What is the Co-opetition framework?
This framework highlights tensions between tech platforms and legacy media companies in the streaming marketplace. “Co-opetition” is a word that combines “competition” and “cooperation”. It is defined as “collaboration between business competitors, in the hope of mutually beneficial results”.
An SVOD service agrees to distribute on a platform which offers its own, competing SVOD service (e.g., Disney+ agrees to distribute on Amazon Fire TV, which also distributes Amazon Prime Video)
How does the Co-opetition framework work?
This framework helps to better understand negotiations between platforms and services for distribution. It identifies when platforms have more incentives to cooperate, and when they have more incentives to compete.
Increasingly in both AVOD and SVOD marketplaces, platforms are producing competitive original content for their own streaming services.
Real World Example
In February 2021, Roku signed a deal with Amazon to bring the IMDb TV – a free, ad-supported streaming service – to the Roku platform in the U.S.
The IMDb TV service competes for viewers — and ad dollars — with the Roku Channel, a similar AVOD service.
Learn more in this free piece:
- Mic Drop #17: We know more about IMDb TV than Amazon Prime Video (February 19, 2021)