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Convergence and Substitutability between IPTV and Digital Cable TV on Subscribers

Inyoung Hwang 1 Park, J. Hun 2

1서울대학교행정대학원
2서울대학교

Accredited

ABSTRACT

Due to rapid convergence trends in the digital pay TV market, differentiation among the competing medias decreases and substitutability is increasing. The current study aims to explain the effect of service substitutability among competing media on the size of domestic digital pay TV subscribers. For the analysis, the Lotka-Volterra model, an ecological competitive diffusion model, was used to obtain the basic model for a simulation study. A simulation was performed by adjusting independent variables of substitutability to estimate the size of subscriber for particular media. The relationship between the digital cable TV and the IPTV is identified as a predator-prey relationship and the digital cable TV is found to be superior to the IPTV. The simulation results showed that the increase of convergence and substitutability result in the decrease of the entire media market. Especially, the IPTV is estimated to face the greatest loss in this context.

Citation status

* References for papers published after 2023 are currently being built.