Abstract
This paper investigates key determinants of business performance in China’s video industry in the era of digital convergence. Specifically, we analyze China’s OTT (over-the-top) service providers and cable operators based on the perspective of an industry platform, which acts as the core module of a business ecosystem and is capable of facilitating and coordinating interdependence among different agents. Panel data models are established to empirically explore what factors impact the performance of these two types of players. The findings demonstrate that both platform use and the size of an installed base are crucial for the determinants of the performance of OTT service providers and cable operators. An online video platform can also benefit from an increasing proportion of mobile viewers by implementing a multi-screen strategy. Further, an OTT service provider can profit from the interaction between its installed base and UGC (user-generated content), while cable operators can take advantage of positive feedback between their demand side and supply side.
Highlights
Since the 1990s, some sectors in the information and communication technology (ICT) industry have been undergoing convergence worldwide
Regarding OTT service providers and cable operators as potential industry platforms, this paper explores performance determinants for the two types of players
In Model 5, the results show that Coverage2 has a significant and positive impact on the performance of OTT service providers
Summary
Since the 1990s, some sectors in the information and communication technology (ICT) industry have been undergoing convergence worldwide. The video industry has experienced critical changes in last decade, with a large number of novel technologies and new agents, and shorter life cycles [4]. In this respect, assuring performance sustainability is becoming harder and depends on reaching a solid competitive advantage during the technological battles [5,6]. New entrants and established firms both face the challenge of identifying how to achieve a competitive advantage
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