7.99 per month for two years. To do that 5 times every year, Netflix would have to sign up 2.6 million more subscribers than they would have. Netflix currently have 33.3 million subscribers, this is an increase on less than 10% of what they need. However, it could still work, because looking at past growth for the company, which saw 65 percent growth from 20 million to over 33 million world-wide streaming customers. Last year, in the U.S alone, it saw 13% growth, jumping from  24 million subscribers to 27 million subscibers.

HBO gets about $7 per month, but splits it 50-50 between cable, so all together people are paying around $15 per month which is around the same as Netflix. Those revenues also pay for some of the most expensive TV on cable: True Blood came in at around $5 million per episode. The debut of Boardwalk Empire cost $20 million alone.

The problem with netflix is that their revenue is not growing as fast as their content costs.  This is because companies know they have power over Netflix because Netflix need those companies permission so people can stream from them, so the other companies are constantly increasing their costs. Netflix are overpaying Disney and Epix for streaming rights for their movies and TV shows, they are now paying $100s of millions to Disney and Epix.The table shows the deals that Netflix are paying which costs them billions.