Competitive Strategies in Korea Mobile Television Markets: A Comparative Analysis of Mobile Operators and Television Broadcasters

Sylvia M. Chan-Olmsted, Sangwon Lee and Heejung Kim

Abstract:

This paper examines the competitive strategies in the South Korean mobile television market between two leading contenders, TV broadcasters and mobile phone service providers. Specifically, the differences in adopted strategies between the two sets of competitors and factors affecting these strategic behaviors are scrutinized. The nature of rivalry between the two historically separated competitors offers insight on how firms with inherently different resources, industry conditions, and business models might compete in the era of convergence.

Introduction

The mobile phone has grown to be a major new medium in the last decade, surpassing the penetration rates of both broadband Internet and cable TV in many countries. The deployment of advanced non-voice mobile applications like mobile TV presents an attractive business opportunity for traditional media companies such as TV broadcasters that are urgently seeking opportunities from emerging media platforms and mobile service providers that are desperate in search of new killer applications to recuperate their network investment. In fact, the emerging mobile TV platform forms a converging marketplace where the two historically separated groups of companies directly engage each other for the first time. The nature of rivalry between the two competitors offers insight on how firms with inherently different resources, industry conditions, and business models might compete in the era of convergence.