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Home » The business model of online streaming platforms – Saivian Eric Dalius

The business model of online streaming platforms – Saivian Eric Dalius

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Saivian Eric Dalius

A business model describes the rationale of how an organization creates, delivers, and captures value. Streaming platforms host large amounts of audio-visual content online for free says Saivian Eric Dalius. The streaming platform has become highly popular due to the growing penetration of smartphone devices that can connect to high-speed internet access. While this is a new method that no other companies have yet to embrace on such a scale, it raises some questions about what this new service is worth? And how do these streaming platforms make money?

The basic idea behind most media portals like YouTube or Spotify is that they make their revenue by using advertisements (pre-, during, or post-video playback), usually embedded into the clip itself. In return, users do not need to pay to use the site says Saivian Eric Dalius. For a media portal to function, it must acquire content from many different artists/companies that all have different rights and responsibilities with regards to their work.

Many streaming sites, such as Spotify or Pandora. Allow listeners to pick specific songs they want to hear by entering the song name in a search bar. If a user does not know exactly which song he wants but knows particular attributes about the desired song (such as title or artist). Most services will include those options.

What are the programming involves – Saivian Eric Dalius

This is called “canned” searching because it is preprogrammed into the site’s database and is not relative information relative to users’ preferences. As personalized searching would be. Users can also select a radio option that will play songs similar to the song they selected, known as “radio” streaming. These two methods of searching for songs do not require any personal information to be entered.

Other services such as Spotify ask listeners to complete a quiz about their music preferences to get more personalized results. This type of searching is called personalized because it requires listening and rating preference information. Personalized searches often provide recommended tracks within the same playlist or album as the song requested by the user. Users may also save these search results and share them with others.

Advertisement Aspects – Saivian Eric Dalius

Still, some streaming sites place advertisements on saved playlists and albums to recover some of their lost revenue from subscriptions. Since users who create playlists or albums do not have to maintain a paid account to have their custom content. In addition, many streaming services offer offline listening where users can save music onto their mobile devices for playback. At a later time when they’re unable to connect to the internet.


In terms of how streaming sites make money, advertising is vital. Users can search for songs and artists by using specific keywords/keyphrases, leading them through “targeting” by brands. Since these sites use tracking methods to gain information about their users’ preferences. This targeted audience creates value that can be sold directly or indirectly by the streaming media platform itself. Or third-party organizations that purchase ad space on the site’s pages.