Browse by title
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.
Justus Haucap and Torben Stühmeier
The rapid rise, enduring growth and success of Internet markets and e-commerce platforms have spurred a lively and sometimes heated debate among academics and policy-makers: do Internet markets foster competition or are they prone to concentration, possibly to the point of monopolization? Competition economists and lawyers vigorously discuss the peculiarities of these markets and whether traditional rules and interpretations of competition law are sufficient to deal with potential new competition problems. The cases against search engine Google have received most public and academic attention, closely followed by the e-book case against Apple. In addition, numerous cases concerning vertical restraints in online sales have recently been brought before European courts. These vertical restraints include across-platform parity agreements (APPAs), which are a special form of a most-favored customer clause, general bans on online sales or bans on particular platforms, dual pricing systems, and selective and exclusive distribution systems. This chapter starts with a brief discussion of the peculiarities of online markets and then discusses recent antitrust cases related to the Internet.
Christian Handke, Paul Stepan and Ruth Towse
Cultural economics is concerned with the supply, demand and markets for creative goods and services. As suppliers of information goods and services, the arts, heritage organizations and cultural industries are greatly involved in the changes accompanying the diffusion of ever-new Internet-based services and digitization. Much Internet traffic consists of reproducible cultural works, such as music recordings and movies. Moreover, the Internet has had an impact on cultural services that require ‘live’ participation. Accordingly, this chapter addresses changes in the production, consumption and distribution of the output of the cultural sector due to the Internet.
Michael Latzer, Katharina Hollnbuchner, Natascha Just and Florian Saurwein
Algorithms have come to shape our daily lives and realities. They change the perception of the world, affect our behavior by influencing our choices, and are an important source of social order. Algorithms on the Internet have significant economic implications in newly emerging markets and for existing markets in various sectors. A wide range of our daily activities in general and our media consumption in particular are increasingly shaped by algorithms operating behind the scenes. This chapter offers a typology of applications based on algorithmic selection and provides a basic input-throughput-output model in order to show the functioning and economic purposes of the different types of algorithmic selection. It explains theoretical perspectives applied for its analysis and presents results from market analyses. Different phases of the markets for applications using algorithmic selection are shown, their structures and concentration tendencies explored. After a discussion of business models of algorithmic selection with an emphasis on value proposition, value creation and revenue stream the chapter examines selected implications of algorithmic selection for traditional media markets and the incumbents’ profitability. An identification of risks, such as possible violations of basic rights, is complemented by a discussion of regulatory challenges and available governance options.
Claudio Feijóo, José-Luis Gómez-Barroso and Shivom Aggarwal
Although there is no widely consented definition, big data can be characterized by specific properties or ‘dimensions’, most importantly volume, variety, velocity, and veracity and/or validity. Other concepts such as data science, data mining and data visualization have arisen around the term big data. It has also been heralded as contributing to a major transformation in the methodology of scientific work and it is linked to the Internet of Things (IoT) and the notion of open data. Given the emergent nature of the big data domain, it is no wonder that from an economic perspective it is still a field with more questions than answers. Main topics that slowly start to appear in the scientific literature and the research roadmaps are, among others, issues related to the economic value of data12 and their impact on growth, jobs and the quality of life, the analysis of the structure of this emerging industry and its implications for innovation and competition, and the application of new and existing economic theories to explain its dynamic behavior. This chapter explores the emerging domain of big data economics. It describes the features of the big data ecosystem, the main players, and their relationships. From there different economic approaches are used to explore the big data market, its dynamics and the value of data within it. Opportunities and challenges for both researchers and marketers are explored. The chapter concludes with a few reflections on policy issues.