The platformisation of the audiovisual industry

Media markets are marked by the presence of two-sided market platforms. Television broadcasters intermediate between advertisers and viewers. However, the TV industry has evolved into a multi-sided market in recent years, with distribution platforms increasingly occupying a central position in the market. Whereas until recently their business models resembled that of utility providers, distributors start playing a multi-sided role, liaising with third-party content providers, advertisers and viewers. As a result, we might expect a struggle for platform leadership between TV broadcasters and distributors. This struggle is further intensified by the rise of over-the-top (OTT) TV platforms, which challenge existing power relationships in the TV industry and give rise to conflicts of interests in the media value chain. This paper attempts to provide a deeper understanding of the platformisation in the TV industry, by comparing the different types of platforms engaged in this platform competition. It is concluded that both broadcasters and distributors are transforming into integrator platforms. Moreover, we suggest that this struggle for platform leadership may prove counterproductive in the longer term and question to what extent this competition create mutual benefits for both broadcasters and distributors