Paid and Free Digital Business Models Innovations in the Video Game Industry

Myriam Davidovici-Nora
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Myriam Davidovici-Nora: Institut Mines-Telecom/Telecom-ParisTech, Paris

Communications & Strategies, 2014, vol. 1, issue 94, 83-102

Abstract: Digitalization of distribution has led to the creation of a broad range of digital business models in the video game industry among them freemium, subscription, advertisement, free-to-play. What are the borders of each model and on what economic grounds can we compare them? This paper proposes an interdisciplinary approach based on microeconomics and on business models literature to provide insights into the components and the economic architecture in paid and free business models. This framework enables also to understand recent hybrid paid and free business models in the video game industry.

Keywords: free-to-play; pay-to-play; video games; business model; innovation. (search for similar items in EconPapers)
JEL-codes: L21 L82 M21 Z1 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (10)

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