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Applying Concepts and Frameworks in the Digital Economy in a Context of Convergence

Applying Concepts and Frameworks in the Digital Economy in a Context of Convergence
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Copyright: 2015
Pages: 34
Source title: Developing Strategic Business Models and Competitive Advantage in the Digital Sector
Source Author(s)/Editor(s): Nabyla Daidj (Telecom Business School, France)
DOI: 10.4018/978-1-4666-6513-2.ch008

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Abstract

This chapter provides an overview of some aspects of the convergence context and concepts presented in previous chapters. The media sector and the main characteristics of the entertainment industry are described. Several elements are underlined: access, user-generated content, and a higher number of physical supports and electronic platforms. Key trends and developments in ICT industry are explored and main aspects of convergence are described: definitions of convergence, industry impact of convergence, and implications for firms' strategies. Indeed, technological and industrial convergence made possible by digitalization has changed the strategy of ICT companies and has accelerated the erosion of the existing frontiers between the media industries leading to the emergence of new actors (web giants, technology enablers, telecommunications operators, etc.). These compete directly with the “traditional” media players. These ICT groups have adopted different relational strategies to strengthen their activities in the field of entertainment and to achieve a sustainable competitive advantage.

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