Remove Advertising Remove Cash Flow Remove Efficiency
article thumbnail

Economies of Scope - Tom Spencer consulting blog

Tom Spencer

Marketing – The cost of advertising can be shared across products. Distribution – Shipping a range of products is more efficient than shipping a single product. More stable cash flows are attractive for three reasons. For example, Amazon sells an extremely broad range of products.

Cash Flow 117
article thumbnail

Subscription Business Models Are Great for Some Businesses and Terrible for Others

Harvard Business

Today, streaming is a more efficient way for me to access professionally created video content, and Netflix provides me with streaming. I joined Netflix for access to great content in an efficient way. But when those people send out their surveys, they are advertising for SurveyMonkey to everyone who receives the survey.

article thumbnail

A Blueprint for Digital Companies’ Financial Reporting

Harvard Business

However, the real revenue-providing customers are companies that pay for advertisements (they may be called “revenue units”). Yet, we believe that the benefits of disclosures, particularly in improving the efficiency of capital allocation in the markets, outweigh their costs.