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Information Communication
Technologies and Emerging
Business Strategies
Shenja van der Graaf, LSE, UK
Copyright © 2007 by Idea Group Inc. All rights reserved. No part of this book may be
reproduced, stored or distributed in any form or by any means, electronic or mechanical,
including photocopying, without written permission from the publisher.
Product or company names used in this book are for identification purposes only.
Inclusion of the names of the products or companies does not indicate a claim of
ownership by IGI of the trademark or registered trademark.
All work contributed to this book is new, previously-unpublished material. The views
expressed in this book are those of the authors, but not necessarily of the publisher.
iii
Information
Communication
Technologies and
Emerging Business
Strategies
Table of Contents
Preface .................................................................................................. vi
Chapter I
Propagating the Ideal: The Mobile Communication Paradox ................. 1
Imar de Vries, Utrecht University, The Netherlands
Chapter II
Beauty and the Nerd: Ethnographical Analyses in the Japanese
Digitalization .................................................................................................. 20
Gaby Anne Wildenbos, Utrecht University, The Netherlands
Yuichi Washida, Hakuhodo Inc. & The University of Tokyo, Japan
Chapter III
The Right of Interpretation: Who Decides the Success of
Picture Mail? ................................................................................................. 36
Michael Björn, Ericsson Consumer & Enterprise Lab, Sweden
iv
Chapter IV
Foreseeing the Future Lifestyle with Digital Music:
A Comparative Study Between Mobile Phone Ring Tones and
Hard-Disk Music Players Like iPod ......................................................... 59
Masataka Yoshikawa, Hakuhodo Inc., Japan
Chapter V
“You’re in My World Now.”™ Ownership and Access in the
Proprietary Community of an MMOG ...................................................... 76
Sal Humphreys, Queensland University of Technology, Australia
Chapter VI
Games and Advertisement: Beyond Banners and Billboards ............... 97
David B. Nieborg, University of Amsterdam, The Netherlands
Chapter VII
Digital Petri Dishes: LiveJournal User Icons as a Space and
Medium of Popular Cultural Production ................................................ 118
Alek Tarkowski, Polish Academy of Science, Poland
Chapter VIII
Creative London? Investigating New Modalities of Work in the
Cultural Industries .................................................................................... 140
David Lee, Goldsmiths College, University of London, UK
Chapter IX
Digital Cinema as Disruptive Technology: Exploring New Business
Models in the Age of Digital Distribution ............................................. 160
Nigel Culkin, University of Hertfordshire, UK
Norbert Morawetz, University of Hertfordshire, UK
Keith Randle, University of Hertfordshire, UK
v
Chapter X
Access to the Living Room: Triple Play and Interactive
Television Reshaping the Producer/Consumer Relation ................... 179
Eggo Müller, Utrecht University, The Netherlands
Chapter XI
Screening in High Standard: Innovating Film and Television in a
Digital Age Through High Definition ..................................................... 191
Bas Agterberg, Utrecht University, The Netherlands
Chapter XII
Bringing the Next Billion Online: Cooperative Strategies to
Create Internet Demand in Emerging Markets ................................... 209
Karen Coppock, Stanford University, USA
Chapter XIII
Organizing Across Distances: Managing Successful Virtual
Team Meetings .......................................................................................... 238
Kris M. Markman, Bridgewater State College, USA
Chapter XIV
Working at Home: Negotiating Space and Place .................................. 257
Tracy L. M. Kennedy, University of Toronto, Canada
Chapter XV
Media Life Cycle and Consumer-Generated Innovation .................... 280
Yuichi Washida, Hakuhodo Inc. & The University of Tokyo, Japan
Shenja van der Graaf, LSE, UK
Eva Keeris, Utrecht University, The Netherlands
2HAB=?A
their online game America’s Army: Operations.7 The game is part of the ad
campaign “Together We Stand: An Army of One” which aimed at counteract-
ing missed recruiting goals8 and results have shown that they have succeeded
very well (Van der Graaf & Nieborg, 2003).
Were digital technologies such as the Web previously seen as a direct threat or
even competitor to various sectors—especially media? These examples show
that the Internet is presently being incorporated into the calculus of major firms—
consolidating multiple platforms and digital divisions. Two intertwined trends
have emerged—particularly since the mid-1990s—that reflect the social, politi-
cal, and economic impact of information and communication technologies (ICTs)
on changes in the architecture of interaction. On the one hand, digital technolo-
gies have opened up ways for decentralization and diversification by enabling
consumers to become participants in the production and distribution of media
content rather than being endpoints for the delivery of a product or service.
This shift can be marked by a transition from a message- and transmission-
based architecture, where the sender controlled the rate and frequency of the
information, to a network model with greater reliance on the user’s self-regula-
tion, bypassing traditional media controls. On the other hand, firms have aimed
to use and leverage some of the unique qualities of ICTs by linking consumers
directly into the production and distribution of media content for reasons of
reputation and loyalty building and increasing returns on investment.
These two trends have attracted much attention across many academic disci-
plines and industrial sectors, especially regarding copyright issues, that is, the
control over the distribution of copyrighted material and the collection of rev-
enues for intellectual creations. More recently however, new ways of doing
business are being sought by capitalizing on the features of the digital environ-
ment—ranging from slight variations of off-line models to more radical
reconceptualizations of the roles of, and relationships among, content produc-
ers, intermediaries, and consumers (Slater et al., 2005). The relationship be-
tween a top down corporate-driven and a bottom up consumer-driven process
involving digital platforms can be viewed as an emerging site for revenue op-
portunities, expanding markets, and reenforcing consumer commitments, laying
bare the underlying structures by which both firms and consumers gain, pro-
cess, and exchange information. In other words, digital technologies are said to
have facilitated information and knowledge sharing to a far greater extent than
previous media forms, while offering a structure of interdependence character-
ized by relations of minimal hierarchy and organizational heterogeneity (Jenkins,
in press; Powell, 1990). This is achieved by permitting or even fostering a di-
versity of organizational logics that minimize conformity rather than maximize it
by enforcing a hierarchical system through standardized lines of authority
(Benkler, 2002; Stark, 2000).
In the current crowded state of the digital marketplace, firms increasingly are
said to look for ways to specifically acquire, engage, and retain their consum-
viii
ers. In doing so, they hope to be enabled to enhance their ability to monitor and
predict consumer expression and affiliation, while they rely on consumers to
spread the word about a product. Looking then at various communication tech-
nologies and relevant practices seems to be an increasingly important aspect of
emerging commercial strategies. The changing base underlying a firm’s inno-
vative activities can then be expected to have profound implications for the
way firms create innovative market strategies.
Contributions Towards
Innovative Market Creation Strategies
This book is divided into four sections. Innovation, Communication Tech-
nologies, and Consumer Clusters is kicked off by Imar de Vries. He explores
visions of mobile communication by focusing on idealized ideas surrounding
wireless technology. By examining sources on the development, marketing, and
use of wireless technology, he contextualizes these visions within earlier ac-
counts of ideal communication found in media history and isolates the regulari-
ties that are part of these accounts. On close examination, a paradox reveals
itself in these regularities, one that can be described as resulting from an un-
easiness in the human communication psyche: an unfulfilled desire for divine
togetherness clashes with individual communication needs. While the exact
nature of this paradox—innate and hard-wired into our brains, or culturally
fostered—remains unknown, the author claims that the paradox will continue to
fuel idealized ideas about future communication technology. He concludes with
the observation that not all use of mobile technology can immediately be inter-
preted as transcendental, and that built-in locational awareness balances the
mobile communication act.
Gaby Anne Wildenbos and Yuichi Washida focus on the Japanese usage of
digital products. Both the consumer and production side are addressed, whereby
emphasizing the mobile phone industry on the basis of two consumer groups
otakus and kogals. First, key characteristics of each consumer group are de-
scribed. Second, social and cultural aspects related to consumption behavior of
the otakus and kogals are examined, that is, collectivism, individualism and
kawaiiness. This is followed by the production side of digital products in Japan,
highlighting two major companies involved in mobile telephony: NTT DoCoMo
and Label Mobile, which in their turn, are linked to the consumption cultures of
otaku and kogals.
Michael Björn offers an empirical research report that describes the diffusion
of mobile camera phones and picture mail services in Japan between the years
1997 and 2005, based on annual consumer surveys conducted by Ericsson Con-
x
1890s the “picture” has been brought to the spectator in the form of photo-
chemical images stored on strips of celluloid film passed in intermittent motion
through a projector. Now, at the beginning of the 21st century, an entirely new
method has emerged, using digitally stored data in place of film and barely
needing any physical support other than a computerized file. This opens an
intriguing portfolio of revenue generating opportunities for the movie exhibitor.
They provide an overview of current developments in digital cinema and exam-
ine potential new business models in an industry wedded to the analogue pro-
cess. The authors consider the strategies of companies at the forefront of the
technology; implications associated with the change; and how different territo-
ries might adapt in order to accommodate this transition.
Then, Eggo Müller writes an insightful piece on the Dutch treatment of interac-
tive TV. Whereas, the advent of interactive TV has been discussed as one of
the key added values of digitization and convergence of old and new media for
years, current marketing strategies of the big players on the Dutch telecommu-
nications market determinately avoid using the term interactivity. Promising
the user “more fun” and more easiness of media consumption when digitally
connected to the media world though a provider that offers broadband Internet,
cable television, and telephony in one package, the competitors themselves aim
at another added value of interactive media consumption: getting access to the
living room means getting access to consumption patterns that can be traced
back to the individual consumer. Müller’s chapter discusses media convergence
and the current development of interactive television in the context of the
reconfiguration of the relation between producers and consumers in the new
online economy.
Bas Agterberg offers a fresh perspective on high definition and the innovation
of television by looking at the development of High Definition Television (HDTV).
He argues that the way technological, industrial, and political actors have been
interacting, has been crucial to the several stages of the development of this
innovation. The central question is how industry, broadcasters, and consumers
have debated and defined a medium and consequently redefined a medium
through innovations. The complexity and the way actors have played a part
within the changing media environment is analyzed by looking at the necessity
for technological change of the television standard, by relating the media film
and television in transition from analogue to digital and by examining case stud-
ies of political debates and policy in Europe and the U.S.
In the final section of this book Emerging Markets and Organizational Cul-
tures, Karen Coppock classifies the types of partnerships employed to increase
Internet demand in emerging markets. This classification system or taxonomy,
is based on more than 60 in-depth interviews of about 32 partnerships designed
to create Internet demand in Mexico. The taxonomy first classifies the partner-
ships into three broad categories based on the number of barriers to Internet
usage the partnership was designed to overcome: one, two, or three. The part-
nerships are then classified into six subcategories based on the specific barrier
xiii
References
Benkler, Y. (2002). Coase’s pengiun, or, Linux and the nature of the firm. Yale
Law Journal, 112(3), 369-446.
Jenkins, H. (in press). Convergence culture.
Powell, W. (1990). Neither market nor hierarchy: Network forms of organiza-
tion. Research in Organizational Behavior, 12, 295-336.
Slater, D. (2005). Content and control: Assessing the impact of policy choices
on potential online business models in the music and film industries.
The Berkman Center for Internet & Society at Harvard Law School.
Stark, D. (1996). Recombinant property in east European capitalism. American
Journal of Sociology, 101, 993-1027.
Van der Graaf, S. (2004). Viral experiences: Do you trust your friends? In S.
Krishnamurthy (Ed.), Contemporary research in e-marketing. Hershey,
PA: Idea Group Publishing.
Van der Graaf, S., & Nieborg, D. B. (2003). Together we brand: America’s
army. In M. Copier & J. Raessens (Eds.), Level Up: Digital Games
Research Conference. Utrecht University.
Endnotes
1
Henrik Werdelin, VP Strategy and Product Development at MTV Net-
works International, June 21, 2005.
2
Retrieved May 9, 2005, from http://www.microsoft.com/presspass/press/
2005/jan05/01-05MTVAgreementPR.asp
xv
3
Ibid. In addition, MTV Overdrive was launched which is a hybrid channel
that provides consumers with a linear viewing experience and video-on-
demand capabilities in a Web-based application covering music, news, mov-
ies, mini-sodes, and so on. Then in July MTV Networks UK & Ireland
tried to fight declines in TV ratings with MTV Load and 2 months later
they teamed up with IssueBits to work on a text-to-screen service Mr
Know It All which allows viewers of MTV Hits to use SMS to ask ques-
tions which will—along with the answers—appear live as a way to boost
viewers and put them in ‘“collective control’ of content, look, and tone.”
Towards the end of the year MTV Networks International announced a
global series of mobisodes to be distributed via MTV’s mobile channels
and Motorola’s Web site. They also announced a collaboration with mo-
bile content provider Jamster!, to embark on a joint research project to
see “how the role of mobile content is evolving around the world and how
that can inform MTV to develop compelling, new entertainment that is
even more relevant to consumers.” All these developments can only leave
us wondering what MTV will announce in 2006, as the latest addition to
their multi-platform strategy delivering content to consumers everywhere
they demand it: on-air, online, wireless, video-on-demand, and so forth.
4
It has over a million views a day, the number of new visitors increases
monthly with 200,000 and people spend about 25 minutes on the site.
5
It is based on a partnership with AOL Music.
6
This means that users can chat, post messages, and listen to each other’s
music mixes with other V-egos. It pays off to be a good music mixer,
which is contextualized within the community by a contest where a user
can win decibels that are a virtual currency and can be used to buy furni-
ture and the like to decorate one’s private room. All kinds of games can be
played and new games (e.g., Uncover the Music), skins, and music among
others are frequently added to attract and retain users. See http://
www.turboads.comcase_studies/2003features/c20030514.shtml
7
See http://www.americasarmy.com
8
The answer to this recruiting problem was to change the way the U.S.
Army communicates with young people in the USA. A short-sided ap-
proach to rely simply on its name, the U.S. Army learned that they needed
ongoing insights in research-based advertising in order to understand the
attitudes and needs of young people.
xvi
Section I:
Innovation,
Communication
Technologies, and
Consumer Clusters
Propagating the Ideal: The Mobile Communication Paradox 1
Chapter I
Abstract
Copyright © 2007, Idea Group Inc. Copying or distributing in print or electronic forms without written
permission of Idea Group Inc. is prohibited.
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