Table of Contents

Handbook on the Economics of the Internet

Handbook on the Economics of the Internet

Edited by Johannes M. Bauer and Michael Latzer

As the single most important general purpose technology of recent times, the Internet is transforming the organization, competitive structure and business models of the private, the public and non-profit sectors. In 27 original chapters, leading authors discuss theoretical and applied frameworks for the study of the economics of the Internet and its unique economics as a global information and communications infrastructure. They also examine the effects of the Internet on economic transactions (including social production, advertising, innovation, and intellectual property rights), the economics and management of Internet-based industries (including search, news, entertainment, culture, and virtual worlds), and the effects of the Internet on the economy at large.

Chapter 23: Business strategies and revenue models for converged video services

Yu-li Liu

Subjects: economics and finance, industrial economics, innovation and technology, technology and ict


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.

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