Digital Convergence

DIGITAL AVATAR- The Strategies for Digital Convergence

099018609

University of Leicester

8/26/2010


Digital Avatar- The Strategies for Digital Convergence

Student Number: 099018609

August 2010

Dissertation submitted to the University of Leicester in partial fulfilment of

the requirements for the degree of Masters of Business Administration

(MBA-Full Time) Sep 2009-2010

MBA Dissertation by Student no. 099018609 Page 2


DIGITAL AVATAR- THE STRATEGIES FOR DIGITAL

CONVERGENCE

TABLE OF CONTENTS:

CONTENT PAGE NUMBER

Cover page……….……………………………………………….……………………1

Title Page………………………………………………………….……………………2

Table of Contents……………………………………………………………………..3

Acknowledgements ………………………………………..............................8

Executive Summary………………………………………………..………………11

Chapter 1

1.1 Introduction for dissertation………………………………………………..14

1.1.1 Scene Setting: The making of Digital Avatar……………………….…14



1.2 Changing Market Place………………………….................................15

1.3 Objective of the Research …………………………………………………..19

Chapter 2……………………………………………………………………………20

2. Literature Review…………….……………………………………………………20

• 2.2.1 Literature Review on Digital Convergence…..…………………21

• 2.2.2 Literature Review on Strategy Perspective….…………………25

• 2.2.3 Literature Review on Strategic Alliances………..………………26

• 2.2.4Literature Review on Bundling…………………….………………34

• 2.2.5Literature Review on Integration Strategy………..……………43

• 2.2.6 Emerging Questions: Research Questions ………….…………49

Chapter 3……………………………………………………………………………51

3. Research Methodology……….…………………….……………………………51

Chapter 4

4. Data Analysis: Views on transformation of Digital Avatar………….....57

4.1 Data Analysis –Strategic Alliance……..……………………………………57

• 4.1.1 Strategic Alliances- Nature of strategic alliance..................59

• 4.1.2 Strategic Alliance & cross-media participation………………..71

• 4.1.3 Social Marketing due to Strategic Alliance……………………..78

• 4.1.4 Telcos seek a solution through Strategic Alliance…………….81



• 4.1.5 Conclusion………………………………………………….………...88

4.2 Data Analysis -Bundling Strategy………………………………………….89

• 4.2.1 Attractiveness of Bundling…………………………………………90

• 4.2.2 Bundling strategy to retain customer base………….………..98

• 4.2.3 Bundling eases audience hyper-targeting……………….……104

• 4.2.4 Conclusion……………………………………………………….….107

4.3 Data Analysis -Digital

Integration…………………………………………………………………………109

• 4.3.1 Integrate to create synergies……………………………………110

• 4.3.2 Organisational challenges with Integration Strategy……….120

• 4.3.3 Marketing Communication currently is disintegrated………122

• 4.3.4 Conclusion………………………………………….……………….127

Chapter 5…………………………………………………...........................128

5.1 Discussion: Analysing the transformation of Digital Avatar…………128

• 5.2 Discussion over critical review of Digital Convergence…….…129

• 5.3 Discussion over Bundling Strategy……………………………….130

• 5.4 Discussion over Strategic Alliance………………………………..137

• 5.5 Discussion over Integration Strategy…………………………….140

• 5.6 Conclusion of Discussion……………………………………………..144



Chapter 6…………………………………………………………………………147

6.1 Recommendations……………………………………………………………147

6.2 Limitations of the research…………………………………………………151

6.3 Conclusion of Dissertation: Digital Avatar transformed...………….153

Chapter 7………………………………………………………………………….156

7.1 Bibliography……………………………………………………..……………156

7.2 Conferences attended………………………………………………………182

7.3 References of Interviews.........................................................183

7.4 List of Websites Accessed………………………………………………….185

Chapter 8

8. Appendix………………………………………………………………………189

Annexure 1: Contents of the DVD ………………………………………………….……189

Annexure 2.1: Profile of 20 Senior Professionals interviewed………………190

2.2 Complete set of questions………………………………………………………………201

2.3 Sample of Consent Form…………………………………………………………………205



2.4 Consent Form……………………………………………………………………………………207

2.5 Supplementary Charts……………………………………………………………………..210

2.5. a) Thematic Chart for Strategic Alliance ………………………………………210

2.5. b) Navigation Chart of key strategies ……………………………………………211

END………………………………………………………………………………….212



ACKNOWLEDGEMENTS

I am pleased to offer my sincere thanks and heartfelt gratitude to my

supervisor, Professor Steve Brown for his constant support, guidance and

motivation to successfully complete the dissertation. I can‘t stop myself

from saying that it would not have been possible without Professor

Brown‘s dedicated mentoring and encouragement. Professor Brown‘s

vision, immaculate thought process greatly helped me refine my ideas

and organize the emanating views into the carefully drafted dissertation.

My sincere thanks to the module leaders, faculty and staff members of

the School of Management, University of Leicester for imparting their

valuable knowledge and extending their continued support to make this

year an enlightening experience for me.

I have always had a passion for communications industry and thank the

opportunity to serve this industry for 7 years of my life, as a news

presenter and finance news journalist. Towards my contribution to the

academic world, I am highly obliged to present this dissertation to the


prestigious University of Leicester and thank the University for giving me

this opportunity to gain knowledge and conduct this research. As a

responsible professional, I take the opportunity to state that I will be

obliged to offer my contributions to the University of Leicester even in the

future.

I am highly obliged to the 20 Senior Professionals who have given me

their precious time and valuable information, without which this

dissertation would not have been successful. I hereby offer my gratitude

to: Andrew McGrath, Executive Director (Commercial), Virgin Media ;

John Denton, Managing Editor, TV Platforms, BBC London;

GiulianoStiglitz, CEO, Orange Advertising (USA) & Global Sales Director

(UK), Orange-FT; Tim Hussain, Head of Mobile & Video Advertising,

BSkyB; Paul Cowan, VP, New Ventures, Syncapse Ltd.; Eric Elia, VP, TV

Solutions, BrightcoveInc; Tom Weiss, CEO, TV Genius Ltd; Harry Strasser,

Executive Partner - Digital Convergence and Innovation, Germany; Peter

Brimacombe, Former Vice President- Strategy at Disney UK- now an

independent consultant, London; Penny Power, Director, Ecademy UK;

Aaron Bogucki, Senior Digital Campaign Manager, Universal Music; Adam

Field, Head of Social Media, Media Contacts UK; Carolyn Morgan,

Managing Consultant, Penmaen Media; Oli Shaw, Digital Director, Oli, UK;

Triona Campbell, Company Director of CR Films Entertainment, Ireland;

Paul Armstrong, Social Media Director, Kindred Agency Limited; Craig



Elder, Online Communications Editor, Conservatives; EndafKerfoot,

Thinker-in-Chief, Brand New Adventures UK; Jack Willis, Accounts

Manager, Marketing Grin, UK and Edmund Chambers, Key Accounts

Manager, Affiliate Window, UK.

I offer my special thanks to the world of academia and the scholars who

have contributed to the fundamental research about digital convergence

and allied strategies that this dissertation has made an attempt to

research. I also offer special thanks to my parents and sister Vartika for

their constant support, guidance and encouragement.



EXECUTIVE SUMMARY

The 21st century is fast integrating the world‘s media, telecommunications

and information technology and online industries under a single platform.

Globally the communications industry is undergoing a transformation

owing to technological advancement and massive investment flows in the

aforementioned four industries, leading to revolutionary changes in the

digital eco-system. This dissertation researches the digital convergence

phenomenon that has been brought about by coming together (and clash)

of the eco-systems of four industries- media, telecommunications,

internet and technology. Such converging (and diverging) business

objectives are building interesting scenarios where vicious competition

and intense inter-dependence are co-existing. In order to capitalize

the separate yet converging business interests, the digital convergence



industry calls for a strong strategic orientation to mentor the change. The

biggest strategic issue concerning the Digital Convergence

industry is the challenge to capitalise on the newly-emerging

distribution mechanisms of information flow. This dissertation

analyses the strategies to encash the potential benefits of

distributing content across the multiple-platforms that has been

created by the digital confluence of the four industries. The key

strategies responsible for bringing around the Digital Convergence

transformation are Strategic Alliance, Bundling and Integration and have

been explored in this dissertation. Based on a qualitative research

methodology, views from a carefully selected sample of 20 highly-

influential professionals (media & communications industry) have been

compiled over in-depth interviews and data has been analysed using

thematic analysis. The dissertation observes that a creative combination

of the three strategies has a tremendous potential to lead the digital

convergence industry towards creating converged communication

applications that can transform human lives. Though in the current

circumstances, issues over digital rights, existence of a standard metric

for performance evaluation, skilled talent to meet the burgeoning demand

and user-privacy concerns still remain unanswered. But, once these

barriers are crossed, digital convergence can have a powerful impact on

the way the world communicates and interacts. To a consumer, digital

convergence would mean an enhanced digital experience, easier


applications and convenient multiple-access to information. Convergence

transcends the geographical and physical barriers of providing information

to innovate services and applications to a point where almost

everything - and everyone - is connected.Such is the impact of

digital convergence that its omnipresence reaches the user at

their point of location.



CHAPTER 1

INTRODUCTION

1.1 Scene Setting: The making of Digital Avatar

Coming together of media & entertainment, telecommunications and

information technology (abbreviated as IT hereafter) and the online industries

are transforming the communications landscape by offering digitally

converged solutions. Rapid technological advancement combined with

massive investments flows buoyed under deregulation and globalisation

ushered a revolution in the digital communications space. This strategic

transformation called - Digital Convergence implies the blurring of

boundaries between the four industries. It offers easy-to-use, value-

added digital solutions at cost-effective rates and faster pace, marking a

paradigm shift towards a globallyintegrated digital omnipresence.



This strategic transformation is addressed in the title of the MBA

dissertation as ‘Digital Avatar-The Strategies for Digital

Convergence’…..a transformation unfolding. ‘Avatar’ meaning

‗metamorphose: transformation‘ (Collins English Gem

Dictionary, 1966:325). 'Avatar' implies ‗transformation of a single soul‘, is

originally a word from Sanskrit language and hails its origin to Hindu

mythology. But now, the word ‘avatar’ has gained wide acceptance in

English language. Evidence of a global familiarity to the word ‘avatar’ is

well documented in a recent Hollywood movie (James Cameron's science-

fiction epic, 2010) by the name ‘Avatar’ (2010). The Title of this

dissertation hence implies ‘avatar’ as transformation of traditional

communication practices to its present form of converged digital version.

Hence ‘Digital Avatar’ is the dissertation analysing the strategies

for bringing about a successful and sustainable Digital

Convergence.

1.2 Changing Market Place

The stages that have led to the transformation of digital convergence

have left an impact with the passing of each era of the time-line. The

first phase (1970s-1990s) of the current millennium affected traditional

print business with the substantial growth of online applications, with

advertising revenues diverting to the emerging online players. Even the



wave of electronic commerce (e-commerce) applications hit the retail-sales in

the high-street stores. Traditional players like newspapers and magazines

struggled to survive on subscription revenues amidst decreasing

newsprint demand. Among them, the only survivors were the specialist

segments- like financial news content, lifestyle magazines (example: fine

wine, fashion, travel et cetera). The second phase (mid-1990s) witnessed an

explosion of mobile communication. The online media continued to grow

in this time-period and did not much affect the television players.

Currently, the third phase (year-2000 onwards) is transforming itself

boosted by high-speed net connected TV. It means a bright side for

internet and media content producers but pose a tough challenge to the

current distribution channels, namely telecom, satellite and cable carriers

and the broadcasters.

But interestingly, amidst this transformation, increased customer focus

and value-addition remain the driving factors in the heart of digital

convergence. Applications like smartphones, on-the-move communication

devices have become digital life-lines (those which can be used without fixed-

lines example: Apple iPad). Traditional newspapers and magazines continue to

see a dwindling growth unless they form strong strategic alliances with

online business models or are recognised as strong brands names like

Forbes, Time etc. The transformation will mark some players emerging as

movers and shakers of the changing landscape, giving nervous times to



the traditionally dominant players. The new dawn will see niche players

(like Google and Facebook) who would completely change the rule of the

game-posing a stiff competition to the existing business models. There is

a shift in the level playing field. Digital Convergence is paving way to

interesting business solutions to converge, compete and change the

digital eco-system. This calls for a strategic perspective to manage and

monetise the convergence. Hence, this dissertation critically analyses the

three key strategies- namely- strategic alliance, bundling and integration

that are closely responsible in bringing about this digital transformation.

Digital convergence will come with a lot of

pride, discontent, politics, human emotions and a clash. A clash of

titans of the four competing industries-

media, internet, telecommunications (mobile) and technology (IT)-

will be like strong tectonic plates colliding. Highly competitive digital

world will give way to smart business solutions, innovative

integration amidst the power struggle of colliding business interests

over content and revenues. During this evolutionary phase, there is a

constant battling on the level playing field with new entrants threatening

existence of traditional old players or at times, the old playing joining hands

with new-age business to promote mutual gains.



Digital Hot Spots of the World

Source: 2009 World Factbook cited in World Digital Media Report (Deloitte and Touche, 2009)

Description: This picture reflects the level of global participation over digital

access. Countries like USA, UK, Canada and most parts of Europe are found to

be most active participants. While, parts of Africa, Latin America, Vietnam et

cetra are found to still catch up the connectivity to log on to the world of

digital experience.



1.3 Objective of the Research

This dissertation will critically analyse the strategies to build creative

combinations of competing digital technologies. Success in mastering

digital convergence can be gained by balancing the right strategies,

maintaining high-standards of quality and using an effective pricing

strategy. The channels of distribution like- internet, mobile and mobile

applications, television, cable distributors have become significant players

in this emerging eco-system. But the most challenging strategic issue in

the evolving business model is the question of monetization of profits

over newly emerging distribution mechanisms.The transforming digital

eco-system is caught between questions over form of effective business

model, nature of agreement within business models, pricing strategy and

evaluates the techniques for seeking cross-functional participation. This

dissertation conducts a detailed evaluation of the strategies that can be



used by digital convergence industry to unleash an unprecedented

consumer experience and monetise emerging business opportunities.

CHAPTER 2

2. LITERATURE REVIEW

This part of the dissertation explores and empirical evidence based on

past literature to evaluate the applicability of the three key strategies –

Strategic Alliance, Bundling and Integration, considered in this

research.



Organisation of Literature Review

The literature review for this dissertation is discussed under the following categories:

2.2.1. Digital Convergence giving a Strategy Perspective and discussing Moore‘s Law

2.2.2. Strategic Alliance

2.2.3. Bundling Strategy

2.2.4. Integration Strategy

2.2.4 Literature Review on Bundling Strategy

Bundling can be defined as a typical pricing strategy to offer two or more

products (goods or services) that are available for purchase as one single

product (Guiltinan, 1987; Gaeth et al., 1990 and Semonin, 1995). Product

bundling has attracted increasing interest from researchers mainly within

the fields of economics and marketing. Bundling is seen as a device

for leveraging market power from one good to another (Whinston,



1990) cited in (Saligner, 1995:85). It helps in reducing competition

through differentiation (Carbajo et al., 1990; Chen, 1997).

Cost-saving aspect under bundling makes it a profitable strategy well

applicable to most telecommunications companies product/service offers

cutting across voice, video or internet access. Product bundling strategy

involves retailing several identical products in a single package at a

reduced unit price (Adams &Yellen, 1976). Bundling can also be

categorized as pure or mixed, with pure bundling referring to bundles

where the individual products cannot be purchased individually and mixed

bundling referring to bundles where the individual products can be

purchased both as single products and also as part of the product bundle

(Adams and Yellen, 1976).

Adams and Yellen (1976) argue that mixed bundling at least weakly

dominates pure bundling. (McAfee et al., 1989) suggest that while mixed

bundling virtually always strictly dominates pure bundling, the optimal

bundle price is sometimes greater than the sum of the prices of the

individual goods cited in (Saligner, 1995:86). Schmalensee (1984) was

one of the first authors who discussed bundling in a context that

fits the characteristics of e-commerce, described the phenomenon

of heterogeneous buyers’ taste in a monopolistic market. He

assumes the marginal-utility for the second (reproduced) good to be zero

for all buyers. Study by Bakos&Brynjolfsson (1996, 1997, and 2000)


analyzed why information goods can be sold with higher profits as

bundles. Companies build customer-experience around the product

by bundling-strategy as a means of selling potentially separable

components to customers, as integrated system or ‘bundle’,

usually by collaborating with their B2B partners (Porter,

1985:425). Core-product and services are sold as a bundle (example:

Software-hardware maintenance package). This implies, marketers should

combine sales-leadership and deliver specialized-service.

For example: Ericsson collaborated with Vodafone to create highly

customized solutions for commercializing the new generation 3-G mobile

system technologies offering convergence-benefits to consumers (Davis

et al., 2007:186).

Bundling as a profit Strategy:

Paid content on the web advanced only from the

year-2000 but compelled the academic thinking to

analyze the effect of competition on bundling

strategies of firms that sell information goods.

Bundling entails cost savings, product complementariness, enlarged scope

of profitability, high costs and positive correlation of valuations (Salinger,

1995) and creates entry-deterrence (Nalebuff, 1999).


Complementors(example: Microsoft and Intel) increase the value of each

other's offerings and the size of the total market. However, discord can

develop in many areas, such as pricing, technology, standards, and

control of the market, both in terms of which company has the most

influence over customers and which one gets the biggest slice of the pie.

The issue of pricing perfectly captures this tension in a bundled

offer. Ideally, the pricing will be pegged higher than

complementor’s price. The first step in managing relationships with

complementor‘s is ‗to develop a deep understanding of their economics,

strategies and goals, their existing capabilities, their incentives for

cooperation, and any potential areas of conflict, then, to gain an upper-

hand‘ (Yoffie&Kwak, 2006:88-98).

Now-a-days, unbundling strategies are moving towards quadruple

play by incorporating mobile on top of home wire-line products. For

example: NTL-Telewest in the UK bought Virgin to develop a new

quadruple play company called Virgin Media. The advantage of

‘unbundled’ sales is the vendor’s ability to obtain the highest

price for each component product from individual

buyers, whereas bundling can increase seller's profit by

extracting more consumer surplus by reducing the heterogeneity

in buyers’ reservation prices (Adams and Yellen 1976;

Schmalensee, 1984) cited in (Häubl, 2010:110-115).



On contrary, (Ware &Dippon, 2010:54-64) analyse that communications

network are subject to unbundling at different levels for different services.

Assessing the cost-benefit of unbundling is complicated because of

convergence and competition among the video, wireless and telephone

providers. While, bundled products/services marketers aim for cost-

effectiveness and strive for better control over their promotional toolset

(Silva-Risso et al., 1999) cited in (Foubert et al., 2010:880),(Stremersch

and Tellis, 2002; Hanson and Martin, 1990). Unbundling of networks can

add disincentive to investment in new infrastructures when it may be

cheaper to make use of regulated access to the existing national telecoms

network (European Union, Green Paper, 2007).

Another stream of analyses has focused on how bundling affects

competition. Economists such as Schmalensee (1984), McAfee et al.

(1989), Saligner (1995) and Armstrong (1996) demonstrate that bundling

may lead to effective price differentiation. Bundling can also act as a

mechanism of market foreclosure, creating concern of anti-competitive

behaviours cited in (Foubert et.al, 2010:880).

Information goods are presumed to have very low marginal costs. Chae

(1992) has analyzed a subscription TV market where bundle is used due

to economies of scope in distribution technology, pricing and production

decisions of a supplier. Bakos and Brynjolfsson (1999) have discussed the

pricing and profits when marginal costs are negligible and customers have


identically distributed valuations. They have shown that pure bundling of

large numbers of goods is optimal. Chung and Sirbu (1999) established

that mixed bundling is the dominant strategy. Wu et al. (2008) solved the

customized bundle pricing problem in which consumers are allowed to

choose up to N goods from a larger pool of J goods by considering the

trade-off between offering more choices and incurring greater menu cost.

Fana et al. (2009) analyzed the bundling of a software product with a

delivery and maintenance service cited in (Yang, 2010:473).

Lack of Standard Metric

Another important yet unexplored area of pricing for digital content is the

lack of standard metric to evaluate financial performance of digital

content. Distorted revenues, costs and share prices have been matched

by the unreliability of the financial metrics that companies have adopted.

The executives of companies conducting business over the Internet have,

conveniently, downplayed traditional measures of profitability and

economic value.



Instead, they [executives of internet companies] have emphasized expansive

definitions of revenue, numbers of customers that might someday

correlate with revenue [such as numbers of unique users (reach), numbers of site

visitors, or click-through rates]. Creative accounting approaches have also

multiplied. Indeed, the internet has given rise to an array of new

performance metrics that have only a loose relationship to economic

value, such as pro forma measures of income that remove ‗non-recurring‘

costs like acquisitions (Porter, 2003:4).

‘The dubious connection between reported metrics and actual profitability

has only served the confusing signals about what has been working in the

marketplace. The fact that those metrics have been taken seriously by the

stock market has muddied the waters even further. For all these reasons,

the true financial performance of many internet-related

businesses is even worse than has been stated’ (Porter, 2001:5).

However, (Bennison, 2009) points out that Google Analytics is a software

tool to measure the success of your digital marketing has been available

for a few years since the advent of Google Analytics is free to set up.

[Analytics software measures the website‘s performance]. But this may

not be successful in evaluating true-economic value of digital content

(Bennison, 2009).

Freemium Model



The internet customer is accustomed to free information.

(Swatman et al., 2006:64)

Some of the new-age thinkers researched the significance of Freemium

strategy to target the paid user of content. In a ‗Freemium‘

(free+premium) model, products/services are offered in free basic and

paid premium versions (Andersen, 2009b).

The word freemium is created by combining the two aspects of the

business model: free and premium (Heires, 2006:36). Freemium model

works by offering basic web services like basic digital content in a

downloadable format for free while charging a premium for advanced or

special features.

The business model has gained popularity with Web 2.0 companies and is

popular for making advertising revenues by targeting the potential paid

customer (Heires, 2006:36). The freemium model is especially relevant in

the case of digital media (internet) companies, where the creation of

revenue streams is often most perplexing because of customer

expectations that basic services should be free.

Digital content measures include straight usage statistics, the Impact

Factor, the Eigen factor and newer metrics that begin to take into account



the linkages and interdependencies that characterize modern,

interdisciplinary research. Though in the 1980s, Ives et al., (1983), Davis

(1989), Baroudi and Orlikowski (1988) and Doll &Torkzadeh (1988)

developed a number of general-purpose measures of success of

information systems. However, these measures are too general purpose

for benchmarking. In addition, ‗they all focus on benefits from the point

of view of individual users as stakeholders, not management‘ cited in

(Shang, 2000:1).

Bundling occurs often where there is a strong and large-scale change

agenda, through peer pressure scope for providing cheaper alternatives

with limited resources (Willcocks&Oshri, 2009). Bundling strategy being a

pricing strategy usually comes under the regulation scanner. The most

notable contributions to the literature exploring the regulation of a

monopolist that screens its consumers include Sherman &Visscher (1982)

and Srinagesh (1986) who examine the effects of rate-of-return

regulation on two-part tariffs and Besanko et al. (1987, 1988), who study

the regulation of a quality- differentiated monopolist. However, Bakos and

Brynjolfsson (2000) showed a non-monopolistic environment of

competition for information goods.



2.2.5 Literature Review on Integration Strategy

Vertical integration refers to a firm‘s ownership of vertically related

activities (Grant, 2008:350). The assumption behind theory of vertical

integration is reduction in transaction cost and attainment of market

share by taking over the competitors (Ahn&Litman, 1997:13). It is useful



to concentrate on the core-competencies to help the firm assemble its

news production and broadcast capabilities to experience a better vertical

integration of its resources. This move will also create barriers to entry for

the firm (Prahalad& Hamel, 1990).

Benefit of Integration:

Empirical evidence on market dominance has been established by

integrating advantages and challengesof one player that are bred

into that of the other to create increasing market integration as studied

by (Veugelers et. al, 2001; Rondi et al.,2003; Rondi and Vannoni, 2005,

DeVoldere et al., 2004) cited in (Belderbos et al.,2009). Past studies

suggest that vertical integration is a way of increasing a firm's value-

added margins for a particular chain of processing from ultra raw

materials to ultimate consumers. Research by (Arrow, 1975; Coase,

1937; Williamson (1969, 1971, & 1975) noted integration economies

gained from shared facilities, information, or other resources cited in

(Harrigan, 1985). Adelman (1949), Bork (1954), and Kaserman (1978)

recognized the market power conveyed by this strategy, but the analyses

they employed in studying it were static (Harrigan, 1985:398). The aim of

an integration strategy is to accomplish a commanding position within

all stages of the value-chain to secure the largest possible market

domination for the players involved. Porter suggests the other way to

achieve advantage is strategic positioning—doing things differently from


competitors, in a way that delivers a unique type of value to customers.

This can mean offering a different set of features, a different array of

services, or different logistical arrangements. It creates operational

efficiency advantages. Operational effectiveness can take myriad forms,

including better technologies, superior inputs, better-trained people, or a

more effective management structure (Porter, 2001:10).

Every economic revolution redefines the roles and relationships on which

offerings are based. This was true during the industrial revolution when

technological breakthroughs in the application of energy to useful work

made possible the factory system with its highly specialised division of

labour (Norman &Ramírez, 1993:2). As an outcome, integration results

in creating more value per person (customer, supplier and employee) and

in securing greater total profit from and for its financial and human

resources than all but a handful of other companies in any consumer

industry (Norman &Ramírez, 1993:4). The result is an integrated business

system that invents value by matching the various capabilities of

participants more efficiently than was ever the case in the past (Norman

and Ramírez, 1993:4). The availability of digital information highways, in

commerce will give consumers fast and increased access to a vast

selection of goods and will also cause an evolution from retail channels to

electronic markets. The virtual products offered will be ordered on-screen



and delivered direct to the home (Magretta, 1998; Ghosh, 1998) cited in

(Wirtzab, 1999:19).

The change from an industrial to an information society connected there

with will above all else be affected by the dynamics of technological

developments (Wirtzab, 1999). This change has been bolstered by birth of

internet. The internet came as a strong force. This disruptive force broke

down the concentration of power from the hands of a few, to the hands of

many. Andersen (2009a:3) asserts, ‗there have never been a more

competitive market than the Internet, and every day the marginal cost of

digital information is drastically reducing‘. In most upstream

telecommunications markets, incumbents are subject to a number of

obligations, including a requirement not to engage in ‗undue‘ price and

non-price discrimination. However, enforcement of non-price

discrimination is inherently difficult. In light of this, considerable academic

literature has focused on the ability and incentives of a vertically

integrated operator to engage in non-price discrimination. By putting

downstream rivals at a disadvantage, a vertically integrated operator is

able to capture a higher share of the downstream profits (Crocioni, 2007:

464). Further, (Yoffie, 1997) predicts that consumer multi-media industry

will change from three vertical businesses to five horizontal segments and

suggests that content providers are in the strongest position to prosper,

while hardware companies face limited prospects. New information



technologies are divisive in allowing such a flexible, adaptive model to

actually work (Castell, 2000:177). Digital technology allowed the

packaging of all kinds of messages including sound, images & data- a

network was formed that was able to communicate its nodes without

using control centres (Castell, 2000:45).

Lack of vertical integration may lead to a reduction in quality

(Economides, 1996:22). By 2011, the world will witness truly interactive

television that will interface consumers, communications, content and

commerce into a seamlessly flow to and from other devices (Friedman,

2010). With vertical integration one can be an efficient producer. But

virtual integration makes one efficient and responsive to change at the

same time (Dell, 1998) cited in (Magretta, 1998:7). More opportunities

also mean more uncertainty and greater risk. Forecasts based on

projections from the past become unreliable. Factors that have always

seemed peripheral turn out to be key drivers of change in a company's

key markets. Invaders from previously unrelated sectors change the rules

of the game overnight (Normann and Ramírez, 1993:65-8).

Economides &Woroch (1992) find that vertical disintegration is not

desirable for the firm that offers end-to-end service. Once disintegrated,

its constituent parts realize lower total profits (Economides, 1996:22).

The lessons of networks can be applied to industries where vertical

relations play a crucial role; conversely, the economic and legal learning


developed in the analysis of vertically-related industries can be applied to

network industries (Economides, 1996:4). In so in a competitive

environment, strategy is no longer a matter of positioning a fixed set of

activities along a value chain. Increasingly, successful companies do not

just add value, they reinvent it. Their focus of strategic analysis is not the

company or even the industry but the value-creating system itself, within

which different economic actors - suppliers, business partners, allies,

customers work together to co-produce value (Prahalad, 2008) cited in

(Leavy, 2008). Their key strategic task is the reconfiguration of roles and

relationships among this constellation of actors in order to mobilize the

creation of value in new forms and by new players. And their underlying

strategic goal is to create an ever-improving fit between competencies

and customers. To put it another way, successful companies conceive of

strategy as systematic social innovation: the continuous redesign of

complex business systems (Prahalad, 2008).

The literature review has identified some gaps. Despite the

enthusiasm building around digital convergence, significant factors like

regulation, standards, nature of business model, changing customer

requirements and management of dynamism in the industry remain

ignored. Little attention has been paid to the true total costs for

convergence were looming indirect costs may threaten to overpower the

benefits of cost reductions attained under Moore‘s law. It calls for a



standard metric of evaluation of real-growth in the digital convergence

industry. This real-growth parameter would remain unaffected by the un-

real digital exuberance. This dissertation has made an attempt to analyse

these issues in the Data Analysis section.

Strategic
Alliance

Bundling

Integration

2.2.6 Emerging Questions

Based on the critical review of the empirical study of the phenomenon of

digital convergence and strategies to compete in the converging market,

a series of unanswered questions have sparked up. The greatest concern

for the digital convergence industry is the search for a strategic

mentorship to suggest ways to monetise the benefits of the coming

together of multiple-channels of distribution. It calls for a tremendous

change on the strategic canvas by companies seeking competent


alliances, opting for a competitive pricing strategy to value real-growth

and integration of the multiple platforms, currently working in silos.

Hence, the major questions that structure the article and the theory

making process are:

Main questions for research

Strategic Alliance: In the face of digitally changing ecosystem, does the

strategic alliance help the companies to evolve more competent in the

digital interface?

Bundling: Does the pricing strategy of bundling emerge out successful to

the players of the digital era? How do you see the relevance of unbundled

content being priced?

Integration: How can companies efficiently integrate heterogeneous

applications with so many businesses so as to be mutually benefiting all

business capacities? What are the strategic implications of such a business

process for today‘s managers who are setting the scene for digital

convergence to unleash its potential?



CHAPTER 3

3.0 RESEARCH METHODOLOGY

This part of the dissertation emphasises on the research methodology

employed for this dissertation. The dissertation is based on a qualitative

research methodology followed by a thematic analysis of the data

collected. Qualitative approaches are incredibly diverse, complex and

nuanced (Holloway and Todres, 2003), (Argyris et al., 1985) cited in

Bryman and Bell (2007:428) and thematic analysis is seen as a

foundational method for qualitative analysis (Braun et al., 2006:78).

Thematic analysis is firmly compatible with both essentialist and

constructionist paradigms within psychology (Braun et al., 2006:78).The

interviews conducted are an account of in-depth perspective on the

questions that emanate from the critical review of past studies evaluated

in the literature review. Thematic analysis is a method for identifying,

analysing and reporting patterns (themes). Thematic analysis organizes

and describes the data set in (rich) detail (Braun et al., 2006:79).



The focus of the dissertation is to analyze the real problems within the

digital convergence industry and weigh them against the strategies that

are reflective of the most recent changes in the digital landscape. It aims

at suggesting a practical solution that can prove beneficial to the digitally

converging industry. The dissertation is based on strong theoretical

foundations of strategic management and aims to arrive at findings that

have practical implications Bryman and Bell (2007:428). The objective of

this dissertation is to seek effective digital strategies that can offer a

competitive edge to a company in this industry.

Why qualitative research methodology?This dissertation research has

been conducted using the qualitative research methodology as the

objective of the research is to capture the emerging views from the

carefully selected group of interviewees. The author chose a qualitative

research method as it facilitates theoretical mapping of views and extract

the emerging thinking from the data into meaningful information.

Qualitative research also potentially enhances managerial knowledge by

providing best-practice information as most participants have expressed

their practical experience in the digital interface.

Why Interviews? The ethnographic interview is a commonly used

interviewing process employed by research-clinicians (Kuehl& Newfield,

1991). It gives an opportunity to emerging ideas to be identified in

observable patterns. It is here that role of thematic analysis is brought


into view. Thematic analysis focuses on identifiable themes and patterns

of living and/or behaviour. The interview can be a combination of closed

ended and open-ended questions (Bryman& Bell, 2007:213). Further, it

has been highly advantageous to conduct the interviews from the

carefully selected set of respondents as the interviewees are highly-placed

senior professionals from the media and communications industry. These

respondents represent the decision-makers across the four industries that

reflect the theme of digital convergence across- Media,

Telecommunications, Internet and Information Technology. Further, the

respondents have been interviewed in-detail over a fairly well distributed

time frame over each of the questions asked by the author. It has been a

commendable opportunity for the author to use the seven-years of rich

work-experience as a broadcast media journalist into the art of

interviewing & analysing and interpreting the emerging patterns.

Face-to-face interview gives the freedom to the interviewer to encourage

the interviewee to respond and develop a comfort level with the questions

put up. Further, the author‘s personal experience in interviewing is the

importance of eye-contact in face-to-face interview. Hence, based on the

validity of importance of capturing emerging thinking from the data-set

ad based on strong background of professional experience, this

dissertation has chosen Qualitative Research Methodology: Semi-

structured interviews using a standardized interview protocol for each



interview would be conducted with focus groups. The semi-structured

interviewees, in this dissertation analysis will be the senior/managers in

digital media, communications, and telecommunication, entertainment &

IT industries. The above mentioned industries are rapidly witnessing a

digital transformation and hence are expected to be a part of close review

of this study.

The candidates were first emailed a copy of the dissertation synopses,

complete set of questions and the consent form at least 2-4 weeks ahead

of the interview. They were requested for a convenient time of 45-60

minutes for conducting the in-depth interview. A total of 20 in-depth

interviews (face-to-face and a few over Skype call) were conducted. The

average duration of an interview was 30-50 min to 85-90 minutes. Only 2

interviews are on specific questions and range for 10 minutes. All

interviews have been recorded on a digital voice recorder (Olympus

VN5500PC) and professionally transcribed for the total duration. (All

transcripts are attached in Appendix).

Research Setting:This dissertation is a reflection of the most dominant

factors for changes in digital landscape in advanced, emerging and

developing markets for digital content.



The data is collected from well-established players that represent the

largest companies in the 4-industry confluence. Most of the data is

collected from companies based in London (UK). But there are highly

valuable contributions of views from industry leaders from Cambridge

(MA), Toronto, Germany and Dublin.

Data Collection- The data had been collected from highly-credible

sources by conducting in-depth interviews of 20 of the responsibly placed,

senior professionals (media & communications industry) between June

2010 and July 2010. The objective of the interviews has been to capture

the views on research questions from the sample that reflects the

diversity of experience in witnessing, managing and deciding the future of

digital convergence. Apart from the interviews, a wide range of journals,

publications, reports, trend have been referred. Apart from them, the

author has attended 3 Conferences on digital media (between March-July

2010) at London. This has been useful to gain meaningful insights into

the latest indications in order to throw a deeper analysis over this

dissertation. Selection of the topic of digital convergence also finds a

reflection into the minute observation of changing trends, gained over 7

years of work-experience into the media industry. The areas covered in

the interviews include verbal-discussion on the firm's perspectives on

technology evolution in the digital convergence industry, major drivers



and barriers to the adoption of digital technologies, impact of competition

and detailed focus on the 3 strategies explored in this dissertation

Data Analysis-The data has been analysed using thematic analysis

process where key patterns have been categorised under– strategic

alliance, bundling and integration. The data analysis involves a rich inter-

weaving of emerging perspectives of the interviewees who maintain

influential positions in their organisations and are at the helm of decision-

making and retain powerful positions in their respective organisations.

The emerging thinking is summarised by extracting details of information

that run across the data and not within each participant.



Data Analysis

Data Collection 20 Qualitative In-depth interviews

Data Immersion
Identification of common
Data Reduction themes, patters, emerging thinking from
the interviews

Data Processing
Identification of Strategic
Alliance, Bundling and Integration to be
Analysis
propelling forces to drive the Digital
Ecosystem

Systematic Data Collection Flowchart

(Created by the author)

CHAPTER 4



4.1 Expert’s Views on transformation of Digital Avatar



Digital convergence is what has emerged from the pace of technological

changes in the era of technological dynamism. This convergence is

sustained by the fundamental co-existence of the three strategies- strategic

alliance, bundling and integration (vertical and horizontal), interplaying to make

digital convergence a reality. This part of the dissertation captures the

emerging picture that emanates from the data collected, defining the

prominent trends attained from the set of interviews over the next-

generation strategy canvas.

This part of the dissertation conducts a thematic analysis to capture the

emerging picture that emanates from the data collected from 14 (out of

total of 20) senior media professionals who have been interviewed by the

author during qualitative data-collection stage. The objective of this stage

of the dissertation is to capture the common positions, points of

differences by cross-linking the thoughts of participants. Adoption of

strategic alliance as a strategic management tool has been supported by

14 participants. The seven major themes arising emphasise that strategic

alliance helps in content sharing by developing smart partnership,

achieves core-competence and cost-optimisation and balance of power

relations under strategic alliance that lead into mutually beneficial

relationships. It leads to achieve cross-media integration, pursue social



marketing and such alliances are proving to save the telecommunication

companies to adopt lucrative business models for revenue-growth.

4.1.5 Conclusion for Data Analysis on Strategic Alliances

Final observations lay out that digital content users needs and demands

are fast rising up creating a pressure on companies to evolve

personalised and customised products and services. So, this is putting a

pressure on specialization of the content. While at the same time, the

industry is experiencing massive convergence with the coming together

of four industries- Media, Telecommunications, Web and Technology.

Digitally converging eco-system is hence, fragmenting as quickly as it's

converging with the two forces playing against each other with equal

consistency. Therefore, it may be concluded that the emanating digital

ecosystem will bring with it the fundamental complexities, however, a

strategic perspective will give rise to benefits of competencies and

collaborations flow out both to consumers and industry players.



4.2 Data Analysis on Bundling Strategy

4.2.4 Conclusion

The road to content-distribution is witnessing more and more options

available. It can be observed that bundling is one of the ways of getting



the content to the user. But much of profitability from bundling depends

on the nature of business models adopted. So, digital media

companies have the power to exercise a balance between the

economic-trade off from bundling and unbundling. Companies

have the choice to select the route that best fits the regulatory

requirements. Further, the companies need to adapt bundling as a

sensible-pricing strategy and not a mere price-strategy as today‘s

empowered consumer is highly price-conscious. Further, there is no

dearth of differentiated products in the digital market place and

consumers may change their choices over price-sensitive behaviour

unless the brand value is the sole reason for their choice. So, effective

bundling of emerging new technology with apt strategy is expected to

offer a better consumer experience.



4.3 DATA ANALYSIS –Digital Integration



4. Integration Strategy

Digital convergence is changing the world of the media industry with

advertising revenues streaming into print media and TV, radio and the

internet. Growth of internet has boosted digital convergence by creating

integrated platforms. Integration strategy is particularly useful for those

players who build up this competence either in-house, organically or by

gaining competence through joint-ventures or acquiring companies.

However, there remains a problem of managing the diversity of

applications. With infrastructure capacities building up, integration

between telecom competence and IT competence is growing. Hence,

companies are trying to use integration strategies by knowing their

customers and understanding the allied business partners. This part of

the dissertation presents the emerging thinking of 13 (out of total of 20),

senior media professionals who have been interviewed by the author

during qualitative data-collection stage. The three major themes identified

in this section are employment of integration strategy to create inter-

platform synergies, develop skill sets and achievement of integrated-

marketing communications. These outcomes help in positioning in the

mind of the consumer and also harness better revenues for the company.



4.3.4 Conclusion

Integration strategy pays digital media companies to retaining clients, win

new business and add value to the business proposition. Recent trends

indicate involvement of social media in proving to be a successful

integrating factor. Integration of dying traditional media with digital

applications creating online versions has come about as a survival factor

as well. Digital Integration compels synergies of separate media platforms

to promote converged business interests positively impacting the revenue

streams. However, challenges remain with integrating different skill-sets

to have in-house quality employees well versed with both technology and

creativity to serve well the three screens- mobile, television and internet.



CHAPTER 5

5. DISCUSSION

5.1 Analysing the transformation of Digital Avatar

This part of the dissertation discusses the emerging thinking from the

qualitative data collected in light of the empirical evidence in the Literature

Review. The emanating views are discussed in the context of phenomenon of

Digital Convergence lead by the strategy perspective of the digital

renaissance and Moore‘s Law. The discussion focuses on the three main

research parameters - strategic alliance, bundling and integration. It is

observed that due to the digital convergence, there is a massive change

happening in the global media, communications and entertainment industry.



This change is celebrated by advantages of cohesive existence of four key

industries- web, TV, media and information technology. But at the same

time, the landscape of business faces critical conditions due to clash of

multiple-objectives of the four industries.

The discussion section is organised as per the following:

5.2 Discussion over critical review of Digital Convergence

5.3 Discussion over Bundling Strategy

5.4 Discussion over Strategic Alliance

5.5 Discussion over Integration Strategy

5.2 Discussion over critical review of Digital Convergence

Digital Convergence is the potential field for effective interplay of the

three strategies explored in this dissertation. The phenomenon of Digital

Convergence is driven by Moore's law that acts as a roadmap for the

competitiveness of the industry. Moore‘s law provides the guideline to the

industry to create a faster stream of faster, better, and cheaper high-

technology products. The literature review acknowledges the influence of

Moore‘s Law of the current state of the industry. Empirical studies support

Moore‘s Law that technological performance will double every two years.

During data analysis, the views by participants evaluate their practical



experience in the industry to confirming the existence of the impact of

Moore‘s Law. Hence, as observed in the Data Analysis, views of

some of the industry leaders reflect an agreement with the

literature on empirical evidence of Moore’s law. The empirical study

suggests that moore‘s law will define the pace of changes in the digital

interface. So, this discussion considers that empirical study is in line with

research observation. The theory stands true to the actual phenomenon

of digital convergence witnessed in the real world.

5.3 Discussion over Bundling Strategy

One of the biggest issues that have been observed in the data

analysis is the co-existence of strict divergence and strong

preference for bundling as a successful strategy in the world of

digital convergence.

While some of the participants admit that they have to resort to bundling-

strategy under competitive pressures, some call it a necessary evil.

However, it is observed that most businesses are following a bundling

strategy both for bundled-pricing and bundled-content. But a resistant

view by some participants has brought to sharp notice that with digital

convergence space evolving and may lead to unbundling for some

sections. Further, it has been identified that there is a need for a better



pricing mechanism to manage digital content still needs clearer strategy

from price-implementation. Both Paul Cowan and John Denton have

emphasised on the need for a pricing model from a digital standpoint to

match the need and growing scale of operations. This observation is

analysed against the literature review on bundling. The literature review

emphasises that bundling strategy for price, tends to extract more money

from consumers. Whereas, unbundling strategy is employed to obtain the

highest price for each component product from individual buyer. However,

research scholars warn the businesses of the difficulty in evaluating

pricing of unbundled converged digital products. Sale of operations and

innovation can make bundling a responsive strategy.

It can be inferred that as the empirical evidence offers a loose correlation

between unbundling strategy and its success in most cases. However, some

business-models that cater to the specialized segments (like iplayers, on-

demand TV etc.) are likely to adopt an unbundled pricing strategy. But most

business that cater to digital experience for mass-consumers may continue

with bundling strategy due to pressure of competition. Moreover, the

economics of bundling drives the companies to offer bundled solutions and

this trend is likely to continue.



However, this discussion would suggest that it may be advisable for the

company to conduct cost-benefit analysis before adapting a bundled or an

unbundled pricing strategy. This means, the company needs to well

understand the economics, goals, existing capacities and offer prices

before deciding the convergence partner. Though, bundling does promote

cost-effectiveness. Literature suggests that bundling reduces service

provider‘s costs through simplified management and scale economies. So,

with a combination of better pricing model with right bundling,

organisations can achieve ambitious targets through risk-mitigation.

Further literature suggests that as bundling where there is a strong and

large-scale organisation. So, bundling will further create competition

through peer-pressure, resulting in cheaper alternatives with limited

resources. However, bundling is flanked by regulatory regulations as

inferred from the views expressed Example: BBC‘s Kangroo bundled offer

was flanked by competition commission‘s regulatory guidelines.

It can be summarised that for digital convergence, neither mandatory

bundling nor mandatory unbundling would be successful, but rather the

decision would emerge from the factors like- price offer, costs, benefits,

sustainability, business objectives. So, both bundling and unbundling

as a strategy can be interpreted to co-exist in the digital

convergence space- giving space to mixed-bundling offers. Mixed-



bundling allows the consumers to purchase individual products as well as

bundled products.

Secondly, a gap has been identified between the current

performance evaluator and desirable metric to measure digital

convergence. The need for and ideal performance measure arises from

the observation that the metric should have high correlation real economic

growth, Views expressed by many participants have expressed a

consistency f concern that the digital convergence industry is facing the

problem of lack of a statistical tool to measure content.

Empirical study by (Porter, 2001) says that the current metric for

evaluation of digital performance has a lower correlation to real-growth.

Hence, in a significant observation, this dissertation recognises a strong

dichotomy between the existing evaluation and the real-growth indicator

that should be in practice. This presents a wide disparity of thoughts

between the literature and actual experience of industry leaders. The

views of the candidates reflect a tone of complain over absence of a

standard metric to evaluate financial performance of the digital content.

(Porter, 2001:4) lambasts the current practices of internet-based

companies discouraging them from continuing with the performance

indicators that is loosely correlated to the economic-value. This

observation reminds of the exuberant show of the dot-com companies in



year-2000, soon after which what came blatantly was the dot-com burst.

This discussion observes that there may be a serious need to develop

more reliable and economic-value indicating performance measures for

the digital value evaluation.

So, the author observes an immediate need of having in place a real-

indicator for digital content and evaluates the true-performance. This

could go a long way in saving the digital convergence industry from any

unfortunate denting due to improper evaluators. The growth in the in

industry will be large. So the more realistic it remains, the better will be

its repercussions the multiple-stakeholder-

consumers, investors, companies, suppliers, vendors, software

providers, hardware providers et cetra of the four competing industries-

Media, Telecommunications, Internet and the Information Technology.

It further can be interpreted that absence of a real-indicator is the reason

for failure of cross-media targeting mainly from advertising point of view.

As the advertisers are wary of value of digital content potential and so

fear investing their capital and trust, over a cross-media platform. This

could be the reason why integrated marketing communication has yet to

take off in the digitally converging eco-system. So, there is a need for a

statistical measure in the first place so as to set the stage for



effective hyper-targeting.It may be noted that better measurement

tools to evaluate website‘s performance (number of visitors, traffic

sources, pages visited etc.) may be important for companies to find their

customers. It would also help to measure the marketing attempt to

respond to cross-media advertising rather than traditional advertising

over television, press and radio advertising. Further, literature can be

explored considering the impact on non-measurable scale on marketing

profitability. Some of this observation has been carried on by the author

over the ‗Recommendations‘ section of this Dissertation on Page Number

149.

Thirdly, based on the diversity of views expressed in the data, it has

been observed that some participants (Endaf, Harry Strasser, John

Denton) suggest that bundling is in principle a smart strategy and

amidst challenges, bundling works in favor of customer retention

and can work well with a freemium offer.

Empirical evidence suggests that a seller‘s profit perspective is sometimes

ignored in a bundled offer. Studies by (Adams and Yellen, McAfee,

McMillan) have shown that, optimal bundle price is sometimes greater

than the sum of the prices of the individual goods. So, profit of the seller

is reserved in a bundled offer. Hence, it can be interpreted that bundling

keeps in mind the profit perspective for the seller. So, it may be inferred



that the view of the participants interviewed is in line with the empirical

evidence on bundling. It gives a much clearer understanding reasons for

digital media companies to offer bundled packages of goods and services.

Moreover, companies are giving out a free-offer (freemium offer) with

their bundled packages. It is realised that an attractive pricing strategy

impacts marketing, financial and overall organizational strategy and

directly impacts customer retention.

The literature also reveals the existence of bundling strategy in a multi-

product monopolist setting. But it is observed that digital convergence is

changing the face of the industry and so are the power-relations changing

from a monopoly setting on to a competitive setting of many such players

offering widely differentiated bundles.

But, with the coming on internet, concentration of power has distributed

into many hands. There is a call for a level playing field. So, further

research can be carried out to capture the implications of bundling

strategy in a non-monopoly setting. Hence, this dissertation indicates an

area for future research that will give a better understanding about the

limitations of practicing a bundling strategy in a digitally converging eco-

system.



5.6 Conclusion of Discussion

What is emerging out of the discussion is that the digitally convergent

company will have the benefits of core-competence through strategic

alliance, have a better price-strategy in place, and imbibe on vertically

integrated technology and skill-set on adequate application of the three

strategies discussed in this dissertation. It can be identified that bundling

makes strategic and operational sense but a trade-off must be exercised

between offering a bundled or an unbundled package depending on the

business circumstances.

Secondly, this dissertation reaches to a conclusion that in the times

ahead, digitalized content will be available in two sets. The traditional

bundled or unbundled models will exist. But in order capture a larger

consumer base, they may align with a freemium offer. That is offering a

free service for the targeted paid user. Digital content or product/service

will exist in both differentiated and undifferentiated formats. The

differentiated content offered by premium products. People will be

prepared to pay for thispremium content over whatever platform it might

be. Secondly, undifferentiated or free content will exist to act as a tool to

gather advertising revenues.



For example, Rupert Murdoch‘s pay wall model charges the reader for

the premium content offered by The Times. Such content would be a

value-added one with focus on high quality offer. It will open scope and

competition battle for premium content producers for whom attaining

the brand position would be a compelling factor. On contrary, Google

news is an undifferentiated content and will be available for free. The

free content model is accessible by innumerable users and will be

passed on to readers for free. Such a model will be heavily dependent

on advertisement revenues and will not build up brand positions among

content distributors.

Smart partnerships in forms of strategic alliances will exist but

they may maintain selective openness based on the business

objective. Strategic alliance will further nurture the companies for

maintaining core competence. However, careful balance of power between

the entities will run across carefully protecting the ownership rights and

intellectual property issues.

Finally, the issue of transiting to the changes in the integrating

marketplace are a bit of challenge for organisations to embed them as a

successful change management. Convergence will call for changes in the

organisational context. It implies changes in the in the traditional pattern

of running company to integrating new solutions and that too at a fast



pace, so as to gain from timing the market appropriately. A lot of

emphasis on participation and innovation will need to be invoked. Each

organisation will have to promote and encourage their own employees to

contribute to innovation and offer solution ideas. Good amount of training

will have to be imparted to encourage right ways of innovation. Large size

companies will have an opportunity to grow bigger. But, digital

convergence gives an opportunity to small or medium sized smart

companies to build up a strong market share and that too in a

comparatively short span of time. So, companies need to have good

competent management team and commit to smart investment

strategies.

CHAPTER 6

6.1 RECOMMENDATIONS



Based on a critical observation, this dissertation suggests some

recommendations that may be observed by the digital convergence

industry and the world of academics.

This dissertation stresses on such a research to be considered so as to

avoid unreal growth of irrational exuberance from misleading the limping

global markets. As predicted, the digital market will grow multi-fold.

So, it is highly essential for the growth to be real and not an outcome

of irrational exuberance. Lessons from past reveal that unfortunate

events such as the dot-com bubble burst (1995-2000s), global financial

meltdown (2008-9) have emanated due to improper evaluations of

growth performance. Such incidents have left behind a trail of painful

spill-over effects on the world.



The dot-com boom of the 1995-2000‘s reminds of the over-dependence on

un-real and speculative-growth indicators that ultimately left distressing

repercussions leading to crash of the building exuberance. Similarly, if

the digital convergence growth is not measured on real-growth

indicators, it may be feared to lead into un-real digital-growth

exuberance. By this, the author implies that if digital convergence

growth is not measured on growth indicators that reflect real-growth, it

may not give the accurate growth position of the industry. If the

fundamentals of this growth-achievement are not sustainable, it

could be feared to lead to a digital-exuberance crash.

This finding can be considered to be of an alarming nature as

management of this digital growth story calls for immediate attention.

This observation gains support from empirical study by (Porter, 2001: 4)

in his Harvard Business Research study which suggests that a the existing

financial performance indicators currently practiced in the industry do not

fully correlate to their economic value. Thus, financial performance of

digital potential needs to be related to its true economic value. At the

same time, this gap could be further investigated by research scholars

emphasising the nature, need, digital profiling of the key indicators. The

author suggests this could be investigated from a quantitative data



analysis point of view as it could be more relevant to establish a

hypothesis based research.

The following are the two Hypothesis suggested by this dissertation:

Hypothesis 1: Is the existing metric a reflection of economic value of

the performance of digital content?

Hypothesis 2: Is the new metric a reflection of true economic value of

digital content?

These are some suggested research questions that may be useful

to future researchers:

1. From the digital profile data (based on number of clicks, user

profile, time-spent etc.), can a good performance indicator stand true to

reflect economic-value of digital content?

2. How trustworthy are the current performance indicators-like- Google

analytics, straight usage statistics, the Impact Factor, the Eigen factor

and newer metrics.

3. What are the latest findings of the researchers towards having a

comprehensive measure of performance indication?

4. Can the new metric (that may be getting developed at the moment)

separate performance exuberance from real economic value?



5. Does the finding differ from academic literature that dismisses the

fact that existing evaluators are anywhere consistent to true value?

6. As digitally converging market is an emerging market, a study can be

done specifically on monitoring performance indicators for emerging

markets.

So, the author observes an immediate need of having in place a

real-indicator for digital content and evaluates the true-

performance. This could go a long way in saving the digital

convergence industry from any unfortunate denting due to

improper evaluators. The growth in the industry will be large. So the

more realistic it remains, the better will be its repercussions the multiple-

stakeholders- consumers, investors, companies, suppliers, vendors,

software providers, hardware providers etc.- of the four competing

industries- Media, Telecommunications, Internet and the Information

Technology.



This realisation is like the tip of the iceberg to foreseeable but real problem

for future. The author urges this observation to be treated with immediate

effect so to have the real-growth picture, before the news stories on ‗digital

convergence bubble burst‘ or ‗good-bye digital exuberance‘ make headlines

on daily newspapers, through TV into our living rooms or click on the

internet. This observation emerges out of a comparison of the empirical

evidence in the literature review with emerging thinking of participants.

Based on this understanding and analysis of outcomes of un-real growth, this

dissertation realises that if powered by unreal growth, digital burst could be a

reality if not handled well.

6.2 Limitations of the research

Digital Convergence is all pervasive. The applications are vast and may

have industry-specific trends. This dissertation has captured some of the

most remarkable trends that capture the convergence effect in 4 key



industries namely- Media, Telecom, Internet and Information Technology.

However, there are specific industries like – online book publishing, small

scale business networks, online charity institutions, online education

industry that may have a different approach towards the markets.

Further, areas of national defence, satellite communication for

surveillance, weather monitoring, data monitoring of the governments,

use of digital content on clinical and health industry may have more

protected and conservative approach. The strategies explored in this

dissertation may not apply to such specific industries. It has been beyond

the scope of this dissertation to address the typical scenarios in typical

cases.

It can be observed that importance of digital convergence and its

applications is growing massively around the world. But it is realised that

there still exists a digital divide based on the net- penetration, impact and

growth of Digital convergence. For example, in UK, USA, China, Korea the

digital convergence is at its full boom, but countries like-Vietnam, parts of

Nigeria may still be affected with lack of digital interface. This dissertation

is however in line with advanced, emerging and developing markets for

digital content. Further, this dissertation is an academic paper and effects

of digital convergence on industries related to gambling, adult content,

black-economy stand beyond the scope of this research document.



6.3 Conclusion of Dissertation: Digital Avatar transformed…

There will be challenges opening up galore as the 4 titans of the industry

that compete to converge. This research has made an attempt to explore

the strategies involved in digital convergence. What may be essential to

note is that organisations will have to be receptive to the changes in the

digital landscape to take the opportunities and challenges thrown open.

The top-management teams in the organisation may need to constantly

revalue the strategic alliances, bundling strategy and integration effects

to maintain the pace of desired changes. Innovation may be encouraged

to emanate from multi-levels in organisation. This means the companies

will have to motivate and encourage their employees to think about

adding value to their tasks. At the same time, the employees will have to

be trained to render cross-media functioning. The next era will be

earmarked with even more competition, further indulgence in price-cuts

and product differentiation. So, to the digital media companies have to be

well prepared and equipped adapting a forward-thinking approach to

position themselves in the minds of the consumer. The age will be of easy



application solutions and greater consumer engagement.As the digital

convergence industry witnesses a new boom, a right balance of the

strategies explored in this dissertation may prove beneficial to witness

multi-platform interaction of the channels of distribution. This could create

further clarification to the current challenge of monetization of profits for

the digital convergence companies. Further, the empirical evidence and

the analysis suggest that the integrated approach, well balanced with

strategic partnership could have a cost-optimizing effect on the industry.

Consciousness in the industry to create a new metric for measuring

performance could provide an opportunity to weigh, balance and improve

the real growth in digital performance. The new digitized world could

witness more of cloud computing, social media applications in business

alliance, growth of mobile application economy. On the applications side,

further efficiency can look upon smart-home applications, security and

improved surveillance equipments, and advanced forms of navigation –

for all forms of transport. Even digital devices would witness a high level

of improved application with touch screen television, high-definition TV,

out of home digital applications; digital billboard advertising could be on a

rise with software being used as a service application.

However, in this transforming landscape, inter-industry clash will grow

denser with integration amidst fundamental changes brought by strategic

changes. The digital convergence space will promote open innovation as



there could be more integration happening between web (internet) and

TV. Mobile and Internet at the moment are fighting a bitter battle as

revenue streams are diverting to internet companies. Internet connected

TV will pose fresh challenges to the existing players in the current decade.

Internet companies like Google will get Android applications on the TV by

forming strategic alliance with technology providers like Intel and Sony.

As the digital story unfolds to a new dawn, it will engross the curious

users with a captivating digitalized experience that will ensemble

everyone to watch the new ‘Digital Avatar- The Strategies for

Digital Convergence’.....a transformation realised.



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Silverthorne, S. (2006) ‗Developing a Strategy for Digital Convergence‘

Harvard Business School Lessons from the Classroom, Published: July 17

Shang, S. (2001) ‗Comprehensive Framework for Classifying the Benefits

of ERP Systems‘ presented at Americas Conference Department of

Information Systems, Department of Information Systems, The University

of Melbourne, March

Shapiro, C. and Varian, H. (1999) Information Rules: A Strategic Guide to

the Network Economy Boston: Harvard Business School Press



Short, S. (2007) ‗Digital convergence: strategies for growth: Data from

interactive media and new distribution channels is crucial for product

development and marketing‘ Teradata Magazine-December Available

online at

http://www.teradata.com/tdmo/v07n04/Features/DigitalConvergence.asp

x (accessed 12.07.10)

Shy, O. (2001) The Economics of Network Industries New York:

Cambridge University Press

Silverman, D. J. (2006) Interpreting qualitative data London: Sage

Silverthorne, S. (2006) ‗Developing a Strategy for Digital Convergence‘

Harvard Business School Working Knowledge July 17, pp. 1-2

Singh, N., Bartikowski, B. &Dwivedi, Y. (2009) ‗Global megatrends and

the web: convergence of globalization, networks‘ ACM SIGMIS Database

40(4):14-27

Stahl, F., Schïfrac, M. and Wolfgang, M. (2004) 'Strategies for Selling Paid

Content on Newspaper and Magazine Web Sites: An Empirical Analysis of

Bundling and Splitting of News and Magazine Articles' International

Journal on Media Management 6(1): 59-66



Stephen, L. (2004) ‗Fuzzy Market Structure and Differentiation‘ in Picard,

Robert G. (eds.) Strategic Responses to Media Market Changes Jonkoping,

Sweden: Jonkoping International Business School pp. 83-95

Stremersch, S. and Tellis, G.J. (2002) ‗Strategic Bundling of Products and

Prices: A New Synthesis for Marketing‘ Journal of Marketing 66:55-72

Swatman, P., Krueger, C., Beek, K. (2006) 'The changing digital content

landscape: An evaluation of e-business model development in European

online news and music' Internet Research 16(1):53 - 80

Thirumalai, S. (1997) ‗E-Convergence: A Review‘ of Competing in the Age

of Digital Convergence Boston, MA: Harvard Business School Press

Thompson, S. E. and Parthasarathy, S. (2006) ‗Moore's law: the future of

Si microelectronics‘ Materials Today 9(6)

Tilson, D., Lyytinen, K. &Sørensen, C. (2010) ‗Desperately Seeking the

Infrastructure in IS Research: Conceptualization of ―Digital Convergence‖

as the Co-evolution of Social and Technical Infrastructures‘ in 43rd Hawaii

International Conference on System Science (HICSS 43), Kauai

Todreas, T. M. (1999) Value Creation and Branding in Television’s Digital

Age Westport, CT: Quorum Books



Twist, J. (2005) 'Law that has driven digital life: The Impact of Moore's

Law' BBC News 18 April available online at

http://news.bbc.co.uk/1/hi/sci/tech/4449711.stm (accessed 15.07.10)

Varian, H. R. (1995) ‗Pricing information goods’ Paper presented at the

Proceedings of Scholarship in the New Information Environment

Symposium, Harvard Law School, Cambridge, MA

Varian, H. R. (2001) ‗Economics of information technology’ accessed

online on April 23, 2010 Available online at

www.sims.berkeley.edu/~hal/Papers/mattioli/mattioli.pdf (accessed

21.07.10)

Wäppling, A., Strugnell, C. and Farley, H. (2010) ‗Product bundling

strategies in Swedish markets: links to business orientation and perceived

effects on consumer influence‘ International Journal of Consumer Studies

34(1):19-27

Ware, H. and Dippon, C.M. (2010) Wholesale unbundling and intermodal

competition Telecommunications Policy 34:54–64

Weaver, B. (2007) Research proposal Industry convergence Paper

submitted to the 19th NFF Conference The Institute of Economic

Research, Bergen, 9-11 August



Webster, J. (1986) Audience Behaviour in the New Media Environment

Journal of Communication 36(3):77-91

World Factbook (2009) 'World Digital Media Report' Deloitte and Touche,

2009 Available at

http://www.deloitte.com/view/en_GX/global/industries/technology-media-

telecommunications/df11f15355101210VgnVCM100000ba42f00aRCRD.htm

(accessed 08.08.10)

Wren, M. (2003) Conference Computing - An evaluation of the rise of

interactive sport on Digital TV unpublished School of Electronic and

Computer Science student work, University of Southampton Hampshire

Wolcott, H. F. (1994) Transforming Qualitative Data: Description, Analysis

and Interpretation Sage: Thousand Oaks, CA

Willcocks, L. and Oshri, I. (2009) ‗To bundle or not to bundle? Effective

decision-making for business and IT services‘ The Outsourcing Unit

(2009) Accenture Report (2009)

Wirtzab, B.W. (1999) ‗Convergence processes, value constellations and

integration strategies in the multimedia business‘ International Journal on

Media Management 1(1):14-22

Yoffie, D.B. (1997) Competing in the age of digital convergence

Boston/MA: Harvard Business School Press, pp. 159-200



Yoffie, D.B. and Kwak, M. (2002) ‗Judo Strategy: 10 Techniques for

Beating a Stronger Opponent‘ Business Strategy Review 13(1):20-30

Yoffie, D.B. (1997) ‗CHESS and competing in the age of digital

convergence‘ Boston, MA: Harvard Business School Press

Zook, C. and Allen, J. (2001) Profit from the core: growth strategy in an

era of turbulence Harvard Business School Press pp.195

7.2 Conferences attended in London for Dissertation Research

Social media Forum March (15-16, 2010), Olympia Exhibition centre, London

Internet World 2010 (April 27-28, 2010), Olympia conference centre, London

Digital Marketing Show (June 29, 30, 2010); Grand Hall, Olympia, London

7.4 List of Websites Accessed

http://www.emcp.com/intro_pc/reading7.html accessed on July10, 2010

http://www.koreaninsight.com/wp-content/uploads/2010/03/k-55.jpg

accessed on July 10, 2010

http://www.teradata.com/tdmo/v07n04/Features/DigitalConvergence.asp

x accessed on July 10, 2010



Intel's information page on Moore's Law – With link to Moore's original

1965 paper

Intel press kit released for Moore's Law's 40th anniversary, with a

[ftp://download.intel.com/pressroom/images/events/moores_law_40th/M

oores_Law_Original_Graph.jpg 1965 sketch] by Moore

IBM Research Demonstrates Path for Extending Current Chip-Making

Technique – Press release from IBM on new technique for creating line

patterns, 20 February, 2006

Definition of broadband access used here: 150 kbits/s or above offered by

ISP.

http://www.pwc.com/en_GX/gx/technology/pdf/digital-convergence-

ma.pdf PWC Report 2010


ractive_content_ec2006_final_report.pdf (accessed on July 11, 2010)

http://www.futuretimeline.net/21stcentury/2020-2029.htm

Websites visited: For the research purpose, the following websites have

been visited multiple numbers of times between March – August 2010

Wikipedia http://en.wikipedia.org/wiki/Digital_convergence



Linkedinhttp://www.linkedin.com/nhome/

Virgin Media http://www.virginmedia.com/

BBC http://www.bbc.co.uk/

Syncapsehttp://www.syncapse.com/

CR Films http://crfilms.net/

Brightcovehttp://www.brightcove.com/en/

Conservatives http://craigelder.co.uk/

Orange FT http://www.orange.com/en_EN/

Guardian http://www.guardian.co.uk/activate

Social Media Forum http://www.socialmedia-forum.com/

TV Genius http://www.tvgenius.net/

Google Images http://www.google.co.uk/imghp?hl=en&tab=wi

Sellingpix.com http://www.dreamstime.com/sellingpix_info

Gettyimageshttp://www.gettyimages.co.uk/?language=en-GB&location=GBR

Penmaen Media http://econsultancy.com/directories/members/carolyn-morgan

Media Contacts UK http://www.media-contacts.co.uk/



DigitalConvergence.eu http://www.digitalconvergence.eu/

Disney UK http://home.disney.co.uk/

Ecademy UK http://www.ecademy.com/

Universal Music http://www.universalmusic.com/

Kindred Agency Limited http://www.kindredagency.com/

Marketing Grin, UK http://www.marketinggrin.com/

Affiliate Window UK http://www.affiliatewindow.com/

BBC Press office Website:
www.bbc.co.uk/pressoffice/pressreleases/stories/2004/01_january/07/gra
ndstand_new_look.shtml

BBC Interactive Sport:
www.bbc.co.uk/sport

http://www.futuretimeline.net/21stcentury/2020-2029.htm accessed on
August 11, 2010

BSkyB Corporate Website
www.sky.com

www.skysports.com/skysports/home

www.wotsat.com



CHAPTER 8

APPENDIX

Annexure 1: Contents of DVD



8.1 CONTENTS OF THE DVD

(DVD enclosed in the back pocked of this spiral binding)

Here is a list of the enclosures contained in the compiled DVD:

1. A soft-copy of the full-length Dissertation

2. Audio Files of all the 20-candidates

3. Complete set of questions asked

4. Log-Sheet of the interviews to highlight audio-file number and

interview quotation details

5. Full Length Professional transcription of all the 20 candidates

6. Professional Profiles of the interviewees detailing the Date, Time and

Venue of each of the interviews.

7. Complete Set of the scanned copy of Consent Forms signed by the

interviewees in the order of interviews taken.

Annexure 2

Annexure 2.1 Profile of 20 Senior Professionals interviewed

1.Face to face interview: June 22, 2010; Time: 4-5 pm; Venue: Virgin Media Office,

Covent Garden, London; File name VN550054, Duration of Interview: 43min: 25sec



2. Face–to-face interview: July 14, 10-11 am, Venue: Discussion

Room, BBC White City, London; File Name: VN550079, Duration

of interview 57:14 min

3. Face–to-face interview: July 1, 12-1 pm, Venue: Orange FT

Office, Tottenham Court Road, London; File Name: VN550068,

Duration of interview 51:12 min

5. Face–to-face interview: July 28, 2-3 pm; Venue:

BSkyB studio, Buckingham Palace Road, London; File

Name: VN550089, Duration of interview 39:00 min

5. (Face to face) Skype Video Call interview from

Syncapse office, Toronto, June 29, 5-6 pm; File

Name: VN550062, Duration of interview: 34:45 min



6.Skype call interview from Berkley, CA, July 12, 9-10

pm; File Name: VN550076, Duration of interview

32:30 min

7.Skype call interview: TV Genius studio, June 21, 3-4 pm; File

Name: VN550050, Duration of interview 25 min

8. (Face to face) Skype Video Call interview from Germany:

July 20, 12 noon-1 pm; File Name: VN550082-83, Duration of

interview 1 hr: 33 sec.

9. (Face to face) Skype Video Call interview: July 23, 2010; Time: 10:30 -

11:30 am; Audio File Name: VN550083, Duration of Interview: 38 min

10.

Face–to-face interview: July 28, 12-1 pm, Venue: Ecademy,

Reading city, England (UK); File Name: VN550068, Duration

of interview 51:12 min

11. Face–to-face interview: June 25, 11-12 noon, Venue: Universal Music

Studio, Earls Court, London; File Name: VN550056, Duration of interview 27 min



12. Face-to-face interview: June 22, 10-11 am; Venue:

Meeting Room, Media Contacts office, Covent Garden,

London; File Name: VN550051, Duration of interview 27:13

min

13. Face–to-face interview: June 21, 11-1

pm; Venue: Office of Penmaen Media,

Stamford office, England; File Name:

VN550047, Duration of interview 1:13:45

14. Face–to-face interview: July 2, 2:30 -4 pm, Venue: Old Street,

London; File Name: VN550070-71, Duration of interview: 42:15 +

11:25 = 53:40 min

15. (Face to face) Skype Video Call interview from Dublin

studio, July 5, 1-2 PM; File Name: VN550074, Duration of

Interview: 30 min

16. Face–to-face interview: July 2, 5-6 pm, Venue: Meeting Room, Kindred

office (Goodge Street, London); File name:

VN550073, Duration of Interview: 24 min



17. Face–to-face interview: June 29, 2-3 pm, Venue: Millbank office, London;

File name: VN550061, Duration of

Interview: 30 min

18. Face–to-face interview: June 29, 2-3 pm, Venue: Earls Court, London; File

Name: VN550053-54, Duration of

Interview: 22:33 + 60 min= 1 hr 22 min

19. Face–to-face interview: July 1, 2-3 pm, Venue: Grand Hall, London Olympia

Centre, London; File Name: VN550065, Duration of Interview:

8 min

20. Face–to-face interview: July1, 3-4 pm; Venue: Grand Hall, London Olympia

Centre, London; File Name: VN550066, Duration of

Interview: 9 min

Annexure 8.2.2 Complete Set of Questions



MBA Dissertation-Qualitative Research Questions

Digital Convergence: Creative combination of Strategies and Marketing

Scene Setting: Introduction about your jobs and responsibilities, years of association

1. I am interested in researching about Digital Convergence.... I understand you/your company has

been involved with digital convergence… Could you tell me about your current role in the

organisation and a little bit about your responsibilities?

2. How many years have you been working on Digital Convergence? Or can you tell me how long

you have been involved with digital convergence issues…

3. Ok... in the past 5 years- what do you think has changed in terms of how digital convergence is

being done?

Role of Strategic Alliances:

4. Thinking about strategic alliances, what do you think is the role of strategic alliance in doing

Digital Convergence? How important are strategic alliances in doing digital convergence?

I was thinking of 2 types of digital convergence:

Of that between different industries- B2B

Of that between different mediums- between different information flows

5. How do you think it works in terms of impact market share? Is it just about market share?

Obstacles to successful strategic alliance

6. Still thinking of strategic alliances...what are the obstacles to successful strategic alliance? I was

thinking of licensing or policy issue…do you think that comes in the way to success?



Implication of Digital Convergence

7. From your perspective, do you think there is too much inter-industry convergence? Or is it too less?

What about the issue of single-point dependence that happens due to digital convergence?

8. What are the initiatives you/your company have taken to overcome the obstacles of convergence?

What do you personally think of bundling strategies, when it comes to digital convergence strategies?

Does Bundling work? Does it work better with integration?

9. Do you think companies can do more when it comes to bundling strategies? In general, is there more

what you could do? What more can be done?

10. One of the obstacles is horizontal and vertical integration around there new kind of technologies.

What are the challenges to horizontal and vertical convergence? How do you manage integration issues

in your organisation?

11. Obviously convergence calls for strategic changes…What do you think are the major changes you

have to go through? Do you think it is same for every player?

12. How do you think about it in context to your organisation?

13. What are the types of strategic changes that you have had to think about in the process? To what

extent other companies have to face similar challenges or are these changes specific to your

organisation?

14. You are a long term player in this field. Now new technology means new entrants. How do you as

an established company respond to threat of competition from new entrants? (Or if you are a new

entrant, how do you sail the existing competition in the market place?)

Major Challenges faced

15. I am interested in your perspective about the current regulatory and policy environment. What do

you see as major challenges you had to respond to in current policy and regulatory environment? What

are the major changes you had to respond to?

16. Technological advancements bring a lot of opportunities, but also introduce challenges. What are

the key issues you see with convergence-based services?

Future Outlook

17. From your perspective what is the future of digital convergence in 5 years time? How can a healthy

balance in digital convergence be achieved?



Creative combination of strategies

18. Some people talk about a combination of strategic alliance, bundling and integration as an

answer to the emerging issues with digital convergence. Do you think that works in the current

perspective?

19. Can there be a war like scene between powerful companies like Google and Apple?

20. What are the surprising trends or findings according to your analysis?

Annexure 8.2.3: Sample of Consent Letter

Dissertation Participation Consent - Information Letter

Dear _____________________

This letter seeks your participation in for my MBA Dissertation coursework which
is a part of my Masters in Business Administration (MBA) course at University of
Leicester. This dissertation will study areas related to strategies and marketing
of Digital Convergence from a business perspective. The discussions will be so
that I can:

-Successfully research on my MBA Dissertation on Digital Convergence
-Gain knowledge of present day convergence strategies
-I also hope to learn more about the topic area and develop my analytical skills.

Participation in this study is entirely voluntary. It will involve an interview of
approximately 30 minutes in length to take place at
_________________________on _____________________as previously
arranged and questions given in advance.


You may decide not to answer any of the interview questions if you wish. You
may also decide to withdraw from this study at any time by advising 099018609.
I may ask for clarification of some points some time after the interview, but as
an academic research, you will not be obliged in any way to clarify or participate
further.

If you request, the information you provide can considered confidential, except
that with your permission anonymised quotes may be used. If you request
confidentiality, beyond anonymised quotes, information you provide will be
treated only as a source of background research, alongside book and web-based
research.

If you request, your name or any other personal identifying information will not
appear in the course project paper resulting from this study; neither will there
be anything to identify your place of work or the business.

Notes collected during this study will be retained for the rest of the 2009-10
academic years in a secure location and then destroyed upon successful
attainment of my degree. The information gained from this interview will only be
used for the above objectives, will not be used for any other purpose and will not
be recorded in excess of what is required.

Even though I may present the study findings to University of Leicester, only the
course supervisor and I will have access to the interview data itself. It is also to
clarify that there are no known or anticipated risks to you as a participant in this
dissertation research participation.

If you have any questions regarding this study or would like additional
information please feel free to ask me before, during, or after the interview.

I can assure you that this dissertation research and questions asked have been
reviewed and approved by my course supervisor. I highly regard your
cooperation. Thank you for your time and assistance in participating in this
dissertation.

Yours Sincerely,

099018609



Annexure 2.4: CONSENT FORM

I have read the information presented in the information letter about the MBA
dissertation study being conducted by 099018609 for Masters in Business
Administration Dissertation coursework at University of Leicester, United
Kingdom.

I have had the opportunity to answer to questions asked by 099018609and have
faced no issues on answering them. I have been able to address the
perspectives that can provide valuable information to the dissertation study.

I am also aware that excerpts from the interview may be included in the course
project paper to come from this research. Quotations will / will not be kept
anonymous. I do/do not give permission for my identity to be revealed in
research reports.

I was also informed that I may withdraw my consent at any time by advising the
student researcher- 099018609.

With full knowledge of all foregoing, I agree to participate in this study.
Participant Name: ___________________________________________
Participant Signature: ___________________________________________
Participant‘s Name of Company: ____________________________________
Participant‘s Designation: _________________________________________

Interviewer Name: _099018609_
Interviewer Signature: ____________________________

Annexure 2.5: Log Sheet

This is the log-sheet for the quotations used in the dissertation. It gives a detailed a account of

time code in/out with respect to the issue addressed by the participant.

Annexure 2.6: SUPPLEMENTRY CHARTS

a) Thematic Chart for Strategic Alliances

b) Navigation Chart for the 3 Strategies



Giuliano Stiglitz,
Orange FT, “…cross
Research Parameter platform
participation…”
Endaf Kerfoot, Brand
New Adventures
Strategic Alliance
“…ease of content
sharing…”

Paul Cowen, Syncapse
(Toronto) “…lack of
Andrew McGrath, standard metric…”
Virgin Media “…focus Peter Brimacombe,
on core Formerly with Disney
competence…” World “…balance of
power…”

Triona Campbell, CR
Films “…bottom-up
Harry Strasser, Digital
efficiency…content
Convergence
sharing”
Consultant “…smart
John Denton, BBC
partnerships…”
“…share the
burden..share the
pain…”

Navigation Chart of the key strategies- the making of ‘Digital Avatar’



Research Parameter Data Analysis Literature Review Discussion
Strategic Alliance Gomes-Casseres, 1996 confirms overall
(Yoffie, 1997) new competitive
“…core competence…” Andrew McGrath landscape
(Hamel, 1991: 84), needs balancing act
(Mello,2003:3), (Bunduchi& more understanding
Berar, 2007: 102-114), (Park objectives of allies
et al., 2004) et cetra
“
…smart Harry Strasser
partnerships…smart (Chan-Olmsted, 1998: 35), new combinations of
applications…” (Hamel, 1991:86), Grant, knowledge and skills
2008:209), (Norman and overall beneficial,
Peter Brimacombe, Ramirez, 1993:65), (Nyström selective openness
Tim Hussain and Hacklin, 2005).
“…careful balance of change in the level
power…” playing field,
(Hamel,1991:84), (Jenkins, concern over ownership
2007), (Bettis and Hitt, 1995; can jointly solve
Sampler, 1998) common issues like
licensing
overall confirms to be an
effective strategy
Bundling (Kaluza et al., 1999) cited in
(Hacklin and Nyström, 2005); Mixed reactions,
“…bundled or unbundled..” Peter Brimacombe, (Brandenberger&Nalebuff); no common answer
Olishaw, Tim Hussain (Nalebuff, 1999). usability of pricing
“…freemium pricing…” (Wäppling et.al, 2010:18) specific to business
1996:117); (Porter 2001, 2), cases,
Day &Schoemaker, 2000; can promote cost
“…lack of performance Paul Cowan, John Denton, (Guiltinan, 1987; Gaeth et effectiveness
metric…” GiulianoStiglitz, al., 1990), (Saligner,1995:85)
Triona Campbell Serious issue
No real growth indicator

This dissertation
identifies need for a
metric to calculate real-
growth
Integration (Negroponte, 1995), (Lee, seamless interface
2003: 24-29). (Porter, 2001: between consumers,
“…creating 10), (Wirtzab, 1999:20), commerce, content
synergies…..think cross- GiulianoStiglitz (Norman and Ramírez, communications and
platform” 1993:2). Albarran and cross-platform
Dimmick (1996) advertising

…impact the scale… social John Denton (Bernabo et al. 2009). 360 degree approach
media enters… (Prahalad&Hammel, 1990) redefinition of landscape
(Friedman, 2007) ;(Tapscott, integrated marketing
2007). communication,
operational efficiency
Carolyn Morgan cost optimization
“…reorienting task- (Magretta, 1998; Ghosh,
skills…..demand for highly 1998) as cited in (Wirtzab; promotes work-sharing
competitive dynamic 1999:19 demand for highly
skills…” competitive skill-sets

This dissertation
identifies the
behavioural challenges
and need for highly
competitive skills



END


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