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http://dx.doi.org/10.7236/JIIBC.2022.22.2.143

Evolution of OTT Service and Changes of Pay TV Industry  

Do, Joonho (School of Communication and Media, Sookmyung Women's University)
Publication Information
The Journal of the Institute of Internet, Broadcasting and Communication / v.22, no.2, 2022 , pp. 143-149 More about this Journal
Abstract
The diffusion of OTT service has brought the fundamental changes in the value chain of the existing media industry. OTT service based on the public Internet has increased the number of subscribers by using dominant marketing capability, making the pay TV platform player's ability to connecting users powerless. This study examined the changes in the media market and pay TV industry in the USA due to the diffusion of OTT service and analyzed the changing strategies of media firms. The number subscribers of the expensive pay TV service in the USA has diminished, experiencing cord cutting and cord shaving due the diffusion of OTT. OTT players are changing the media market, showing the dramatic excellence in making original contents and distributing the newly released movies. Examination of the recent merger and acquisition cases of media firms tells that the investment in making original contents has increased in order to have the competitiveness in OTT business. The future media industry will be rapidly reshaped mainly based OTT service and strategic judgement is important to maintain the competitiveness of all media firms in the existing value chain of media industry.
Keywords
OTT service; pay TV industry; original contents. media firm strategy;
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Times Cited By KSCI : 1  (Citation Analysis)
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