Schmalenbach Business Review◆Vol.54◆ October2002◆pp.351-371 Valerie Feldman COMPETITIVE STRATEGY FOR MEDIA COMPANIES IN THE MOBILE INTERNET R ABSTRACT The provision of mass media content over next-generation 3G mobile networks sioned as an exciting new application of new media. This paper focuses on the mobile Internet as strategic challenge for media and entertainment companies. It provides an overview of distinctive features of the mobile Internet related to personalization, time and location sensitivity, uncertainties between technology push and market pull, and motiva- tions for engagement in mobile interactivity. The analysis of competitive strategy in the mobile Internet suggests that the changing market structures in the converging media and entertainment and mobile wireless telecommunications industries lead to shifts of bargain- ing power. The emerging co-opetition challenges media and entertainment companies to re-evaluate their activities in the mobile value chain that provide potential for the creation of sustainable competitive advantage in the mobile Internet. These changes are reflected in the emerging business models for media and entertainment companies in the mobile Internet. The paper presents three strategic options for media companies: a syndication strategy, a portal strategy, and a mobile virtual network operator strategy JEL-Classification: D8 L8. M3 1 INTRODUCTION The provision of mass media content over next-generation 3G mobile wireless networks! is envisioned as an exciting new application of new media. But its key success drivers remain uncertain. It is yet to be seen, if serving mobile content will be highly profitable or a money-losing business. The media uses various buzz words such as m-trading, mobile multiplayer games, and mobile movies and thus creates high expectations. Yet, the demand for mobile content tends to be assumed rather than demonstrated, and reality may disappoint Dipl. -Kffr. Valerie Feldmann, M.A., Affiliated Researcher, Columbia Institute for Tele-Information, Columbia Business School, New York, Visiting Scholar, Economics and Mass Communications, Freie Universitat Berlin, Malteserstr. 74-100, D-12249 Berlin, Phone:+49-177-73 694 72, e-mail: feld- nav@zedat. fu-berlin. de Acknowledgements: I thank the seminar participants at the CITI Ph. D research seminar, Columbia usiness School, New York, March 2001, for many helpful suggestions. The paper has also bene- ted from its discussion at the 19th Annual International Communications Forecasting Conference, Washington D. C. June 2001. Any errors that remain are only my 1 The international standards are specified by the International Telecommunication Union in its IMT-2000 report sbr54(42002)Valerie Feldmann* COMPETITIVE STRATEGY FOR MEDIA COMPANIES IN THE MOBILE INTERNET** ABSTRACT The provision of mass media content over next-generation 3G mobile networks is envi￾sioned as an exciting new application of new media. This paper focuses on the mobile Internet as strategic challenge for media and entertainment companies. It provides an overview of distinctive features of the mobile Internet related to personalization, time and location sensitivity, uncertainties between technology push and market pull, and motiva￾tions for engagement in mobile interactivity. The analysis of competitive strategy in the mobile Internet suggests that the changing market structures in the converging media and entertainment and mobile wireless telecommunications industries lead to shifts of bargain￾ing power. The emerging co-opetition challenges media and entertainment companies to re-evaluate their activities in the mobile value chain that provide potential for the creation of sustainable competitive advantage in the mobile Internet. These changes are reflected in the emerging business models for media and entertainment companies in the mobile Internet. The paper presents three strategic options for media companies: a syndication strategy, a portal strategy, and a mobile virtual network operator strategy. JEL-Classification: D8, L8, M3. 1 INTRODUCTION The provision of mass media content over next-generation 3G mobile wireless networks 1 is envisioned as an exciting new application of new media. But its key success drivers remain uncertain. It is yet to be seen, if serving mobile content will be highly profitable or a money-losing business. The media uses various buzz￾words such as m-trading, mobile multiplayer games, and mobile movies and thus creates high expectations. Yet, the demand for mobile content tends to be assumed rather than demonstrated, and reality may disappoint. Schmalenbach Business Review ◆ Vol. 54 ◆ October 2002 ◆ pp. 351 – 371 sbr 54 (4/2002) 351 * Dipl.-Kffr. Valerie Feldmann, M.A., Affiliated Researcher, Columbia Institute for Tele-Information, Columbia Business School, New York, Visiting Scholar, Economics and Mass Communications, Freie Universität Berlin, Malteserstr. 74-100, D-12249 Berlin, Phone: +49-177-73 694 72, e-mail: feld￾mav@zedat.fu-berlin.de. ** Acknowledgements: I thank the seminar participants at the CITI Ph.D. research seminar, Columbia Business School, New York, March 2001, for many helpful suggestions. The paper has also bene￾fited from its discussion at the 19th Annual International Communications Forecasting Conference, Washington D.C., June 2001. Any errors that remain are only my responsibility. 1 The international standards are specified by the International Telecommunication Union in its IMT-2000 report