Co-opetition of TV broadcasters in online video markets : a winning strategy?

Abstract

This article focuses on TV broadcasters adopting co-opetition strategies for launching online video services. It is claimed that the emergence of online video platforms like YouTube and Netflix is driving TV broadcasters to collaborate with their closest competitors to reduce costs and reach the necessary scale in the global marketplace. The article sheds light on online video platforms that were developed following a co-opetition strategy (Hulu and YouView). The establishment of joint ventures in online video, however, has been scrutinised by competition authorities which fear that collaboration between close competitors lessens rivalry and reduces consumer choice. Therefore, several co-opetition projects (among others BBC’s Kangaroo and Germany’s Gold) have been prohibited by competition authorities