Abstract
This chapter focuses on evaluating Internet protocol television (IPTV) business models from different service providers through the prism of the Star Model. The tool is based on Porter’s five forces, as developed by M.E. Porter. The Star Model extends the five Forces into a set of metrics to evaluate current and future business offerings. The Star Model is a simple tool used to identify the strengths and weaknesses of different business models in an appealing geometric shape. To highlight how to use this tool, sample partnership models are analyzed to evaluate the strength of a combined service. This tool will help IPTV service providers and all potential investors to build or identify a sound business model for their target market. The Star Model is explored through multiple case studies in this chapter including CBS, AOL, Google, Sling Media, and YouTube.
Key Terms in this Chapter
Multimedia: Voice, video, or data that is displayed on a variety of platforms.
Metrics: Quantitative and qualitative data that is organized and tabulated in an effort to analyze trends.
Internet TV: (1) Internet content that is displayed through a consumer’s television through a variety of vendors; (2) Television content delivered over the Internet.
Content Aggregators: Companies that use their resources in order to develop a library of content to sell to consumers.
Content Providers: Companies or corporations that provide content to consumers.
Business model: A tool highlighting the relationship between a set of elements in order to provide business logic to a company. Complete model may include statements on targeted customer segments, pricing models, and revenue models.
Porter’s Forces: Michael Porter’s Five Forces dissect factors that influence competition and economic influences among players in a market.
Star Model: A competitive analysis model used by a company to display the strengths and weaknesses over time, developed from Porter’s Five Forces.
Telco: (1) A company that provides telecommunications services, such as data, phone, or subscription television; (2) Common carrier, also known as an incumbent or local exchange carrier.
Internet Protocol (IP): A data level protocol utilized to transport information across a data-switched network.
Churn: The rate at which contractual customers choose to leave a supplier.
Internet Protocol Television (IPTV): Digital television content delivered through IP based networks.
Security: The strategy for protecting a business from ill-will, harm, or loss. A necessity for any telecommunications provider or consumer who relies on telecommunications to transfer important information.