How do you believe customers view online payment systems


Discussion - Ebusiness

1. Payment Online

Discuss the difference between accepting a payment online versus in person and describe some of the problems associated with online payments from the vendor and customer points of view. Be sure to answer the following questions:

a. How do you believe payment system benefits, complications, and complexity can help or hinder new online business owners from establishing a business online? Compare and contrast new owner scenarios with large and established businesses.

b. How do you believe customers view online payment systems?

Explain your answer in 200 words. Respond to at least two of your fellow students' postings.

2. Listen to an audio podcast on online payment systems from a shopping cart provider. A standard browser and speakers are required to access the podcast at: GoECart Audio Version. Alternatively, the article can be read here: GoECart Written Version.

3. Copyright Issues

Read the Closing Case in Chapter 11, Why is Disney Funding Chinese Pirates? Give a reasoned answer to why Disney might be investing in 56.com instead of fighting with this popular Chinese file-sharing website. The post should be a minimum of 200 words. Respond to at least two of your fellow students' postings.

4. Closing Case: WHY IS DISNEY FUNDING CHINESE PIRATES?
Disney's funding arm, Steamboat Ventures, invested $10 million in a popular Chinese video- and file-sharing site called 56.com. The site had 33 million registered members in 2009. Note that the words for "56" in Chinese sound similar to "I'm Happy."

The Problem

In May 2008, The Walt Disney Company released its animated film WALL-E; the film was released on DVD in November 2008. However, immediately after the movie release in May, the robot love story was available for free on the Chinese video site 56.com. In other words, Disney is funding a Chinese site that bootlegs it own work.

The problem is that pirated movies are difficult to detect because they appear under different names. Although 56.com managed to remove some of the full-length bootlegged copies, many others remain. The 56.com site is often referred to as a Chinese version of YouTube. But unlike YouTube, 56.com and similar sites like Tudou and Youku don't 454455impose 10-minute limits on uploaded videos. And that makes them a haven for illegally uploaded videos, including full-length movies and TV episodes.

If 56.com were in any country but China, we'd expect the Recording Industry Association of America (RIAA) and similar organizations to put pressure on the company to remove copyrighted materials. But China doesn't have a very strong record of enforcing Western copyright laws.

The Solution

One reason that Disney invested in 56.com was that it hoped that Steamboat Ventures, as a major investor, would influence 56.com to take action against copyright violators. In other words, Steamboat Ventures is trying to help 56.com curb pirated videos.

In the United States, you can take legal action against companies such as 56.com. For example, media giant Viacom is suing YouTube for $1 billion. However, that is not an option (yet) in China. At best, the Chinese government will provide a warning to violators.
The Results

Although 56.com is still facilitating free movies, video games, and the like, Disney seems not to be too concerned with these actions. Its investment provides the company a channel of distribution for its products that may provide a strategic advantage to Disney in China. In March 2009, Disney allowed YouTube to run short videos as well as full episodes of its ABC (a television station) and ESPN (Internet and television sports channel) networks under an ad-revenue sharing arrangement.

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Microeconomics: How do you believe customers view online payment systems
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