Growth and Dynamics of Maturing New Media Companies Growth and Dynamics of Maturing New Media Companies Growth and Dynamics Of
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CINZIA DAL ZOTTO CINZIA DAL CINZIA DAL ZOTTO (ed.) CINZIA DAL ZOTTO (ed.) (ed.) Growth and Dynamics of Maturing New Media Companies Media Companies and Dynamics of Maturing New Growth Growth and Dynamics of Companies that were called “new media” fi rms a decade ago are now maturing and playing increasingly competitive roles in the media landscape and compre- Maturing New Media hension of the uses and opportunities presented by these technologies have evol- ved along with the fi rms. The changes resulting from the introduction of the technologies, and their uses by media and communication enterprises, today Companies present a host of realistic opportunities to both established and emergent fi rms. This book explores developments in the new media fi rms, their effects on traditional media fi rms, and emerging issues involving these media. It addresses Media Management and Transformation Centre issues of changes in the media environment, markets, products, and business practices and how media fi rms have adapted to those changes as the new techno- Jönköping International Business School logy fi rms have matured and their products have gained consumer acceptance. It explores organizational change in maturing new media companies, challenges of growth in these adolescent fi rms, changing leadership and managerial needs in growing and maturing fi rms, and internationalization of small and medium new media fi rms. The chapters in this volume reveal how they are now creating niches within media and communication activities that are providing them com- petitive spaces in which to further develop and succeed. The book is based on papers and discussions at the workshop, “The ‘New Economy’ Comes of Age: Growth and Dynamics of Maturing New Media Com- panies” sponsored by the Media Management and Transformation Centre of Jönköping International Business School, 12-13 November 2004. The volume was edited by Cinzia dal Zotto, research manager of and a post-doctoral fellow at the Media Management and Transformation Centre, Europe’s premier centre on media business studies. 2005-2 JIBSReports Research No. JIBS ResearchResearch ReportsReports ISSN 1403-0462 ISBN 91-89164- 61-X No.No. 2005-2 CINZIA DAL ZOTTO CINZIA DAL CINZIA DAL ZOTTO (ed.) CINZIA DAL ZOTTO (ed.) (ed.) Growth and Dynamics of Maturing New Media Companies Media Companies and Dynamics of Maturing New Growth Growth and Dynamics of Companies that were called “new media” fi rms a decade ago are now maturing and playing increasingly competitive roles in the media landscape and compre- Maturing New Media hension of the uses and opportunities presented by these technologies have evol- ved along with the fi rms. The changes resulting from the introduction of the technologies, and their uses by media and communication enterprises, today Companies present a host of realistic opportunities to both established and emergent fi rms. This book explores developments in the new media fi rms, their effects on traditional media fi rms, and emerging issues involving these media. It addresses Media Management and Transformation Centre issues of changes in the media environment, markets, products, and business practices and how media fi rms have adapted to those changes as the new techno- Jönköping International Business School logy fi rms have matured and their products have gained consumer acceptance. It explores organizational change in maturing new media companies, challenges of growth in these adolescent fi rms, changing leadership and managerial needs in growing and maturing fi rms, and internationalization of small and medium new media fi rms. The chapters in this volume reveal how they are now creating niches within media and communication activities that are providing them com- petitive spaces in which to further develop and succeed. The book is based on papers and discussions at the workshop, “The ‘New Economy’ Comes of Age: Growth and Dynamics of Maturing New Media Com- panies” sponsored by the Media Management and Transformation Centre of Jönköping International Business School, 12-13 November 2004. The volume was edited by Cinzia dal Zotto, research manager of and a post-doctoral fellow at the Media Management and Transformation Centre, Europe’s premier centre on media business studies. 2005-2 JIBSReports Research No. JIBS ResearchResearch ReportsReports ISSN 1403-0462 ISBN 91-89164- 61-X No.No. 2005-2 CINZIA DAL ZOTTO (ed.) Growth and Dynamics of Maturing New Media Companies Media Management and Transformation Centre Jönköping International Business School Jönkoping International Business School P.O. Bos 1026 SE-551 11 Jönköping Sweden Tel. + 46 36 15 77 00 E-mail: [email protected] www.jibs.se Growth and Dynamics of Maturing New Media Companies JIBS Research Report Series No. 2005-2 © 2005 Cinzia dal Zotto and Jönköping International Business School Ltd. ISSN 1403-0462 ISBN 91-89164- 61-X Printed by ARK-Tryckaren AB, 2005 ii Contents Foreward v Introduction What is the New Economy? 3 Cinzia dal Zotto, Jönköping International Business School, Sweden Background, Questions, and Speculations for Tomorrow’s Economy 11 J. Bradford DeLong, University of California at Berkeley and National Bureau of Economic Research, USA, and A. Michael Froomkin, University of Miami School of Law, USA New Economy and Market Dynamics: Changes to Existing Industries and Firms The Anticipated Effect of the SuperNet on Alberta’s Media Industry 41 Aaron Braaten, University of Alberta, Canada Big Brother: Analyzing the Media System Around a Reality TV Show 55 Tobias Fredberg and Susanne Olilla, Chalmers University of Technology, Gothenburg, Sweden Integration Strategies of a Niche Communication Company: 73 The Case of Gambero Rosso Benedetta Prario and Giuseppe Richeri, University of Lugano, Switzerland The Changing Structure of Media Organizations and its Meaning 87 During the Transformation of the Social and Economic System in China Xin Xun Wu and Ji Yin Chen, Shanghai University, China Digitization and the New Economy: Telecommunications and Television Past, Present, and Future of the European Telecommunications Industry 103 Jacqueline Pennings, Hans van Kranenburg, John Hagedoorn, Maastricht University, The Netherlands iii The Key of Success, the Cause of Failure: 125 A Comparative Analysis of Two UK Digital Television Companies Giuseppe Pagani, Benedetta Prario, Fabiana Visentin and Yvonne Zorzi, University of Lugano, Switzerland Growth in a Convergent World: 139 The Bundle of TV and Telephone Services on the Fiber Optic Network Marco Gambaro, University of Milan and Simmaco Management Consulting, Italy The Impact of Digital Convergence on Broadcasting Management 155 in Korea: Telecommunications Firms’ Entry into the Broadcasting Industry Daeho Kim, Inha University, South Korea The Maturing New Economy: New Opportunities, Structures, and Challenges Will Peer-to-Peer Technologies Create New Business? 169 Franz Lehner, University of Passau, Germany The Successful Model of Overseas Investment in 185 Chinese New Media Companies Yingzi Xu, University of St. Gallen, Switzerland Censorship, Government, and the Computer Game Industry 195 Robert C. Burns and T.Y. Lau, University of Washington, Seattle, USA Managing Growth in Young Firms: 211 A Matter of Theory or a Question of Practice? Cinzia dal Zotto, Jönköping International Business School, Sweden Contributors 235 iv Foreword New media and their related communication systems are no longer “new.” They survived the introduction period in the later half of the 1990s and the shakeout at the turn of the twenty-first century; they are now developing, maturing, and playing increasingly competitive roles in the media landscape. Financiers, audiences, advertisers and sponsors, and media firms are gaining an understanding of the uses and opportunities presented by these “new economy” technologies. This book focuses on developments in new media firms, effects on traditional media firms, and emerging issues involving these media. It contains chapters based on selected papers from the workshop, “The ‘New Economy’ Comes of Age: Growth and Dynamics of Maturing New Media Companies” sponsored by the Media Management and Transformation Centre of Jönköping International Business School on 12-13 November 2004. The purpose of the workshop was to seek assessments and evaluations of firms in the new economy in order to comprehend their scope and activities, enable discussions of their status and future, explore implications for policy making, and spark new research on issues involved. The new economy has implications not only for the macro-economy but also for the management, marketing and financing of the companies. Presentations at the workshop focused on questions central to the new economy debate, such as organizational change in maturing new media companies, challenges of growth in adolescent firms, changing leadership and managerial needs in growing and maturing firms, internationalization of small and medium new media firms, investments in new media firms. They explored changes in the new media environment, markets, products, and business practices and how firms have adapted to those changes as they have matured and gained consumer acceptance. The chapters in this volume reveal a great deal about new media firms and technologies and how they are now creating niches within media and communication activities that are providing them competitive spaces in which to further develop and succeed. The volume was edited by Cinzia dal Zotto, research manager of and a post- doctoral fellow at the Media Management