What Small Businesses Can Learn from the Rise of Digital Entertainment Platforms
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The internet has opened up a lot of opportunities for young entrepreneurs. Online markets are more likely to succeed today than ever before. Improvements in technology play a huge role in the success of digital markets.
It also has a lot to do with people’s willingness to take a risk on a digital platform. Digital transformation has given businesses a new perspective. Innovation and customer engagement are key factors to success.
Online markets are especially influential on small businesses. The tactics used by digital markets are often very useful for start-ups. That is why entrepreneurs and up-and-comers need to know what they can learn, and from whom.
In this article, we are tackling the relationship between small businesses and the rising success of digital entertainment platforms. Though games like Rainbow Riches have made online casinos millions, it is important to remember that at one point, they too were considered underdogs fighting against the grain. Learning from the past is a good way to advance in the future.
Consistent Customer Interaction
Consistent interaction greatly contributes to the success of an online business. People know who Brad Pitt is. Many enjoy his films. But not a lot of his fans have a personal relationship with the actor. There is a higher chance that fans of a YouTuber will be more passionate in engaging with their content.
That is because of the power of social media. Those running digital entertainment businesses are more likely to engage with fans personally.
There is no way for a big business to address the concerns of every fan they come across. That is why they often answer blanket questions about their products in FAQ formats. However, a small business often does not have the same excuse.
What is more, they shouldn’t be looking for such an excuse in the first place. A business that builds on user interaction and customer satisfaction will almost always have satisfied and loyal customers.
One must be careful to avoid falling on their own sword. Often, satisfying customers is a simple matter of answering their concerns. However, at times, there are those customers who are being difficult only for the sake of it. Online “trolling” has grown into quite an epidemic beyond online spaces.
Some small businesses may go overboard in an attempt to please such a customer. It is important to choose your battles. That is another thing that entrepreneurs can learn from online creators and digital entertainment platforms.
Marketing is a Hard Balance
Marketing is one of the most important aspects of a business. Big companies have no issue with marketing, because more often than not they have an immense budget. However, small businesses must get creative and master the art of the marketing plan.
It is hard to know exactly what customers want out of marketing. It is even more complicated to learn what they are willing to tolerate. The truth is that it all depends on how interested they are in the product being consumed.
The triumph of Netflix was that it managed to replace cable television. Not only did it make access to entertainment easier for many, but it also promised television and film experiences without any advertisement.
On that premise alone, Netflix became one of the most successful companies of the 21st century. Fans were naturally upset when the team behind the company announced that advertisements would be coming to the platform.
There is an important lesson that any entrepreneur can learn from the Netflix debacle. A marketing team must always look towards the future. Not just a few years from today, but decades if necessary. We obviously know that fans are willing to put up with advertisements in their content.
YouTube and Twitch both have successful platforms with millions of watchers, yet content creators run ads on their videos. The issue is that Netflix promised an escape from advertisements, only to introduce them once they’ve established a loyal following. Naturally, customers felt betrayed.
Data-driven Decision Can Help
We often mock content for being “by the numbers.” The phrase refers to films or television shows that seem tailor made to please the maximum amount of people. Inoffensive content is often ridiculed. Yet, it also tends to be incredibly popular.
That is because a lot of the companies behind this content rely on analytics. The data shows what most people would be likely to engage with, or what would resonate with a bigger crowd. The problem is that the desires of the crowd are quite fickle.
We need look no further than YouTubers for an example. The saying goes that a successful YouTuber has a five-year-lifespan. It apparently takes half-a-decade for the tastes of the YouTube audience to completely shift. Big YouTubers are then left looking to fill a gap in order to maintain a certain lifestyle. The reason that they must do this is because they likely relied on the same data-driven business policy as companies like Netflix or Spotify.
The difference is that Netflix and Spotify can easily change the content that they provide. These are streaming sites. With YouTubers that is not the case. Neither is it the case with many small businesses.
We are absolutely not saying that newly-established entrepreneurs should avoid data-driven decision making. In fact, we would encourage many to pay close attention to what analytics say. However, we would also recommend knowing what the risks of such an approach to business are.
Some Closing Statements
It is both the easiest and most difficult time to operate a small business. The internet has given us so many tools to get started. However, it has also opened many young entrepreneurs to a competition that should only be reserved for experts.
It isn’t necessarily those that bring the best or most innovative product that will come out on top. Those who will manage to rise above the rest are going to be the ones who are willing to learn from the mistakes of others and persevere through some of the most brutal hardships.
