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The economics of online television: Industry development, aggregation, and “TV Everywhere”

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  • Waterman, David
  • Sherman, Ryland
  • Wook Ji, Sung

Abstract

Although still dominated by standard television, the online TV industry is growing rapidly. Entrants employ a range of business models, and we identify a prevalent tendency for leading providers to aggregate programming from a variety of different content owners. We focus on one form of content aggregation by multi-channel programming distributors (MPVDs) widely known as “TV Everywhere (TVE).” Following a brief taxonomy of TVE systems, we develop an economic model to show how this “free-with-authentication” (of MVPD subscribership) bundling practice can be explained as a price discrimination device intended to slow MVPD disconnections. We show that TVE bundling could also deter entry into the online TV market. We discuss the potential roles of horizontal and vertical integration of MVPDs and ISPs in online TV industry development, again focusing on TVE, and conclude with policy implications.

Suggested Citation

  • Waterman, David & Sherman, Ryland & Wook Ji, Sung, 2013. "The economics of online television: Industry development, aggregation, and “TV Everywhere”," Telecommunications Policy, Elsevier, vol. 37(9), pages 725-736.
    • Handle: RePEc:eee:telpol:v:37:y:2013:i:9:p:725-736
    DOI: 10.1016/j.telpol.2013.07.005
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    2. Sung, Nakil & Kwack, Eunkyoung, 2016. "IPTV's videos on demand for television programs, their usage patterns, and inter-channel relationship in Korea," Telecommunications Policy, Elsevier, vol. 40(10), pages 1064-1076.
    3. Nishioka, Yoko, 2017. "Stability and Possible Change in the Japanese Broadcast Market: A Comparative Institutional Analysis," 14th ITS Asia-Pacific Regional Conference, Kyoto 2017: Mapping ICT into Transformation for the Next Information Society 168526, International Telecommunications Society (ITS).
    4. Shin, Jungwoo & Park, Yuri & Lee, Daeho, 2016. "Strategic management of over-the-top services: Focusing on Korean consumer adoption behavior," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 329-337.
    5. Pierre-Jean Benghozi & Françoise Benhamou, 2021. "Media and the Internet Access Providers in an Era of Convergence," Post-Print halshs-03503861, HAL.

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