Versioning information goods with network externalities
ICIS '00 Proceedings of the twenty first international conference on Information systems
Current issues in e-banking: introduction
Communications of the ACM
Strategic Orientation, Competition, and Internet-Based Electronic Commerce
Information Technology and Management
Lines of advance in global information technology management: American/West European approach
Advanced topics in global information management
Information Technology in the Future of Health Care
Journal of Medical Systems
Internet channel entry: retail coverage and entry cost advantage
Information Technology and Management
The impact of technology on the quality of information
Proceedings of the ninth international conference on Electronic commerce
Optimal Multi-Channel Delivery of Expertise: An Economic Analysis
International Journal of Electronic Commerce
Manufacturers' Distribution Strategy in the Presence of the Electronic Channel
Journal of Management Information Systems
Internet portals' strategic utilization of UCC and Web 2.0 Ecology
Decision Support Systems
Impact of e-book technology: Ownership and market asymmetries in digital transformation
Electronic Commerce Research and Applications
Information Goods vs. Industrial Goods: Cost Structure and Competition
Management Science
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Rapid technological developments and deregulation of the telecommunications industry have changed the way in which content providers distribute and price their goods and services. Instead of selling a bundle of content and access through proprietary networks, these firms are shifting their distribution channels to the Internet. In this new setting, the content and Internet service providers find themselves in a relationship that is simultaneously cooperative and competitive. We find that proprietary content providers prefer the Internet channels to direct channels only if the access market is sufficiently competitive. Furthermore, maintaining a direct channel in addition to the Internet channels changes the equilibrium enough that the proprietary content providers prefer having the Internet channels, regardless of the level of competition in the access market. Telecommunications technology developments uniformly increase content providers' profit. On the other hand, the technology impact on Internet service provider profits is nonmonotonic: Their profits may increase or decrease as a result of lower telecommunication costs. While initially the ISP profit increases as more customers are drawn to the Internet, it eventually decreases as the spatial competition becomes more intense. We also show that proprietary content providers should benefit from having some free content available at the Internet service providers' sites to induce more customers to join the Internet.