The Strategic Role of Communication Standards for Media Companies

Hess, T; Köster, A; Matt, C (2016). The Strategic Role of Communication Standards for Media Companies. In: Lugmayr, A; Stojmenova, E; Stanoevska, K; Wellington, R (eds.) Information Systems and Management in Media and Entertainment Industries. International Series on Computer Entertainment and Media Technology (pp. 83-99). Springer https://doi.org/10.1007/978-3-319-49407-4_4

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Standards setting has gone from being a technical concern for individual companies to being a factor with important strategic implications for cooperation and competition among market players. The strategic issues raised by this development include the formation of competitive advantages by promoting standards or preventing their diffusion. In Sect. 1 of this chapter, we discuss the economic interpretation of standards from a descriptive perspective by drawing on the closely related issue of positive network effects, which induce a self-enhancing cycle and lead to a widespread adoption of the standard. In Sect. 2, we highlight standards setting as a competitive weapon for media companies. Standards act not only as a precondition for compatibility across technologies and systems, but can also be used to generate incompatibility and customer lock-in effects. Thus, we examine standardization strategies and tactics for horizontal competitors in the digital media industry. In Sect. 3, we view standards as a strategic instrument for cost reduction in media companies by describing a normative decision model for the economic selection of standards, referred to as the standardization problem.

Item Type:

Book Section (Book Chapter)

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute of Information Systems > Information Management
03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute of Information Systems

UniBE Contributor:

Matt, Christian

Subjects:

000 Computer science, knowledge & systems
300 Social sciences, sociology & anthropology > 330 Economics

ISBN:

978-3-319-49405-0

Series:

International Series on Computer Entertainment and Media Technology

Publisher:

Springer

Language:

English

Submitter:

Patrick Cédric Munz

Date Deposited:

12 Mar 2018 11:51

Last Modified:

18 Oct 2018 15:29

Publisher DOI:

https://doi.org/10.1007/978-3-319-49407-4_4

URI:

https://boris.unibe.ch/id/eprint/105694

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