Question

MGMT Must-See Inc., a young disruptor in the world of eCommerce and digital media, is looking to make a name for itself in the online entertainment industry. A spinoff from its parent company’s brick-and-mortar retail stores, MGMT Must-See Inc. offers video on demand services; access to many syndicated shows from popular media networks; and several other classes of digital content, the most noticeable of which is music, and user generated content like live streaming of games and digital videos. Looking to out-Netflix Netflix, the company has spent millions of dollars on software development and is betting on its in-house developed killer app “aiZip” which uses an AI (Artificial Intelligence) enhanced algorithm to compress high quality video into a framework that requires less than 270Kbps – that’s 270 Kilo Bits Per Second, for you non-streamers. Coupled with the wide spread growth of broadband, buffering will be a thing of the past, even on the slowest network connection. The company is also very data driven and has spent months and additional hundreds of thousands of dollars collecting and analysing statistics (from The Movie Database and other websites), on the movie business; and on reviewing the lessons on prediction that Netflix learned when it shelled out a million dollars in its Netflix Prize (https://www.netflixprize.com/)

Explain the advantage and disadvantage of e commerce in terms of finance on the must see inc company