Connected TV: a resources and competences approach

The extensive use of the Internet, and in particular of the broadband connection, is encouraging the creation of new, more dynamic and interactive television models, ones that more closely mirror the needs and desires of the viewer. This is achieved through new technologies offering better services as well as improved quality. As is typical of “connected” worlds (like Internet, cinema, etc.), the concentration of many features on one form of media – in this case the TV - is increasingly spreading. This phenomena commonly known as the "digital revolution", is due to the many drastic changes that have occurred in the television industry. The convergence of the traditional TV and the Web worlds has given way to the Connected TV. The process of hybridization between audiovisual diffusion systems, interactive services and the possibility to use several different services directly from television terminals has begun taking shape. The new concept of television is called "Over the Top TV" (OTT TV): it represents the opportunity for integration between regularly programmed TV and on-demand contents. OTT TV includes broadband services which enable the delivery of videos through a broadband connection. This paper, focusing in particular on the scenario of the Connected TV, aims to answer two questions: first, "What kind of resources, competences and skills are needed in these new markets?" and second, "Do successful business models exist that can be replicated by different players?". Through the analysis of existing literature, the study of secondary sources and the investigation of more than thirty cases in the Italian Media Industry, the authors have identified the core resources and competences (R/Cs) essential for gaining a competitive advantage in the Connected TV arena, and have shed some light on some of the more interesting business models. In particular, a support tool has been created based on the following six steps: i) a general map has been drawn illustrating the necessary resources and competences characterising the sector; ii) the Connected TV’s Critical Success Factors (CSFs) have been identified; iii) the CSFs that have an impact on a company’s objectives have been selected; iv) the critical resources and competences for a specific company have been individuated; v) the core resources and competences, that is to say a subset of the critical resources and competences that have passed specific tests, have been selected; vi) the match between the R/Cs individuated and the corporate objectives established has been verified. Finally, the support tool has been tested in a real case and it has proven useful in helping the company to better understand its core competences, taking into account its specific objectives.