Browsing by Author "Minder, Rolf-Moritz"
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- The Pay-TV Industry and the disruption by video-on-demand services : Germany vs. the USAPublication . Minder, Rolf-Moritz; Rajsingh, PeterCurrently, the US pay-TV industry is losing customers from a phenomenon called cord-cutting, whereas in Germany the market is stable and even increasing. Meanwhile, streaming services are generating high growth and putting pressure on the incumbents. This dissertation examines the reasons for opposite trends across the Atlantic. It explains incumbents’ strategies as a reaction to the disruption caused by video-on-demand services and the changing competitive environment. Qualitative and quantitative primary research, expert interviews and a German customer survey were conducted to complement the existing literature and data. The results showed differences in incumbent business models as US cable operators offer pay-TV, phone and internet services bundled together. Aside from that, free-TV dominates in Germany, resulting in a low willingness to pay for content. At the same time, US customers are accustomed to paying a premium for TV and, so, when faced with the choice between incumbents and new streaming services, are less likely to treat them as an add-on. To stay relevant and prevent missing out, incumbents must launch their own streaming services and increase the production of content, reacting to content creators entering the market. Sports content is difficult to replace and functions as a customer acquisition tool. Distinctions between the US and German VOD and pay-TV markets are useful for understanding business strategy and the multi-billion Euro entertainment market.