| Summary: | 碩士 === 國立政治大學 === 廣播電視學系 === 107 === The subversive wave of OTT TV disruptive innovation has been changing the rules of market competition for the incumbent television media in Taiwan. In order to explore the competition strategies of both OTT TV and the incumbent Pay TV in the Taiwanese video service market, this study from the point of view of disruptive innovation theory considers the question of how OTT TV develops the model of disruptive innovation in the Taiwanese market. It also examines not only how the Pay TV in Taiwan responds and is in turn transformed, but also the impact that illegal piracy has on OTT TV disruptive innovation in Taiwan as well as the conflicts that subsequently arise.
This study utilizes numerous literature reviews and in-depth interviews with nine professionals in the industry-government-university field, in order to compare and analyze multiple cases of OTT TV and the incumbent Pay TV. In light of discussions on disruptive innovation theory, the researcher thereby focuses on both OTT TV and the incumbent Pay TV in Taiwan to propose strategic suggestions, with government policy to counter piracy being targeted.
Through the analysis of the literature review and the many interviews, the study crystallizes three major findings. First of all, OTT TV has created opportunities for disruptive growth in both “new markets” and “low-end markets” in Taiwan. IQIYI and LiTV, for instance, have respectively employed different disruptive innovation models to enter the Taiwanese market. However, OTT TV has not found a “profitable business model” in Taiwan. Therefore, a key to success for OTT TV disruptive innovation is concerned with how to connect multi-sided markets and create a platform revolution to encourage users to take big strides towards higher levels of consumer demand. Secondly, apart from considering the factors associated with market competition in disruptive innovation in the Taiwanese market, OTT TV also has to take into account non-market factors. The most critical of these among other things is “illegal offshore piracy,” which has severely impacted the Taiwanese OTT TV practitioners’ motives of disruptive innovation and their entrepreneurial capabilities. Thus, the study recommends that the government deploy multiple solution methods as soon as possible and adopt the three regulatory models of administration, the judicature and government counseling to ensure a friendly and fair competitive environment to encourage innovation in the Taiwanese OTT TV market. Thirdly, in response to the disruptive attack of OTT TV, the Taiwanese incumbent Pay TV firms, such as Kbro and Chunghwa Telecom, have already entered the battle over OTT TV and proposed a hybrid approach to sustain innovation, which combines Pay TV and OTT TV. Meanwhile, in order to absorb OTT TV, both firms also respectively employ different strategic approaches and models of organizational transformation to achieve a balance between old and new businesses and resource integration. Looking forward to the future, the incumbent Taiwanese Pay TV must seriously consider the question of how to re-locate its core business and open up as a disruptor in the blue ocean market of OTT TV.
Keywords: disruptive innovation, platform strategy, OTT TV, cable television, IPTV, piracy
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