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Today we’re going to talk about how you can differentiate your business from your competition and why it’s important to build multiple revenue streams. These are two key strategies that every entrepreneur needs to understand to survive in today’s difficult business environment.
To explain these concepts, we’ll use the movie theater industry as a case study. Right now there’s a huge shift happening as theaters try to compete against video streaming companies like Netflix.
But instead of competing on content and price, theaters are trying to give moviegoers a high quality experience that they can’t get at home sitting on their couch. Theaters are upgrading their digs — from serving restaurant quality food, to providing a full bar, and also installing luxury recliners in each theater. They’re giving customers the full experience of a fancy night out.
And that’s what people expect nowadays. Content has become commoditized. You can find high quality stuff everywhere. Netflix movies are just as good as the blockbusters you see in the theater. Which means that theater-released movies aren’t as big of a draw as they used to be.
And that’s why the experience becomes important. The experience is where theaters can differentiate themselves.
Of course price is still an impediment for moviegoers, with Netflix costing only $8 a month for unlimited content and theaters costing as much as $12 per ticket, but that situation is changing with the introduction of MoviePass. For only 10 bucks a month, MoviePass allows it subscribers to see unlimited movies in any theaters they want.
Right now the company is bleeding money. But MoviePass has plans to monetize in ways other than just subscriber payments. With how fast they’re growing, their user base is prime for advertising to. The money they can make from advertising could push the company into profitability. They have a few other strategies to help monetize as well, giving them multiple revenue streams.
As entrepreneurs we can learn a lot from the changes happening in the theater industry. Make sure to watch the video above to learn key principles that can be applied to any business, no matter the industry. The lessons you’ll learn will help you avoid mistakes that could cost you tons of money in the future. Enjoy watching!