SWOT Analysis of Zoom | Zoom Competitors | Zoom Business Model | How Does Zoom Make Money?
1. What is Zoom?
Zoom is a platform that allows users to create their own channels that can be subscribed to by other people.
You can also watch videos and live streams of other people on Zoom, chat with friends or the streamer, and send your own broadcasts.
The service launched in 2011 and is available as an app on iOS and Android devices. It has amassed over 300 million monthly active viewers since its launch and is headquartered in San Jose California.
2. Zoom Business Model
Zoom generates revenue through the sale of premium subscriptions. These subscriptions, which can be purchased directly from Zoom, give users unlimited access to all Zoom features. Zoom also allows users to purchase live streaming services for their own channels.
The company generates revenue by allows users to purchase live streaming services for their own channels as well as through sponsorships or donations that are placed at the beginning or end of a stream.
3. How Does Zoom Make Money?
Zoom makes money through premium subscriptions and premium live streaming services. They also generate revenue from sponsorship/donation placements.
Zoom generates revenue through:
a) Premium subscriptions- Users can pay a monthly fee to access additional features.
b) Premium live streaming services- This service is targeted towards individuals who want to make a career out of broadcasting on the service. The user must apply for this service and is evaluated by a Zoom representative who will decide whether or not they are accepted to use this service.
c) Sponsorships and donations- This option is selected when a sponsor or donor wishes to pay upfront to be placed at the beginning or end of a live stream.
d) Other- The Company also generates revenue from various other options available through the service, either for direct payment or through sponsorship/donation placements.
e) Promotion of hardware products- The company produces various hardware products for use with its service, including cameras and microphones.
5. Zoom Plans?
a) Zoom Business- This plan is targeted towards businesses and allows them to pay per channel and/or live streaming service.
b) Zoom Basic- This plan is a subscription service that allows users to pay a monthly fee for certain features.
c) Zoom Business united- This plan is for businesses that want to be able to share their channels and live streams with employees or clients.
d) Zoom Pro- This plan offers both a premium subscription service and allows the user to monetize their content through sponsorships and/or donations.
e) Zoom Enterprise- This plan is for enterprise users who wish to have several channels through the service. This plan allows them to broadcast to a large number of users.
f) Zoom Education- This plan is for educational channels, allowing teachers to have their own channels through the service.
g) Zoom Mobile- This is a paid mobile option which provides HD streaming and all of the features of other plans in addition to pre-roll ads.
h) Zoom Healthcare- This is a pre-paid option for medical professionals who wish to have their own channels through the service.
6. Zoom Partners
Zoom has many partners. Some of these partners include:
a) Acer- Zoom has partnered with Acer to create a tablet that can be used for live streaming. The tablet is called the Acer Liquid Leap, and is being sold in countries around the world.
b) Asus- Zoom has partnered with Asus to create a desktop computer called the Bluboo Xtion. This computer was sold throughout the world and had a built-in camera for live streaming.
c) Aver- Zoom has partnered with Aver to optimize its live streaming services. This partnership was created to help Zoom’s customers have an easier time streaming high-quality video.
d) Facebook- Facebook has partnered with Zoom in order to offer the service on the Facebook platform. Users can now use their Facebook accounts to register for Zoom, making it much easier for them to access all of the features of the service without having to create a separate account.
e) Dell- Zoom partnered with Dell to sell laptops and desktops with built-in cameras for live streaming. This partnership allowed Zoom to expand its accessibility, allowing them to potentially increase their number of user.
7. Zoom Revenue and Financials since 2018
For the first quarter of 2018, Zoom’s revenue was a little over $84 million. The company also reported a net loss of about $11 million for this same period.
In order to maintain the company, Zoom has been able to raise additional capital from private investors as well as from new stock offerings. In 2018 alone, the firm raised over $53 million from new stock offerings and private investors.
Zoom revenue from 2018 to 2021 is expected to reach approximately $225.4 Million. The base year considered for the study is 2017 and the forecast period is between 2018 and 2021.
Zoom’s total addressable market opportunity is estimated to be around $3 billion, growing from $331 million in 2018 to $2.6 billion in 2020.
7. Zoom Competitors
There are several competitors of Zoom. Some of these competitors include:
a) Cisco- Cisco is a company that creates networking equipment, including cameras for live streaming. Zoom can be used with Cisco products to allow users to broadcast video from anywhere. This partnership allows Zoom to expand their service and provide even more of a variety of users.
b) Periscope- Periscope is a popular live streaming app that allows users to broadcast their lives to people around the world, as well as viewers on Twitter.
c) Facebook Live- Facebook Live is a live streaming app offered by the social media giant Facebook.
d) Microsoft- Though not a live streaming platform, Microsoft is a company that offers many different products for broadcasting video, including their own software called X-box. Using this software, Zoom can broadcast live from almost any location.
e) TeamViewer- TeamViewer is a live streaming software company that allows their users to stream live from anywhere. They also allow their users to stream live on top of other applications, allowing users to broadcast while working on another program.
f) BlueJeans by Verizon- BlueJeans is a live streaming platform that allows people to stream on their phones or computers. It was developed by Verizon Wireless.
8. SWOT Analysis of Zoom
• Zoom Strengths
a) Easy to use- Zoom is an easy to use application that offers many features for users. These features include the ability to view unlimited videos, as well as unlimited broadcasts.
b) Good customer service- Zoom has received high ratings for its customer service, which allows users to contact them through email or phone easily.
c) Easy to create channels- Creating an account on Zoom is simple and easy. Users can simply click on the “Live” button at the top of their browser, then click “Go Live.
d) Easy to share- Sharing videos on Zoom is also very simple. Users can easily share videos on the internet by simply clicking “Share.”
e) Multiple features- Zoom allows users to easily assign custom nicknames, change backgrounds, upload images, and more.
f) Unique features- Zoom also offers many unique features, including the ability to broadcast in portrait mode.
g) Brand Recognition – Zoom has had success building brand recognition since its launch. The app is used by 300 million people per month and has over 4.7 million monthly active channels.
h) Finacials Strengths- Zoom has received very positive reviews when it comes to its financials. They have been able to raise capital from private investors, as well as offering new stock to the public.
• Zoom Weaknesses
a) Lack of video and downloading options- Users may not be happy with how Zoom limits the amount of videos they can download.
b) Lack of video and downloading options- Users may not be happy with how Zoom limits the amount of videos they can download.
c) High dropout rate- Some users may not stick around long enough to view the end of the broadcast.
d) Cost- Users will need to pay for their own storage or buy a subscription for this product, which can be expensive for some users.
e) Limited reach- Because Zoom uses internet streaming, they are limited in their content being viewable in certain regions of the world.
f) High production costs- Zoom requires a lot of video to be broadcasted over the internet, which can take up a lot of bandwidth.
g) Limited worldwide reach– Because Zoom uses internet streaming, they are limited in their content being viewable in certain regions of the world.
j) Most Used for Live Streaming Video- Zoom is most commonly used to share live video with people around the world. Some users have difficulty using the app to broadcast other types of media, such as audio.
• Zoom Opportunities
a) Network Habit- Users are used to streaming live through Zoom, so it makes sense for them to purchase this app.
b) Social Media Integration- Users can easily connect their Twitter and Facebook accounts to their account on Zoom.
c) Experience- Users experience live streaming through Zoom, so they may want to buy apps that let them do this.
d) Hype- If the hype surrounding live streaming becomes more popular, users may want to use more apps like Zoom.
e) Trending- If live streaming becomes more popular, more people will want to use Zoom to share their live video.
f) Market – If people already use apps like FaceTime and iMessage, they may be more inclined to purchase certain products, such as Zoom.
g) New Ideas- If new products are introduced, users may want to use them in the future.
h) Utilize Popularity– If there is a sudden increase in popularity around live streaming, users may become interested in trying this app.
i) Audience Growth- If more people start using Zoom, it will need to come with lots of customer service.
• Zoom Threats
a) Data breaches- Since live streams can be watched by anyone, there is always the risk of somebody hacking into the stream. This could result in embarrassing content being put online by hackers for all to see.
b) Cost- Users may not be willing to spend the money they need to spend in order to live stream.
c) Disruptive Technology- Many apps have been developed that offer live streaming services, which means that they may compete with Zoom.
d) Public Perception of Privacy- After a lot of controversial incidents involving the invasion of a user’s privacy through different apps, customers may begin to see live streaming as being too risky.
e) Charging for Storage– If Zoom begins charging for their products, users may stop using the app.
f) High staff turnover- If Zoom is not able to retain enough experienced workers, they may not be able to provide high quality service.
g) Social Media Integration- Some social media apps allow users to share live videos. If Zoom must compete with these networks, this may hurt their reputation.
h) Declining profits as patents run-off- If their patents begin to run out, they may be forced to charge for certain features.
i) Ability to make a profit- Zoom has not been able to turn a profit in the past, which means that they may need to show improvement in order to keep their business going
j) Competition– There are many products similar to Zoom on the market, which leaves room for competition.
9. Customer Segments
a) Live Streaming Video Enthusiasts- This segment is specifically for people who are very interested in live streaming video.
b) Live Streaming Video Users- This segment is for users who are interested in using live streaming video, but don’t have many followers on their social media accounts.
c) Video Creators- This segment is for people who are creating videos or uploading content to YouTube or other platforms.
c) Businesses- This segment is for businesses that want to broadcast live video over the internet.
d) Private Users- This segment is specifically for individuals who want to broadcast their video.
Zoom FAQs
How is Zoom growing?
Zoom has been growing at a steady pace. In the past, they received positive reviews in regards to their financials and their growth.
Why Is Zoom So Popular?
Zoom’s popularity is primarily due to its many features and the ease in which it can be accessed.
The company also has an extremely efficient method of generating revenue, which allows them to provide all of its services for free without detracting from the service itself.
Their business model is simple, yet efficient in addition to providing features that make using the service more efficient.
How Can You Join Zoom?
As an individual, you can apply for the Basic plan by clicking this link: https://www.zoom.com.
How Important is the Channel Owner and Moderator to Zoom?
The channel owner and moderator are of the most importance to Zoom. They control what content is shared, how content is shared, and who can see that content.
The channels of these users can be similar or completely different than what they would publish on YouTube, but they are still important because without the visibility their channels would not be as popular as they are on Zoom.
How Can Zoom Make Money in the Future?
Zoom can make money in the future by offering additional services. This can include things like a shop to buy merchandise or a community section to interact with other users.
It should also include a payment system that allows for users to spend their money on premium content and subscriptions without going through a third party.
What is the Revenue Structure of Zoom?
Zoom generates revenue primarily through the sale of premium subscriptions. These are single-user subscriptions that give users unlimited access to all features of the service.
Once users have paid for the subscription, they are given access to live streaming services, which include sponsorships or donations at the beginning or end of a stream.
How Does Zoom Make Money?
Zoom makes money primarily through the sale of premium subscriptions. These are single-user subscriptions that give users unlimited access to all features of the service.
After users have paid for the subscription, they are given access to live streaming services.
How Does Zoom Earn Revenue?
Zoom earns revenue by selling premium subscriptions to its users, similar to other companies in this industry.
These subscriptions can be purchased as a single-user subscription, or as a multi-user subscription, which includes multiple people on the same account.
How Does the Government regulate Zoom?
Zoom is currently regulated by the FTC (Federal Trade Commission). The FTC has several guides to assist new businesses with understanding these rules, which can be found below:
What risks do you see in the future of Zoom?
Zoom faces risks from regulation and competition from other companies in the streaming industry. Their main competitor is Live, but they have been growing at a much slower rate than Zoom over the last few years.
How does Zoom help its customers?
Zoom provides live streaming video to its users. They can view their live streaming video and also choose to save the content for later if desired.
How is Zoom different from other live streaming apps?
Zoom is very different from other live streaming apps in that it allows people to broadcast live anywhere in the world.
It doesn’t rely on connecting to internet networks, such as Wi-Fi or cellular data, and is currently only available on Apple devices.