Abstract
This study offers an economic analysis of the television broadcasting industry at the convergence of broadcast and broadband connectivity. It applies the „Structure-Conduct- Performance“(SCP)-paradigm of Industrial Organization theory as framework and investigates how the model can contribute to explaining emergent issues in the economics of Smart TV. It is argued here that SCP model provides a useful heuristic and can fruitfully be applied to various questions surrounding the fundamental transformation of the television broadcasting sector towards Smart TV, notably issues of market structure and competitive behavior. The argument is illustrated by the emerging ecosystem for Smart TV services in Germany. There, the market is still immature and each provider is struggling with the challenge of developing an optimal strategy and organizational form in the Smart TV ecosystem.
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