The Internet and the Value Chains of the Media Industry

Thomas Hess () and Christian Matt ()
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Thomas Hess: Ludwig-Maximilians-Universität (LMU) München
Christian Matt: Ludwig-Maximilians-Universität (LMU) München

Chapter 4 in Media and Convergence Management, 2013, pp 37-55 from Springer

Abstract: Abstract The Internet has had a significant influence on value creation processes of companies. This applies not only to the electronic communication with suppliers and sales partners, but also to the Internet as a new channel to directly address consumers. While this development has led to more efficient forms of business processes, it has also had an impact on companies’ business models. This is particularly true for the media industry, in which these technology-driven changes have, on the one hand, sometimes led to declining revenues that have threatened the existence of many traditional players. Also the Internet has led to a convergence of media, since in the digital format all media types can be distributed and consumed over the Internet. Conversely, this has also enabled a long list of new ventures and business models. In addition, this development has caused changed market conditions and power proportions between certain players, which have an impact on competition as well as on potential collaborations between different firms. Overall, all of these recent changes fall into three categories that differ in the underlying drivers as well as in their potential impact. For the time being, none of these developments seems to have fully developed its potential yet, so media markets are likely to undergo further changes.

Keywords: Value Chain Stages; Gatekeeper Type; Indirect Network Effects; Media Companies; Music Labels (search for similar items in EconPapers)
Date: 2013
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DOI: 10.1007/978-3-642-36163-0_4

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