Value Networks and Changing Business Models for the Digital Television Industry

Industry architecture and business models in the broadcastingindustry are being increasingly transformed by digitization and conver-gence. While technology and policy have lowered entry barriers for new competitors in today’s media ecosystem, incumbents are deploying strategies for preserving market power and reinventing bottlenecks. Thisarticle analyzes the impact of digitization on industry architectures and emphasizes one of most obvious strategies deployed in the digital broadcasting industry, i.e. the development of conditional access systemsfor digital television content. It is argued that this strategy contrasts therise of open access platforms in other creative content industries such as in music.