Research@CATS - M&E

Media & Entertainment

Predicting the future of in-home video entertainment through a historical and economic analysis of turbulence in M&E.

The business of in-home video entertainment is undergoing massive transformation in production, distribution and industry structure. Tectonic changes have occurred in the last two decades, including multiple big media mergers, emergence and dominance of Netflix first as a content distributor and then as a content creator, and, conversely, launch of direct-to-consumer streaming services by major content creator firms. What core elements explain this turbulence, and what signals do they provide for the future of media and entertainment?

Ecosystem Management in Advertising-driven Platforms with External Contributors

This paper examines ecosystem management issues in multi-sided platforms that provide infrastructure to coordinate the activities and interactions of contributors, consumers, and advertisers, and which motivate external contributors through revenue-sharing of ad payments. It provides insights on how various platform design parameters interplay with content provision decisions of contributors and the revenue-sharing arrangement between contributors and the platform.

Bundling for Flexibility and Variety: An Economic Model for Multi-Producer Value Aggregation

A new business form that is increasingly prominent, especially in platform business models, is an economic structure in which value is co-created by multiple producers and aggregated into a common bundle by a producer-consortium or independent firm. Examples include in-home video entertainment, technology goods and services, multi-sourced data platforms, and patent pools. This paper develops an economic model to study demand, production choices, revenue-sharing, and relative market power in such markets. Beyond these specific questions, it provides an architecture to rigorously answer additional questions in platform competition, market power, and effects of industrial realignment.

Disney+ Challenge to Netflix

Interview at The Wired with Professor Hemant Bhargava

Professor Hemant Bhargava weighs in on Netflix’s future and preparedness as Disney plans launch of competing video streaming service.

Comcast Is Paying Up for Sky: Now What?

By most Wall Street measures, Comcast is overpaying for its acquisition of Sky, the British satellite TV, broadband and mobile services provider. When the U.S. cable giant announced last month that it had won the auction for a controlling stake in Sky by bidding $40 billion, shares of Comcast fell by as much as 8% intraday amid a slew of analyst downgrades. It now might have to pony up more money to buy Fox’s stake in Sky to get full ownership. “It’s an extraordinary price,” noted Mike Fries, CEO of rival telecom and satellite TV services provider Liberty Global, on Bloomberg TV.

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