The influence of the diffusion of triple-play services and IPTV on actor's position in the VoD business network : the French case

The launch of triple-play services, including IPTV can be considered as a 'critical event' having a strong structural impact of the market. It has not only induced a strong development of the French broadband Internet access market, but has also disrupted the supply of significant services. In particular, the IPTV system implemented by broadband Internet access providers is challenging both the supply of traditional services, such as broadcast TV, but also the supply of on-line services such as VoD. In this paper we analyse the evolution of the VoD supply in France, and in particular the effect of the launch of IPTV systems. Two main effects have been identified. Firstly, the launch of attractive triple-play offers has induced a strong development of the French broadband Internet access market, which in turn has resulted in the entry of numerous players in the VoD market. Secondly, the IPTV system has changed the balance of power in the VoD value-chain, thus inducing or amplifying strategic moves along this value-chain. In this paper, after presenting the VoD business and context, we first analyse the initial situation of the French broadband Internet and VoD market in the pre-IPTV period, and introduce the 'critical event' represented by the launch of triple-play services. Then we analyse the entries of different companies and the inter-organisational arrangements used. Finally, we show how the change in the balance of power induced by IPTV has amplified the strategic moves of major market players. We conclude by outlining competitive and regulatory implications.