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The Convergence between Content and Access: Internalizing the Market Complementarity

Author

Listed:
  • Curien Nicolas

    (Autorité de Régulation des Communications Electroniques et des Postes and Laboratoire d’Econométrie, Conservatoire National des Arts et Métiers)

  • Moreau François

    (Laboratoire d’Econométrie, Conservatoire National des Arts et Métiers)

Abstract

Developing a simple model of the content and access industries in the digital era, we show that, given the positive consumption externality from entertainment content (music, video) on access networks and playing devices (fixed broadband, 3G mobile, digital players, etc.), both content and access industries have an interest in blurring their business frontiers. As digital piracy, which is still increasing the above externality, benefits access providers to the detriment of content providers, a "win-win" game is possible only if access providers participate in content production, either through a subsidy or co-production.

Suggested Citation

  • Curien Nicolas & Moreau François, 2007. "The Convergence between Content and Access: Internalizing the Market Complementarity," Review of Network Economics, De Gruyter, vol. 6(2), pages 1-14, June.
    • Handle: RePEc:bpj:rneart:v:6:y:2007:i:2:n:5
    DOI: 10.2202/1446-9022.1115
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    Cited by:

    1. Pierre-Jean Benghozi & Françoise Benhamou, 2021. "Media and the Internet Access Providers in an Era of Convergence," Post-Print halshs-03503861, HAL.
    2. Elisa Salvador & Jean-Paul Simon & Pierre-Jean Benghozi, 2019. "Facing disruption: the cinema value chain in the digital age," Post-Print hal-02300929, HAL.
    3. Soohyun Cho & Liangfei Qiu & Subhajyoti Bandyopadhyay, 2016. "Should Online Content Providers Be Allowed To Subsidize Content?—An Economic Analysis," Information Systems Research, INFORMS, vol. 27(3), pages 580-595.

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