Journal
CALIFORNIA MANAGEMENT REVIEW
Volume 61, Issue 2, Pages 30-58Publisher
SAGE PUBLICATIONS INC
DOI: 10.1177/0008125618818841
Keywords
digital distribution; piracy; business model; innovation; Netflix; Spotify
Categories
Funding
- EPSRC UK Research Council [EP/K039695/1]
- EPSRC [EP/K039695/1] Funding Source: UKRI
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Digital piracy challenges firms by reducing revenues and shifting consumption habits. Recently, some firms have successfully leveraged business models against piracy, but the understanding about this phenomenon still lacks depth and structure. This study examines the characteristics of digital piracy in some of the most affected industries; presents comparative case studies of two iconic firms, Spotify and Netflix; and analyzes their digital business model responses. This article then considers a generic digital content distributor and explains how business model responses contribute to generating and capturing value. Theoretical and practical implications for technological innovation, firm diversification, and network competition are also discussed.
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