Skip to main content
SpringerLink
Log in

Power to the Platforms

  • Chapter
  • First Online:
Platform Power and Policy in Transforming Television Markets

Part of the book series: Palgrave Global Media Policy and Business ((GMPB))

Abstract

This chapter aims to comprehend the distribution of power in the global television value chain. It centres on the organisation of the industry, identifies the key actors in the television industry and assesses the differing financial returns as an indication of structural power. Industrial upgrading strategies and the emergence of the content-service-distribution combination are discussed. It highlights the distribution of power in the value chain and suggests that power ultimately depends on the specific context. It emphasises the impact of policy frameworks on the governance and industry structures. The territorial structure is analysed, paying particular attention to cross-border SVOD services. Finally, the chapter elaborates on the shift from value chains to platforms; a shift that is changing the structure and the competitive dynamics of the television industry. Hulu is presented as a prime example of broadcasters working together to tackle future strategic challenges and defending their position.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 99.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 129.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 129.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Afuah, A. (2014). Business model innovation. New York: Routledge.

    Google Scholar 

  • Anthony, S. (2008, March 12). Have NBC and Fox forgotten enough to disrupt? Available at: https://hbr.org/2008/03/have-nbc-and-fox-forgotten-eno (October 24, 2017).

  • Armstrong, M. (2006). Competition in two-sided markets. RAND Journal of Economics, 37(3), 668–691.

    Article  Google Scholar 

  • Bair, J. (2009). Global commodity chains: Genealogy and review. In J. Bair (Ed.), Frontiers of commodity chain research (pp. 1–34). Stanford: Stanford University Press.

    Google Scholar 

  • Ballon, P., & Evens, T. (2014). The platformisation of the audiovisual industry. Paper presented at the World Media Economics and Management Conference, Rio de Janeiro, Brazil.

    Google Scholar 

  • Bergman, M., & Stennek, J. (2007). Competition in TV-distribution—A framework and applications to Sweden. Stockholm: Research Institute of Industrial Economics.

    Google Scholar 

  • Boston Consulting Group. (2016). The value of content. Available at: https://www.libertyglobal.com/pdf/public-policy/The-Value-of-Content-Digital.pdf.

  • Chalaby, J. K. (Ed.). (2005). Transnational television worldwide: Towards a new media order. London: I.B. Tauris.

    Google Scholar 

  • Chalaby, J. K. (2016a). The format age: Television’s entertainment revolution. Cambridge: Polity.

    Google Scholar 

  • Chalaby, J. K. (2016b). Television and globalisation: The TV content global value chain. Journal of Communication, 66(1), 35–59.

    Article  Google Scholar 

  • Chen, D., & Waterman, D. (2007). Vertical ownership, program network carriage and tier positioning in cable television: An empirical study. Review of Industrial Organization, 30(3), 227–251.

    Article  Google Scholar 

  • Cheredar, T. (2014, February 27). Hulu sells its ‘Hulu Japan’ service to Nippon TV. Available at: https://venturebeat.com/2014/02/27/hulu-sells-its-hulu-japan-service-to-nippon-tv/ (October 22, 2017).

  • Christophers, B. (2008). Television’s power relations in the transition to digital: The case of the United Kingdom. Television & New Media, 9(3), 239–257.

    Article  Google Scholar 

  • Cunningham, S., & Silver, J. (2013). Screen distribution and the new King Kongs of the online world. Basingstoke: Palgrave Macmillan.

    Book  Google Scholar 

  • Daidj, N., & Jung, J. (2011). Strategies in the media industry: Towards the development of co-opetition practices? Journal of Media Business Studies, 8(4), 37–57.

    Article  Google Scholar 

  • Davenport, T. H., & Beck, J. C. (2001). The attention economy. Understanding the new currency of business. Boston: Harvard Business School Press.

    Google Scholar 

  • Dolan, C., & Humphrey, J. (2004). Changing governance patterns in the trade in fresh vegetables between Africa and the United Kingdom. Environment and Planning, 36(3), 491–509.

    Article  Google Scholar 

  • Dukes, A. J., Gal-Or, E., & Srinivasan, K. (2006). Channel bargaining with retailer asymmetry. Journal of Marketing Research, 43(1), 84–97.

    Article  Google Scholar 

  • Eisenmann, T. R., Parker, G. G., & Van Alstyne, M. W. (2011). Platform envelopment. Strategic Management Journal, 32(12), 1270–1285.

    Article  Google Scholar 

  • Ernst & Young. (2015). Spotlight on profitable growth. Volume VIII Media & Entertainment. Available at: http://www.ey.com/Publication/vwLUAssets/EY-spotlight-on-profitable-growth-volume-VIII/$FILE/EY-spotlight-on-profitable-growth-volume-VIII.pdf.

  • Evans, D. S., & Schmalensee, R. (2009). Failure to launch: Critical mass in platform businesses. Review of Network Economics, 9(4), Article 1.

    Google Scholar 

  • Evens, T. (2013a). Platform leadership in online broadcasting markets. In M. Friedrichsen & W. Mühl-Benninghaus (Eds.), Handbook of social media management. Value chain and business models in changing media markets (pp. 477–491). Berlin: Springer.

    Google Scholar 

  • Evens, T. (2013b). Power play in television. A political economy analysis of power balances in broadcasting markets. Ghent: University Press.

    Google Scholar 

  • Evens, T. (2014). Co-opetition of TV broadcasters in online video markets: A winning strategy? International Journal of Digital Television, 5(1), 61–74.

    Article  Google Scholar 

  • Evens, T. (2017). Sports viewership goes down: What’s up for television sports rights? International Journal of Digital Television, 8(2), 283–287.

    Article  Google Scholar 

  • Evens, T., & Donders, K. (2013). Broadcast market structures and retransmission payments: A European perspective. Media, Culture & Society, 35(4), 415–432.

    Google Scholar 

  • Evens, T., Lefever, K., Valcke, P., Schuurman, D., & De Marez, L. (2011). Access to premium content on mobile television platforms: The case of mobile sports. Telematics and Informatics, 28(1), 32–39.

    Article  Google Scholar 

  • Fontaine, G., & Deirdre, K. (2016). Media ownership: Towards pan-European groups? Strasbourg: European Audiovisual Observatory.

    Google Scholar 

  • Gereffi, G. (1994). The organisation of buyer-driven global commodity chains: How U.S. retailers shape overseas production networks. In G. Gereffi & M. Korzeniewicz (Eds.), Commodity chains and global capitalism (pp. 95–122). Westport: Praeger.

    Google Scholar 

  • Gereffi, G. (1995). Contending paradigms for cross-regional comparison: Development strategies and commodity chains in East Asia and Latin America. In P. Smith (Ed.), Latin America in comparative perspective: New approaches to methods and analysis (pp. 33–58). Westport: Westview Press.

    Google Scholar 

  • Gereffi, G. (1999). International trade and industrial upgrading in the apparel commodity chain. Journal of International Economics, 48(1), 37–70.

    Article  Google Scholar 

  • Gereffi, G., & Fernandez-Stark, K. (2011). Global value chain analysis: A primer. Available at: http://www.cggc.duke.edu/pdfs/2011-05-31_GVC_analysis_a_primer.pdf.

  • Gereffi, G., & Korzeniewicz, M. (Eds.). (1994). Commodity chains and global capitalism. Westport: Praeger.

    Google Scholar 

  • Gereffi, G., Humphrey, J., & Sturgeon, T. (2005). The governance of global value chains. Review of International Political Economy, 12(1), 78–104.

    Google Scholar 

  • Hagiu, A. (2008). Multi-sided platforms: From microfoundations to design and expansion strategies (Harvard Business School Working Paper No. 09-115). Available at: http://www.people.hbs.edu/ahagiu/TSP_microfoundations_and_strategies_01062007.pdf.

  • Hald, K. S., Cordón, C., & Vollmann, T. E. (2009). Towards an understanding of attraction in buyer-supplier relationships. Industrial Marketing Management, 38(8), 960–970.

    Article  Google Scholar 

  • Helberger, N. (2007). Some critical reflections about access obligations under the European Communications framework. Communications & Strategies, 68(4), 191–202.

    Google Scholar 

  • Henten, A., & Godoe, H. (2010). Demand side economies of scope in bundled communication services. Info: The Journal of Policy, Regulation and Strategy for Telecommunications, Information and Media, 12(1), 26–38.

    Google Scholar 

  • Henten, A., & Tadayoni, R. (2008). The impact of the internet on media technology, platforms and innovation. In L. Küng, R. G. Picard, & R. Towse (Eds.), The internet and the mass media (pp. 45–64). London: Sage.

    Chapter  Google Scholar 

  • Hesmondhalgh, D. (2013). The cultural industries (3rd ed.). London: Sage.

    Google Scholar 

  • Hoelck, K., & Ballon, P. (2015). Competitive dynamics in the ICT sector: Strategic decisions in platform ecosystems. Digiworld Economic Journal, 99(3), 51–70.

    Google Scholar 

  • Hoelck, K., & Ballon, P. (2016). Broadcasting in the internet age: Survival of the fittest. Paper presented at the World Media Economics and Management Conference, New York, US.

    Google Scholar 

  • Hopkins, T. K., & Wallerstein, I. (1986). Commodity chains in the world economy prior to 1800. Review, 10(1), 157–170.

    Google Scholar 

  • Humphrey, J., & Schmitz, H. (2001). Governance in global value chains. IDS Bulletin, 32(3), 19–29.

    Google Scholar 

  • Jarvenpaa, S. L., & Loebbecke, C. (2009). Strategic management implications of a consumer value perspective on Mobile TV. Journal of Information Technology, 24(2), 202–212.

    Article  Google Scholar 

  • Kaplinsky, R., & Morris, M. (2002). A handbook for value chain research. Available at: https://www.ids.ac.uk/ids/global/pdfs/VchNov01.pdf.

  • Kowalkowski, C., Gebauer, H., Kamp, B., & Parry, G. (2016). Servitization and deservitization: Overview, concepts, and definitions. Industrial Marketing Management, 60, 4–10.

    Article  Google Scholar 

  • Küng, L. (2017). Strategic management in the media: Theory to practice. London: Sage.

    Google Scholar 

  • LeFebvre, R. (2017, October 11). Hulu makes it easier to find what’s on its live TV service. Available at: https://www.engadget.com/2017/10/11/hulu-easier-to-find-whats-on-live-tv/ (October 25, 2017).

  • Levy, A. (2016, October 27). Hulu is losing more money than it did last year. Available at: https://www.fool.com/investing/2016/10/27/hulu-is-losing-more-money-than-it-did-last-year.aspx (October 25, 2017).

  • Lotz, A. D. (2017). How “Game of Thrones” became TV’s first global blockbuster. Available at: http://www.salon.com/2017/07/16/how-game-of-thrones-became-tvs-first-global-blockbuster_partner/ (July 16, 2017).

  • Low, P. (2013). The role of services in global value chains. Hong Kong: Fung Global Institute.

    Google Scholar 

  • Meza, S., & Sudhir, K. (2010). Do private labels increase retailer bargaining power? Quantitative Marketing and Economics, 8(3), 333–363.

    Article  Google Scholar 

  • Miège, B. (2011). Principal ongoing mutations of cultural and informational industries. In D. Winseck & D. Y. Jin (Eds.), The political economies of media. The transformation of the global media industries (pp. 51–65). London: Bloomsbury.

    Google Scholar 

  • Mosco, V. (2009). The political economy of communication (2nd ed.). Thousand Oaks: Sage.

    Book  Google Scholar 

  • Otterson, J. (2017, September 17). Hulu carried to Emmys glory by eight wins for ‘Handmaid’s Tale’. Available at: http://variety.com/2017/tv/news/emmys-2017-hulu-handmaids-tale-1202557512/ (October 24, 2017).

  • Parker, G. G., & Van Alstyne, M. W. (2005). Two-sided network effects: A theory of information product design. Management Science, 51(10), 1494–1504.

    Article  Google Scholar 

  • Perez, S. (2017, September 19). Hulu’s new look and live TV service arrive on Roku. Available at: https://techcrunch.com/2017/09/19/hulus-new-look-and-live-tv-service-go-live-on-roku/ (October 25, 2017).

  • Pfeffer, J., & Salancik, G. R. (1978). The external control of organizations: A resource dependence perspective. New York: Harper and Row.

    Google Scholar 

  • Porter, M. (1985). Competitive advantage. Creating and sustaining superior performance. New York: The Free Press.

    Google Scholar 

  • Porter, M. (1996). What is strategy? Harvard Business Review, 40(6), 61–78.

    Google Scholar 

  • Prario, B. (2007). Mobile television in Italy: Value chains and business models of telecommunications operators. Journal of Media Business Studies, 4(1), 1–19.

    Article  Google Scholar 

  • Raikes, R., Jensen, M. F., & Ponte, S. (2000). Global commodity chain analysis and the French filière approach: Comparison and critique. Economy and Society, 29(3), 390–417.

    Article  Google Scholar 

  • Rochet, J.-C., & Tirole, J. (2003). Platform competition in two-sided markets. Journal of the European Economic Association, 1(4), 990–1029.

    Article  Google Scholar 

  • Rohn, U. (2004). Media companies and their strategies in foreign television markets. Instituts fur Rundfunkökonomie, Cologne. Available at: http://www.rundfunk-institut.uni-koeln.de/sites/rundfunk/Arbeitspapiere/187_04.pdf.

  • Schneeberger, A. (2017). Audiovisual services in Europe: Focus on services targeted at other countries. Strasbourg: European Audiovisual Observatory.

    Google Scholar 

  • Singer, M., & Donoso, P. (2008). Upstream or downstream in the value chain? Journal of Business Research, 61(6), 669–677.

    Article  Google Scholar 

  • Snyder, C. M. (2008). Countervailing power. The new Palgrave dictionary of economics. Available at: http://www.dictionaryofeconomics.com/article?id=pde2008_C000538.

  • Spangler, T. (2016a, August 8). Hulu ends free streaming service. Available at: http://variety.com/2016/digital/news/hulu-free-streaming-end-yahoo-1201832578/ (October 22, 2017).

  • Spangler, T. (2016b, August 3). Time Warner acquires 10% stake in Hulu for $583 million. Available at: http://variety.com/2016/digital/news/time-warner-hulu-investment-1201829514/ (October 24, 2017).

  • Steiner, R. L. (2004). The nature and benefits of national brands/private label competition. Review of Industrial Organization, 24(2), 105–127.

    Article  Google Scholar 

  • Sweney, M. (2017, January 5). Film and TV streaming and downloads overtake DVD sales for first time. The Guardian.

    Google Scholar 

  • Todreas, T. M. (1999). Value creation and branding in television’s digital age. Westport: Qorum Books.

    Google Scholar 

  • Tsotsis, A. (2011, January 8). Comcast-NBC merger: The Hulu rules. Available at: https://techcrunch.com/2011/01/18/comcast-nbc-merger-the-hulu-rules/ (October 24, 2017).

  • Varian, H. R., Farrell, J., & Shapiro, C. (2004). The economics of information technology. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Winseck, D. (2011). The political economies of media and the transformation of the global media industries. In D. Winseck & D. Y. Jin (Eds.), The political economies of media. The transformation of the global media industries (pp. 3–48). London: Bloomsbury.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. imec-mict, Department of Communication Sciences, Ghent University, Ghent, Belgium

    Tom Evens

  2. imec-SMIT, Department of Communication Sciences, Free University of Brussels, Brussels, Belgium

    Karen Donders

Authors
  1. Tom Evens
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Karen Donders
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Tom Evens .

Rights and permissions

Reprints and permissions

Copyright information

© 2018 The Author(s)

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Evens, T., Donders, K. (2018). Power to the Platforms. In: Platform Power and Policy in Transforming Television Markets. Palgrave Global Media Policy and Business. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-74246-5_4

Download citation

Publish with us

Policies and ethics

Search

Navigation