Paid and Free Digital Business Models Innovations in the Video Game Industry

Digiworld Economic Journal, No. 94, 2nd Q. 2014, p. 83

20 Pages Posted: 6 Dec 2014

See all articles by Myriam Davidovici-Nora

Myriam Davidovici-Nora

École Nationale Supérieure des Télécommunications (ENST)

Date Written: June 30, 2014

Abstract

Digitalization of distribution has led to the creation of a broad range of digital business models in the video game industry among them freemium, subscription, advertisement, free-to-play. What are the borders of each model and on what economic grounds can we compare them? This paper proposes an interdisciplinary approach based on microeconomics and on business models literature to provide insights into the components and the economic architecture in paid and free business models. This framework enables also to understand recent hybrid paid and free business models in the video game industry.

Keywords: free-to-play, pay-to-play, video games, business model, innovation

JEL Classification: L21, L82, M21, Z1

Suggested Citation

Davidovici-Nora, Myriam, Paid and Free Digital Business Models Innovations in the Video Game Industry (June 30, 2014). Digiworld Economic Journal, No. 94, 2nd Q. 2014, p. 83. Available at SSRN: https://ssrn.com/abstract=2534022

Myriam Davidovici-Nora (Contact Author)

École Nationale Supérieure des Télécommunications (ENST) ( email )

Paris Cedex 13, F-75634
France
0033145817708 (Phone)
0033145659515 (Fax)

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