European Business Schools Librarian's Group

IESE Research Papers,
IESE Business School

No D/881: Social movements, political battles, and new market emergence in pay television

Kerem Gurses and Pinar Ozcan ()
Additional contact information
Kerem Gurses: La Salle
Pinar Ozcan: IESE Business School, Postal: Research Division, Av Pearson 21, 08034 Barcelona, SPAIN

Abstract: This paper documents the development of pay TV in the United States. We show that when the first version of pay TV, over-the-air pay TV, came to the market, a social movement started by movie theatres and TV broadcasters to "protect free TV" blocked the emerging market. Later on, however, another technology with a similar business model, pay cable TV, became successful. A closer look into the factors leading to this success shows that regulatory voids, the ambiguity of the public interest frame, and the influence over public opinion can create windows of opportunity for a technology to emerge despite strong opposition from incumbent firms. We argue that in highly regulated industries, technology dominance can arise from windows of opportunity emerging amidst political battles.

Keywords: technology; market emergence; social movement; regulation; organizational frames

24 pages, October 3, 2010

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