April 16, 2023

One of the Benefits of Disintermediation in the Video Industry

one of the benefits of disintermediation in the video industry is that

One of the benefits of disintermediation in the video industry is that it allows companies to sell directly to consumers without involving middlemen. This can save money for customers and help businesses make more profits in the long run.

The origin of the term “disintermediation” can be traced back to the 1960s in the financial industry when investors were given the opportunity to invest directly into stocks and bonds instead of having to deal with a broker or a bank. Today, many businesses are taking this concept to new levels by removing the middleman from their supply chains.

Disintermediation can also help businesses build stronger relationships with their distributors, retailers and consumers — something that is often difficult for smaller businesses to do on their own. However, it can also have some risks.

First, businesses that adopt this strategy may have to devote more resources to cover the cost of handling a distribution channel that was previously handled by an intermediary. Second, it can take longer for businesses to access markets that were previously unavailable to them.

Lastly, cutting out distributors and retailers can also lower a brand’s awareness — which can lead to less sales and fewer market opportunities.

Although disintermediation can be a beneficial strategy, it’s important to consider all of the potential downsides before making the decision to adopt it. The pros and cons of disintermediation must be weighed against the overall business model, including costs, resources and risks.


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