Disruptions in the IDM Marketplace: Time-Shifted TV

Introduction

The growth of digital media and diffusion of broadband internet networks have resulted in a growth of online video, video on demand and Internet Protocol television (IPTV). Consumers now watch television programs on alternative platforms and devices, which have the potential to offer consumers more choice and flexibility. This innovation disrupts interactive the traditional broadcast television markets. It is also known as time-shifted television.

Time-shifted television consists of products and services, which enable viewers to watch television programs on demand. The convergence of digital technology and media has created new opportunities for creating value in the market place with digital content. Consumers can enjoy more choice and flexibility as to when and how they want to watch the television programs. Time-shifted television can also provide value added services, such as advertisement-free television programmes, which provide consumers with enhanced viewing experiences.

This chapter begins by providing an overview of time-shifted television as a disruptive innovation in the IDM marketplace. This is followed by a market overview for time-shifted television, which illustrates how time-shifted television has yet to cross the chasm and enter the mainstream market (Moore, 1991), despite having the potential to be a truly disruptive innovation. Subsequently, the business eco-system for time-shifted television is analyzed by using the SAD framework introduced by Sharma et al (2008) and the VISOR framework described by El Sawy et al (2005). Based on our analysis of the market, opportunities and challenges for time-shifted television, we will examine business models which can help time-shifted television to cross the chasm.