e commerce business model of vieon

UNIVERSITY OF ECONOMICS AND LAW FACULTY OF BUSINESS ADMINISTRATOR

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HO CHI MINH, 2024

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CHAPTER 1 VIEON’S TYPE OF E-COMMERCE

EC Model: Business-to-Consumer (B2C) - B2C refers to the process of selling products and services directly between a business and consumers who are the end- users of its products or services (Will, 2024)

B2C model: Content provider - sells digital contents on their platform, using a variety of models, including advertising, subscription; sales of digital goods

« Advertising: VieON incorporates targeted ads before, during, or after video playback, generating revenue from advertisers seeking to reach their vast and diverse user base

¢ Subscription: VieON offers a premium subscription service with enticing benefits like ad-free viewing, exclusive content, and the ability to download content for offline viewing This fee-based model, similar to platforms like Netflix, allows users to access a broader range of content for a set monthly price

¢ Sales of Digital Goods: While not a primary focus currently, VieON might explore the potential of selling specific digital content, such as individual movie rentals or exclusive behind-the-scenes features, in the future

Main type: Fee-based - Direct-to-consumer sites like Netflix charge a fee so consumers can access their content The site may also offer free but limited content while charging for most of it

By effectively utilizing this B2C model with its diverse revenue streams, VieON 1s well- positioned to maintain its competitive edge and expand its user base within the Vietnamese streaming market.

CHAPTER 2 VIEON COMPANY OVERVIEW 1 History of the company's formation

The evolution of consumer behavior and expectations has spurred a digital transformation within the media and entertainment industry Consequently, media companies are undergoing transitions, pivoting towards new digital platforms to adapt to the changing landscape

As a leading domestic entertamment media enterprise, DatVietVAC has been focusing on expanding its investments in Digital Ventures, with the rapid development of companies such as VieON, VietNETWORK, VieDIGITAL, and VieZ Among these, VieON (vieon.vn) serves as the flagship, leading the digital business sector within the Dat VietVAC ecosystem

In 2006, the VieON company was planned for development, with strategic consulting assistance from the U.S.-based BCG Digital Ventures

In 2014, VieON was established by FPT Media Corporation (FPT Media) Initially, VieON was a mobile application providing online streaming services for movies In 2015, VieON launched its web version VieON began collaborating with domestic and international content producers to offer a wider range of content to users In 2016, VieON introduced its Over-the-Top (OTT) service providing live TV channels online

In 2017, VieON launched its Video on Demand (VOD) service offering on-demand movies and TV shows.

In 2018, VieON introduced its Transactional Video on Demand (TVOD) service offering movies and TV shows for rental VieON collaborated with content producers to produce exclusive content for VieON

In 2019, VieON launched its Subscription Video on Demand (SVOD) service offering monthly subscription-based access to movies and TV shows VieON collaborated with advertisers to provide advertising services on the platform

Before 2020, VieON was rebranded from VTVcab ON, a product under the management of Vietnam Cable Television Corporation (VT VCab) and DatVietVAC On June 15, 2020, after four years of research and experimentation, the new version of VieON was officially released by Dat Viet VAC Corporation, marking its official launch VieON introduced its live streaming service providing live programs VieON collaborated with event organizers to provide live streaming services for events From 2020 to the present, VieON has continuously positioned itself as Vietnam's e- commerce platform, improving features, and enhancing its brand, such as introducing an AI (Artificial Intelligence) service providing content recommendations based on user preferences, and collaborating with technology companies to provide AI services for VieON

In January 2024, VieON officially launched its global version, VieON Global, targeting Vietnamese users living abroad

VieON is an On-Demand Video streaming application provided by VieON (formerly known as DZone), a subsidiary of DatVietVAC Media and Entertainment Group in Vietnam The application offers over 140 domestic and international TV channels, as

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well as a selection of domestic and international TV shows and movies from countries such as South Korea, China, and Hollywood

2 Organizational structure

VieON has been established and developed vigorously, making significant contributions to the media and entertainment programs The company's CEO is Mr Huynh Long Thuy For him, awards hold great significance for both him and the VieON company's staff

Figure 1 The company's CEO is Mr Huynh Long Thuy

However, information regarding the company's organizational structure has not been disclosed for security reasons.

The team not only builds a professional and modem working environment but also regularly organizes activities to enhance employee bonding such as team-building, fun runs, and notably, the military training camp - an activity eagerly anticipated by employees every year By organizing many practical activities, the company establishes a leading business culture strategy with the Digital DNA values (speed - logic - accuracy - data proven) guiding the thinking and actions of every employee VieON is a technology product invested in and entirely built by a team of Vietnamese engineers The application has received high praise from technology experts and international partners for its quality and development potential VieON's technological core is gradually realizing DatVietVAC's long-term vision, continuing to be the leading name in the digital transformation trend of the media and entertainment industry in Vietnam

3.2 Regarding VieON's Technology:

In May 2021, VieON and Samsung Vietnam officially signed a strategic cooperation project called the "Hot Key Package” with Samsung TV, a leading entity in the smart TV segment According to Samsung's announcement, VieON is the first Vietnamese application to have a dedicated button on the remote control of Samsung Smart TVs VieON has collaborated with Gravity R&D and MoEngage to help VieON understand users’ preferences and behaviors through predictive features based on Machine Leaming & AI to suggest tailored content to each viewer

Furthermore, VieON and Samsung Vietnam signed a strategic cooperation project called the "Hot Key Package” with Samsung TV, a leading entity in the smart TV segment According to Samsung's announcement, VieON is the first Vietnamese application to have a dedicated button on the remote control of Samsung Smart TVs With a database system capable of analyzing viewers’ demands on social media through APIs to determine user engagement levels VieON owns a vast amount of data about the entertainment habits of over 35 million users, from what programs or movies they watch to how long they watch a single episode Based on audience preferences, the company will plan entertainment content

The VieON Website

Figure 2 The VieON Website

The VieON website is a decent online entertainment platform with a diverse and rich content library, intuitive interface, easy-to-use, and mobile applications for Android and iOS However, the website still has some limitations that need improvement to enhance user experience

4 Awards Achieved During VieON's 3-Year Journey - Asian Technology Excellence Awards 2021-2022

- Inspiring Brand within the framework of the Asian Business Excellence Awards 2022 (APEA)

- Vietnam Digital Transformation Award 2022

- Silver Award in the Outstanding Digital Product for Digital Society category at the Make in Vietnam Awards 2022

- Top 10 Outstanding Enterprises in Vietnam

- Top 10 Most Trusted Brands in Vietnam at the Vietnam Award Ceremony 2021 - Top 50 Attractive Employer Brands - Business Sector (conducted by Anphabe)

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CHAPTER 3 VIEON'S BUSINESS MODEL 1 Products/services provided by VieOn

VieON offers a diverse range of content across various categories, catering to the entertainment needs of all age groups With access to over 140 international and domestic television channels, users can enjoy a wide selection of content from different countries, including popular movies, TV shows, music, cooking shows, and live television broadcasts Additionally, VieON collaborates with renowned platforms like K+ to provide exclusive sports events, further enhancing the entertainment options available

Moreover, VieON provides users with a vast content library, including approximately 100 television channels, 1000 movies, 2000 popular programs, and exclusive entertainment content Users have the flexibility to watch ad-supported VOD movies for free or opt for paid subscriptions to access premium content, even before it airs Furthermore, the VieON app offers convenient features such as saving watched programs, managing favorite content, and reviewing or deleting viewing history The all-access package, VieON's premium service, adds additional perks like access to over 100,000 hours of entertainment content, viewing m Full HD and 4K resolution, multi-device usage, and an ad-free experience

With its diverse and unique features, VieON ensures that users have the best possible entertainment experience, providing a comprehensive platform for accessing a wide range of content conveniently

2 VieON revenue model

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The revenue model of VieON is based on the principles of an integrated e-commerce platform, connecting buyers and sellers on the same online platform

Subscription Revenue Model (Freemium strategy): VieON offers subscription packages to users, charging them registration fees to access their platform These subscription packages may vary in price depending on the features and content available For example, VicON may offer different tiers of subscriptions with varying levels of access to premium content, exclusive features, and ad-free viewing experiences This subscription model provides a recurring source of revenue for VieON and incentivizes users to become paying subscribers for continued access to

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Figure 3 Price List of VicON

Advertising Revenue Model: VieON generates revenue through advertising on its platform This includes various forms of advertising such as pre-roll video ads, in-app banner ads, sponsored content, and product placements Advertisers pay VieON to display their ads to users, leveraging the platform's user base and engagement metrics to reach their target audience This advertising revenue model diversifies VieOQN's

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revenue streams and can be particularly lucrative if the platform has a large and engaged user base

Partnership with Content Providers: VieON collaborates with content producers, studios, and broadcasters to license and distribute content on its platform This partnership involves revenue-sharing agreements, where VieON earns a portion of the revenue generated from distributing licensed content By partnering with content providers, VieON can offer a wide range of high-quality content to its users, attracting and retaining audiences while also generating revenue through content distribution VieON offers entertainment programs from companies specializing in producing game shows such as Giai Tri TV, HTV2, Dong Tay Promotion, For example,

shows like Rap Việt,

Figure 4 VieON's Show

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Business Partnerships: VieON forms partnerships with other businesses to expand tts reach and generate additional revenue streams These partnerships may include collaborations with telecommunications companies to bundle VieON subscriptions with mobile or internet plans, partnerships with electronic device manufacturers to pre-install VieON apps on their devices, or partnerships with payment partners to facilitate seamless transactions and offer promotions to users By leveraging strategic partnerships, VieON increases its market penetration, acquires new users, and enhances the overall user experience while generating revenue through various

partnership arrangements

3 Content Distribution Methods:

VieON has a robust online content distribution system, allowing users to access and utilize their services through various devices such as mobile phones, tablets, personal computers, and other internet-connected devices This enables users to easily access their favorite entertainment content anytime, anywhere

Collaborating with K+ is a prime example of diversifying content on VieON's platform This partnership provides users with a wide range of options, from popular movies, engaging TV shows to top football matches from the English Premier League VieON teams up with leading global corporations like Samsung TV, Canal Plus [K+] to enhance utility and diversify their entertainment content to a large number of users Therefore, users can easily find content that suits their preferences and entertainment needs on a single optimized application, especially with Samsung TV products

Investing in modern technology, particularly Content Delivery Network (CDN) infrastructure, VieON is capable of delivering hundreds of pieces of content daily to

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users worldwide This system ensures that content is transmitted quickly and robustly, minimizing wait times and ensuring the best possible user experience

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- Accepted international payment cards: Visa/MasterCard

- E-wallet payment options include MoMo, ZaloPay, and ShopeePay

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- Payment methods: VNPAY-QR and SMS from Viettel, Mobifone, and Vinaphone - Payment using Viettel Money, an online payment channel

- Payment using ATM card and Mobile

Buyers simply need to select the package term from | to 12 months, as needed Then, select a payment option from ZaloPay e-wallet, foreign payment cards, ShopeePay e- wallet, or Momo All billing information will show on the right side of the screen Buyers only need to input your personal payment information and it is automatically done

5 Customer support

VieON provides a comprehensive support system to assist users when they encounter problems with the application The purpose of this system is to unify the process of receiving customer feedback, requests, and complaints and the process of resolving customer feedback, requests, and complaints

The platform provides users with several ways to contact They can call the toll-free customer service hotline 24/7: 1800 599920 for a direct and comprehend explanation and instruction They can, otherwise, send a message to the “Chat with VieON” section in the mobile app or website as well as sending feedbacks through the official VieON Facebook page Formally, people can contact VieOn supporters through email: support@vicon.vn

Following is the standardized receiving and resolving process VieON will acknowledge receipt of the user’s complaint within 3 working days from the date of receipt, except in cases of force majeure The representative of VieON will receive and negotiate with the user within 7 working days from the date of receipt of the

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user’s negotiation request After receiving the user’s information, the customer service department of VieON will create a receipt on the system, investigate related information to the user’s complaints, including user account information, content viewing information, and payment transaction information Having confirmed the above information, VieOn will classify the user’s complaints and provide appropriate solutions Finally, the customer service representative will notify the user of the resolution results and store the information in the Receipt and Resolution Form on the

system

6 Build and organize website/app

VieOn provides a premium entertainment experience with VIP, FAMILY, HBO GO, SPORT, and ALL ACCESS service packages Users can set reminders so they don't miss their favorite shows and enjoy content on many devices such as Smart TVs, smartphones, tablets and computers in Full HD, 4K quality Arranged and organized in a smart, understandable way, the entertaining contents are divided into category lines such as TV series, movies, sports, animations, or live programs

Users can sign in and login to easily manage personal information and information about the entertainment content they have consumed and are interested in First thing VieOn does when a user signs in to create an account is ask what kinds of online entertainment content you are fond of By that, the system can provide content suitable to each individual's preferences (smart content recommendation system) supported by Big Data and AI VieOn shows its users what contents are trending, what are the latest TV series or programs and so on

Besides, VieOn also uses AI technology to improve user experience, such as recognizing celebrity faces, recognizing actions and products in videos, helping to increase the accuracy of its advertising and e-commerce systems Thereby, VieOn has personalized and upgraded user experiences

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VieON has built user data components to understand what audiences want, understand user profiles; thereby, presenting the most appropriate advertisements Only viewers interested in and genuinely in need of the content see the ads This avoids users being annoyed by ads when using a platform

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VieON applies advanced technologies to develop more effective advertising-sales strategies than traditional methods, helping to optimize costs VieON plans to support all popular payment methods currently available on the App Store and Play Store, especially choosing payment methods via the MoMo e-wallet, thereby offering promotional programs to customers when using it, such as: "Get 50% cashback, up to 30,000 VND" for first-time ZaloPay users when purchasing VieON VIP entertainment packages Get 20,000 VND off for customers purchasing any service package from VieON when paying with MoMo VieON also offers a 50% discount program for customers when signing up for VieON VIP/HBO GO VIP on birthdays and other occasions

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