With the emergence of over-the-top (OTT) services, consumers can enjoy broadcasting contents using personal computers, smartphones, and tablets whenever and wherever they want. Not only are traditional broadcasting service providers entering the OTT service market, but Internet service providers are making the move too, leading to competition with each other to achieve market power.
A team led by Prof. Lee of SKKU estimated consumers’ preference for OTT services based on conjoint survey data, and conducted a market simulation based on the estimation result, in order to analyze the change of market penetration ratio in accordance to the change of market strategy of each broadcasting service provider. As a result, consumers have the highest priority for real-time broadcasting. When the terrestrial television broadcasting service provider does not provide its contents to other service providers, Internet service providers and pay TV service providers can increase their market power by decreasing the price and by increasing the number of VODs respectively.
This study was published in the journal Technological Forecasting and Social Change in November 2016.
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