Strategies for power and control in online television markets:

towards co-opetition

Tom Evens iMinds-MICT, Ghent University

Private Television in Europe ‘Connecting to the Future’Brussels, 19 April 2013

Ecology of change Changing configurations of power and control

Growing opportunities for new entrants Opportunities shaped or blocked by pre-existing power

structures and incumbents’ foreclosing strategies

Prominent opportunity: over-the-top (OTT) TV Traditional TV content and broadband delivery platforms Emerging players, burgeoning market

Strategic impact of OTT Bypass traditional gatekeepers Establish direct-to-consumer relationship

Broadcaster

Producer

Distributor

Consumer

OTT operator TV Everywhere

Advertiser

= OVER-THE-TOP TV = MANAGED NETWORKS

Game consolesStreaming players Set-top boxes Connected TV’s

Co

nte

nt

C

lou

d N

etw

ork

Dev

ice

Co-opetition and alliances Rivals simultaneously compete and cooperate Horizontal partnerships & complementary resources

Strategic alliances: access new markets and resources Share resources and competencies Complex value systems, multi-stakeholder environment

Ecosystems compete through business models Institutionalise technological innovation (cannibalisation) Adapt to changes in external environment Create and capture value

Battles and conflicts Gatekeepers employ controlling points

No longer technological in nature (abundance) Commercial and artificial bottlenecks Monopoly control creates competitive advantage

Resource dependency & power imbalance Power play strategies by all parties (market foreclosure) Restrain access to critical resources Favour own ecosystem and interests

Platform leadership

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Intense platform competition Goal: control the future TV ecosystem

Secure access via controlling points Occupy a critical position in the ecosystem Gain bargaining power vis-à-vis competitors

No battlefield, rather a chess game Alliances, partnerships and collaboration key to success Embed in existing ecosystem or control your own one

Ability to create and capture value Co-create, co-design, co-develop with the ecosystem Develop compelling user experience Experiment innovative business models

Foresight OTT could have far-reaching implications

New players manoeuvring in this emerging market Incumbents re-invent bottlenecks to control OTT

Strategy: stop abundance, create scarcity OTT market still immature, outcome is uncertain Double-edged sword for viewers

More control of consumption (multiplatform, interactivity) Erosion of advertising-based revenue model Emergence of subscriptions, also on the web Endangers key values of public goods, non-excludability

and universality

Tom.Evens[at]UGent.be

http://www.mict.be

http://be.linkedin.com/in/tomevens