Convergence and innovation strategy for service provision in emerging Web‐TV markets

Abstract

The convergence between online or internet services and television has often been represented by the term “Web‐TV”;. But one must make a distinction between the type of service Web‐TV and the company named “WebTV Networks”; who pioneered the business in 1996 and is now a subsidiary of Microsoft. There are also important strategic questions when positioning a new product and service category between the existing markets for online services or TV. Furthermore, we argue that one must distinguish between the direction of innovation and the added value through combining both TV and online content, services, and technology. The strategic positioning along this converging value chain will be an important question for the providers of content, service and transmission, software technology and hardware manufacturers from the online service, personal computer, and TV industries. For players in each industry, it seems possible that they can provide incremental extension of core business by creating convergent solutions and coordinating their distinct competencies and several other critical success factors. Finally we look at barriers and enablers that will face an introduction of this service category in Europe and suggest directions for further research.