Industry Services
Companies that provide social media platforms are classified as Data Processing, Hosting, and Related Services industry and are under the code 518210 in the Census Bureau (NAICS). The companies in this industry are majorly involved in the provision of infrastructure for data processing services like webhosting, data storage, video and audio streaming (Census Bereau, 2021). The well-known firms in this industry are Google Inc, Facebook Inc, Seagate Technology Inc, among many others.
The services offered by the firms in this industry varies from one company to another, though, some like video and audio streaming are similar in all the entities. Amazon Inc for instance offers Amazon Web Services, Amazon drive for storage and Amazon video. Google Inc offers video streaming through YouTube, blogging capability on Blogger and cloud storage services on the Google Drive (Google, 2021). Twitter Inc offers Easy Chirp which is an optimized web application for people with disability and PeopleBrowsr which is a data mining and analytic platform.
Streaming Services Microeconomic Variable
In this industry there so many services that are offered, for the case of analyzing a microeconomic variable, I have chosen video and audio streaming services. This is one of the services in this industry that has shown an upward sales revenue generation. The sales from 2011 to 2016 as shown in the below diagram indicates this service is generating good sales compared to other methods like downloads and physical sales (THATERICALPER, 2017).
The diagram below shows the streaming sales of music for 2016 was more than half of the total music sales revenue. This sales income is projected to increase in coming years as more people spend more time on the social network. The month’s American citizens were in lockdown due to covid19 will contribute a lot in making this sales figure to move up.
Increasing Taxes on Streaming Services
Although, video and audio streaming services have potential of growth if the government continue to increase tax levied on these services, this sales income might decline in years to come as subscribers may be unable to pay their monthly subscription bills. In 2018, the subscribers of streaming services were far beyond the traditional pay subscription (Deloitte, 2021). The increase in the number of subscribers may lure the government to tax these services more and in response the subscribers may opt to forego using the services.
Companies that provide social media platforms are classified as Data Processing, Hosting, and Related Services industry and are under the code 518210 in the Census Bureau (NAICS). The companies in this industry are majorly involved in the provision of infrastructure for data processing services like webhosting, data storage, video and audio streaming (Census Bereau, 2021). The well-known firms in this industry are Google Inc, Facebook Inc, Seagate Technology Inc, among many others.
The services offered by the firms in this industry varies from one company to another, though, some like video and audio streaming are similar in all the entities. Amazon Inc for instance offers Amazon Web Services, Amazon drive for storage and Amazon video. Google Inc offers video streaming through YouTube, blogging capability on Blogger and cloud storage services on the Google Drive (Google, 2021). Twitter Inc offers Easy Chirp which is an optimized web application for people with disability and PeopleBrowsr which is a data mining and analytic platform.
Streaming Services Microeconomic Variable
In this industry there so many services that are offered, for the case of analyzing a microeconomic variable, I have chosen video and audio streaming services. This is one of the services in this industry that has shown an upward sales revenue generation. The sales from 2011 to 2016 as shown in the below diagram indicates this service is generating good sales compared to other methods like downloads and physical sales (THATERICALPER, 2017).
The diagram below shows the streaming sales of music for 2016 was more than half of the total music sales revenue. This sales income is projected to increase in coming years as more people spend more time on the social network. The month’s American citizens were in lockdown due to covid19 will contribute a lot in making this sales figure to move up.
Increasing Taxes on Streaming Services
Although, video and audio streaming services have potential of growth if the government continue to increase tax levied on these services, this sales income might decline in years to come as subscribers may be unable to pay their monthly subscription bills. In 2018, the subscribers of streaming services were far beyond the traditional pay subscription (Deloitte, 2021). The increase in the number of subscribers may lure the government to tax these services more and in response the subscribers may opt to forego using the services.
