Are global over-the-top platforms the destroyers of ecosystems or the catalysts of innovation?. (July 2021)

• Record Type: Journal Article
• Authors: Shon, Minjung; Lee, Daeho; Kim, Jang Hyun
• Is Part Of: Telematics and informatics. Volume 60(2021)
• Publication Date: 2021-07
• Subjects: Global OTT platform -- Content production and distribution -- Stochastic frontier analysis -- Meta-frontier analysis -- Technical efficiency; Telecommunication -- Periodicals; Computer networks -- Periodicals; Télécommunications -- Périodiques; Réseaux d'ordinateurs -- Périodiques; 384
• DOI: 10.1016/j.tele.2021.101581
• Languages: English
• ISSNs: 0736-5853

Abstract

Highlights: It examines the impact of global OTT platforms on the local video industry. Specifically, it investigates the impact of the launches of YouTube and Netflix . It compares efficiency differences in production and distribution industries. It uses stochastic frontier analysis and meta frontier analysis. Abstract: Global over-the-top (OTT) platforms such as YouTube and Netflix are gaining great popularity worldwide. Although the entrance of global OTT platforms may undermine the growth of countries' local-related industries, it is also possible that imitation on the part of domestic content providers stands to create new OTT platforms or other opportunities for the growth of local content industries. This study examines the impact of global OTT platforms on the local video content industry in South Korea. Specifically, it investigates the impact of the launches of YouTube and Netflix on efficiency differences in local video content production and distribution industries through stochastic frontier analysis and meta-frontier analysis. Introduction of the global OTT platform had an impact on the domestic content industry, but there was a difference in growth according to the detailed classification industry, and the effect differed depending on the entered platform. Tobit analysis confirms that the effects of technological development and entry of global OTT platforms are significant on the technical gap ratio.