THE IMPACT OF THE LONG TAIL ECONOMY ON THE BUSINESS RESULT OF THE DIGITAL PLATFORM: THE CASE OF SPOTIFY AND MATCH GROUP

Joško Lozić, Marin Milković and Katerina Fotova Čiković
Additional contact information
Joško Lozić: University North, Croatia
Marin Milković: University North, Croatia
Katerina Fotova Čiković: University North, Croatia

UTMS Journal of Economics, 2022, vol. 13, issue 1, 43-55

Abstract: Purpose: The aim of this paper is to analyse the business performance of corporations from the platform economy model in the context of the long tail economy model. By comparing business results, analyse the significance of the impact of the long tail economy on business performance. Methodology: The research is focused on analysing the business results of Spotify and Match Group corporations. The research compares the business results of selected corporations in the context of the impact of long tail on business management, financial result and the trend in the number of users of the platform. The methodological framework is unique and applicable to all other corporations from the platform economy model. Results: The survey results showed significant differences in the impact of the long-tail economy on selected corporations. In addition, the survey results showed a significant impact of other factors on the business result that are not closely related to the long-tail economy. Conclusion: The effects of the long-tail economy model need to be analysed on a case-by-case basis in the platform economy. Both corporations are increasing total revenue and customer numbers, but Spotify is operating at a loss, while Match Group is increasing profits year on year.

Keywords: Gross profit; long tail economy; long tail business models; Match Group; platform economy; Spotify (search for similar items in EconPapers)
JEL-codes: O31 O33 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://utmsjoe.mk/files/Vol.13.No.1/4.THE-IMPACT- ... -AND-MATCH-GROUP.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:utmsje:0324

Access Statistics for this article

UTMS Journal of Economics is currently edited by Prof. Ace Milenkovski, PhD

More articles in UTMS Journal of Economics from University of Tourism and Management, Skopje, Macedonia Contact information at EDIRC.
Bibliographic data for series maintained by Assistant Professor. Dejan Nakovski, PhD ().