Business Model: Economic Value and Sociocultural Impact

The article examines the reasons for Netflix's economic success. It is noted that Netflix's growing popularity is an example of the processes of digitization and globalization characteristic of modern cultural industries. Among the main reasons for Netflix's economic success are an ef...

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Main Author: G. D. Paksiutov
Format: Article
Language:Russian
Published: Plekhanov Russian University of Economics 2020-05-01
Series:Вестник Российского экономического университета имени Г. В. Плеханова
Subjects:
Online Access:https://vest.rea.ru/jour/article/view/876
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author G. D. Paksiutov
author_facet G. D. Paksiutov
author_sort G. D. Paksiutov
collection DOAJ
description The article examines the reasons for Netflix's economic success. It is noted that Netflix's growing popularity is an example of the processes of digitization and globalization characteristic of modern cultural industries. Among the main reasons for Netflix's economic success are an effective automatic system of recommendations and a high degree of vertical integration – a combination of the service of all stages of the film business: from the decision to produce content to its display to final consumer. The impact of Netflix on the practice of consuming films in the digital age has been considered, noting that the automatic system of recommendations used by the service and algorithms of search optimization can pose a threat to the free choice of consumers. Netflix's success is seen in terms of the West's unsymmetrical influence on global culture. The author concludes that Netflix's model is an example of the growing commercialization of cultural industries, the commodification of culture and carries certain risks of an aesthetic and cultural nature. However, it shows economic feasibility. For minimization of the related sociocultural risks it is important to keep alive a variety of forms of cultural production and consumption – a task in which the state can play a significant role.
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institution Kabale University
issn 2413-2829
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language Russian
publishDate 2020-05-01
publisher Plekhanov Russian University of Economics
record_format Article
series Вестник Российского экономического университета имени Г. В. Плеханова
spelling doaj-art-4ef59f399cf8439fa7a8a0c6bda0922a2025-08-20T03:59:12ZrusPlekhanov Russian University of EconomicsВестник Российского экономического университета имени Г. В. Плеханова2413-28292587-92512020-05-010314515610.21686/2413-2829-2020-3-145-156725Business Model: Economic Value and Sociocultural ImpactG. D. Paksiutov0Lomonosov Moscow State UniversityThe article examines the reasons for Netflix's economic success. It is noted that Netflix's growing popularity is an example of the processes of digitization and globalization characteristic of modern cultural industries. Among the main reasons for Netflix's economic success are an effective automatic system of recommendations and a high degree of vertical integration – a combination of the service of all stages of the film business: from the decision to produce content to its display to final consumer. The impact of Netflix on the practice of consuming films in the digital age has been considered, noting that the automatic system of recommendations used by the service and algorithms of search optimization can pose a threat to the free choice of consumers. Netflix's success is seen in terms of the West's unsymmetrical influence on global culture. The author concludes that Netflix's model is an example of the growing commercialization of cultural industries, the commodification of culture and carries certain risks of an aesthetic and cultural nature. However, it shows economic feasibility. For minimization of the related sociocultural risks it is important to keep alive a variety of forms of cultural production and consumption – a task in which the state can play a significant role.https://vest.rea.ru/jour/article/view/876digitalizationglobalizationstreaming servicesfilm industrycultural industries
spellingShingle G. D. Paksiutov
Business Model: Economic Value and Sociocultural Impact
Вестник Российского экономического университета имени Г. В. Плеханова
digitalization
globalization
streaming services
film industry
cultural industries
title Business Model: Economic Value and Sociocultural Impact
title_full Business Model: Economic Value and Sociocultural Impact
title_fullStr Business Model: Economic Value and Sociocultural Impact
title_full_unstemmed Business Model: Economic Value and Sociocultural Impact
title_short Business Model: Economic Value and Sociocultural Impact
title_sort business model economic value and sociocultural impact
topic digitalization
globalization
streaming services
film industry
cultural industries
url https://vest.rea.ru/jour/article/view/876
work_keys_str_mv AT gdpaksiutov businessmodeleconomicvalueandsocioculturalimpact