Platform Mediated Networks – KINDLE VS BLENDLE

Technology of the Week- Group 39

For the technology of the week, our team (Team 39) decided to compare two players that are examples of platform mediated networks- Amazon Kindle and Blendle. In our two cases, Amazon Kindle and Blendle, we have two distinct groups i.e. the readers and the publishers.

E-book platform Amazon: KINDLE 

The Kindle was first introduced by Amazon Inc. in 2007 and changed the way people read books, newspapers and other written work. A Kindle is an e-reader that allows a user to read published work on a small and easy to use handheld device. The Kindle platform is a perfect example of a so-called two-sided market, connecting readers to publishers

Media platform: BLENDLE

Blendle is a Dutch news aggregator, a combination of a newsstand and social media, where people pay for articles from newspapers and magazines. As a two-sided market, Blendle connects journalists with the readers. Users can then buy articles on the website with the use of an online wallet and read those articles on their desktop, laptop, tablet or smartphone. It is also possible to share articles, comment on them and ‘like’ other user’s comments, as with Facebook and other social media.

KINDLE vs BLENDLE 

Two-Sided Market: While Kindle connects users of books to publishers, Blendle connects readers to journalists and newspaper publishers.

Revenue: Users pay a fixed price to buy the reader device to access Amazon’s online platform, but it can also be accessed via mobile devices. Users pay a small price for each book that they buy in the online shop. Amazon receives a commission on each sold item. For Blendle Users can register and then buy articles on the website with the use of an online wallet and read those articles on their desktop, laptop, tablet or smartphone. To pay for articles, users can transfer money via iDeal, credit card or PayPal to their online Blendle wallet.

Advantages:  Kindle allows users to find and read books they like on a small piece of technology. Customer is able to store many titles on the reader and take them on the go. Good use during holidays. Publisher can easily distribute a new title and reach a large audience. In Blendle, Users can register through their Facebook account, share articles, and comment on them and ‘like’ other user’s comments. Blendle users also get refund for articles they do not like.

Limitations: Kindle does not allow re-sell or to pass along the book that a customer has bought. For Blendle the limitation is that they offer content only in Dutch.

Conclusion:

The likes of platform mediated networks have experienced huge growth in the past decade due to increase in strength of internet and online connectivity. Both Kindle and Blendle have their advantages as they provide a platform to users to access and store their favourite contents online and hassle-free. With increase in number of users shifting to digital reading, both of the platforms show extreme growth potential​.

Technology of the Week (team 3): Netflix & Blendle

New applications

Netflix has been recently introduced in the Netherlands. For only 7.99 euros per month, Dutch subscribers can have online access to thousands of movies and TV-series at Netflix, using practically every device with an Internet connection.

Blendle, a new online newspaper/magazine platform, has been announced by its developers to enter the Dutch market soon. Blendle is developing a platform where customers can buy single digital articles from different newspapers and magazines. With article prices ranging from 10 to 89 euro cents, it provides a way to compose a personal set of articles of high quality journalism.

Subscription-based vs fee-for-service based

As stated Netflix uses the subscription-based business model, which means that users are charged a fixed monthly fee. Blendle, on the other hand makes use of the fee-for-service-based model. This model charges a fee for every service obtained and contains a pay-as-you-go system.

Recommendation systems

A similarity between the companies is making use of a recommendations system, which can be seen as a competitive advantage for both. Netflix is able to provide its customers with personal recommendations for movies and series through the use of advanced algorithms and collecting big data. Blendle on the other hand will construct a recommendation system with the use of social media. Blendle will suggest articles based on recommendations of your social network.

Uniqueness of Netflix and Blendle

Netflix and Blendle deal with many competitors offering similar services. However, both of the companies are quit unique for their kind. Netflix is the only company offering such a large amount of series and movies for a very low monthly fee without any advertisements. As for Blendle it is expected to be the only application offering a high volume of digital newspapers and magazines in combination with the ability to buy articles per unit.