Creating a sustainable business model for the TV industry : strategic analysis on the Smart TV ecosystem

Abstract

Over the past decades the revolution of electronic devices had a major impact in our everyday lives. The penetration of PCs and distribution of Internet made it easier to communicate with people around the world. The rise of smart phones changed many aspects of our everyday life, the impact ranging from alarm clocks to email consumption to video conference calls. The era of connected devices now trigger a radical change in an area that has not been disrupted over decades - the TV experience. By integrating the Internet into television sets, Smart TVs will allow consumers to use on-demand streaming media services, listen to Pandora Radio, access interactive media, use social networks, and download apps. In light of this industry change, several questions arise from the perspective of TV manufacturers. Can the Smart TV become a platform leader and create a sustainable ecosystem? What is the business model for TV manufacturers and how will they collaborate with other stakeholders? How will the smart TV create value for the customers and not get dis-intermediated? This thesis looks at factors that drive the industry change and identify challenges and opportunities to address. Overall, the thesis provides a strategic direction for television manufacturers.