Information Technology Reference
In-Depth Information
Chapter 15
Strategic Moves Related to
Broadband Diffusion on the
French VoD and TV Market
Nabyla Daidj
Telecom Business School, France
Pierre Vialle
Telecom Business School, France
ABSTRACT
The launch of triple-play services, including IPTV can be considered as a “critical event” having a strong
structural impact on the market. In this paper, we analyse the evolution of the VoD supply in France, and
in particular the effect of the launch of IPTV systems. Firstly, the launch of attractive triple-play offers
has induced a strong development of the French broadband Internet access market, which in turn has
resulted in the entry of numerous players in the VoD market. Secondly, the adoption of IPTV system has
changed the competitive and strategic positioning of main players in the VoD value-chain, thus inducing
or amplifying strategic moves along this value-chain. In particular, we show how the diffusion of IPTV
systems has induced a switch from complementary convergence to competitive convergence
INTRODUCTION
al., 1997; Vialle, 1998). In fact, it is only recently
that the actual patterns of convergence can be ob-
served and analysed (i.e. Vialle, 2007). According
to Greenstein & Khanna (1997), convergence may
include competitive as well as complementary
dimensions. Different views on this issue have
been expressed. For example, while Collis et
al. (1997) have evoked a competition scenario
based on substitution between actors and services,
Chan-Olmsted & Khanna (1997) have focused on
a complementary convergence scenario based on
differentiated services and infrastructures.
The emergence of the so-called multimedia indus-
try, based on the expected merging of three vertical
industries (telecommunications, computing and
the media) into a new horizontally layered one,
raised tremendous interest at the end of the 1990s.
There was a great deal of conjecture about how
this new industry would be structured and what
types of players would be successful in positioning
themselves in this emerging value chain (Collis et
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