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Nowadays, you can watch anything from a talk show to a tutorial online for free. Professor Shijie Lu with the Bauer College of Business at the University of Houston talks about how livestreaming platforms can monetize this new kind of media.
“Free livestream content is booming online, and that means that businesses must adapt to new monetizing methods. Most peer-to-peer livestreaming events are free to watch, but rely on viewers to voluntarily tip the broadcaster to generate revenue, called ‘pay-what-you-want pricing.'”
“Livestreaming and social media firms must leverage what motivates viewers to tip, often to improve their social images in front of other viewers. But, because ‘pay-what-you-want’ does not scale as quickly as other monetization methods, firms should diversify with options like traditional advertising and subscriptions.”
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