Business Strategies and Revenue Models for Converged Services

Abstract

Convergence has been identified since the 1970s as a force that would reshape media and telecommunications industries. The notion is often used in ambiguous ways, confounding technological, economic, social, cultural, and global aspects. Moreover, the focus is often on the homogenizing and integrative aspects whereas the equally present diversifying and differentiating aspects are often overlooked. A main effect in the media industries is the blurring of lines between formerly separate media platforms such as over-the-air broadcasting, cable TV, and streamed media. Consequently, content that previously was only available on television can be delivered seamlessly to consumers via personal computers, smartphones, tablets and other mobile devices. Moreover, content that was once delivered via different, specialized technologies (e.g., broadcasting, cable TV) can now be distributed through multiple platforms, allowing easier viewer access independently of time and space. Convergence also provides consumers with new means of accessing entertainment and audiovisual content. Many converged video services such as Internet Protocol TV (IPTV) and mobile TV have appeared in the market. This chapter analyzes business strategies for converged video services, with a focus on IPTV, mobile TV, and OTT video services.