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Abstract
FAQs
Introduction
Method
Business Model Design Parameters
Conclusions and Implications
References
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Business and Management
Other Business

Online Media Business Models: Lessons from the Video Game Sector

Profile image of Marlen KomorowskiMarlen Komorowski
https://doi.org/10.16997/WPCC.220
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21 pages

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Abstract

Today’s media industry is characterized by disruptive changes and business models have been acknowledged as a driving force for success. Current business model research manages only to grasp static descriptions while in reality media managers are struggling with the dynamics of the industry. This article aims to close this gap by investigating a new paradigm of online media business models. Based on three video game case studies of the massively multiplayer online role-playing game genre, this article explores a novel theoretical approach to explain the changes that can be made within business models. The article highlights the importance of changing processes within online media business models and emphasises that the video game sector is at the forefront of business innovation. Finally, it demonstrates that online media business model change is in a trade-off paradigm between capturing or offering potentially higher value per player vs. accessing a potentially larger player-base.

FAQs

sparkles

AI

What trends in MMORPGs indicate a shift in business model strategies?add

The study reveals a significant transition from subscription models to freemium structures, with key cases like Lord of the Rings Online showing economic struggles that necessitated this change.

How did the integration of the value chain affect MMORPG business models?add

The research indicates that stronger integration correlates with higher revenue retention per player, as demonstrated by World of Warcraft's tightly controlled distribution and payment processes.

What were the economic factors driving MMORPG adaptation in business models?add

Economic pressures, such as declining subscriptions and increased competition from free-to-play models, forced games like Aion to shift from subscriptions to free-to-play frameworks for broader market access.

What role did technological capabilities play in MMORPG accessibility?add

Lower hardware requirements, as seen with RuneScape's browser-based model, significantly increased player accessibility compared to high-specification games like World of Warcraft.

What insights does the study offer for media managers facing disruption?add

The findings provide a framework illustrating how to strategically choose between capturing player value and expanding player base, vital for adapting to market disruptions.

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