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![Figure 2: [yellow tail] value curve for analyzing the "competition" in...](profile/Estrela-Cruz/publication/341474391/figure/fig2/AS:894715650129921@1590328242276/yellow-tail-value-curve-for-analyzing-the-competition-in-booking-platforms-for-sport_Q320.jpg)
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... network effects are among the most powerful strategic and key resources that can be delivered by technology-based innovation (Adner and Kapoor, 2009). In (Hariharan, 2016), different theories and approaches are presented and compared, related to network-effects-value, in order to measure the effective value of a network. Even being totally different theoretical approaches, and based on a distinct value definition premises, they converge and agree on an extremely significant conclusion, for network effect theory: that the network value is directly related with the network size. ...
Context 2
... second approach is known as Metcalfe's law (Li, 2008), perhaps one of the most worldwide recognized network value theories. Metcalfe's law, de- picted in Figure 1, is the most widely accepted model, to explain the "web-effect". This theory, named after Robert Metcalfe, co-inventor of the Ethernet and co-founder of 3Com, pointed out that the value of a telephone network grows nonlinearly as the number of subscribers of the network increases, making more connections among subscribers possible. ...
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... For instance, Velagapudi (2020) focuses on the evolution of marketing strategies, from traditional to modern and digital methods, and examines how Wimbledon's traditional image has evolved into a global brand through these changes, mainly through social media. Caldas et al. (2020) report the conceptualization of a multi-sided platform for sports facilities since multi-sided networked markets are a result of digitalization and "network effects are one of the most powerful key strategic assets that can be created by technology innovation" (pp.276-277). Herold et al. (2021) conceptualize professional clubs as economic platforms, and the absence of in-stadium spectators due to network effects (Tamir, 2022) may alter the roles of stakeholders based on the presence of network effects. ...
Today media and sports are indivisible, having a kind of inseparable, mutually influential relationship. Media attracts audiences and generates profit through sports. In its turn, sports content is disseminated, transmitted, and popularized through the media. Thus, theoretically, sports and media exist in symbiosis. However, practically, this relationship is complex and includes many factors. First of all, in recent decades, the process of overall digitalization (and digital transformation) of all fields of life has had a crucial impact on sport, media, and their interrelationship. This paper aims to conceptualize and analyze the possible impact of digitalization on “winner-takes-all” (WTA) (winner-takes-most, WTM) dynamics in the professional sports industry, notably for spectating audiences, and answer the question: “Can digitalization be seen as a driver of ecosystem change and how it should be tested?” This conceptual model paper seeks to construct and develop a theoretical framework that can explain and predict relationships between concepts of digitalization and key sport spectating variables: audience, TV rights, and revenue through a prism of WTA. We found that the technological change in the sports media market and the greater global-orientated strategy of leading sports organizations have re-sorted and compressed many market shares, but the effect of technological disruption has been significantly less pronounced for the most powerful digital leaders in the industry. To this end, we represent digitalization as the main accelerating factor of the WTA effect (along with other auxiliary effects) in the sports industry and propose future research directions and perspectives.
... The study indicates " significant differences for most of the variables analyzed ( surface area, number of users, income from quotas, extraordinary income, total income, monthly income per customer and average monthly quota) between public and private sports facilities and between business models" ( Santacruz Lozano et al., 2021, p. 38). Caldas et al. ( 2020) develop a model of a multisided digital platform connecting owners of sports facilities, their customers and platform administrators. Such a platform may be considered as a factor driving business model innovation in the market and as a manifestation of digitalization processes in sport-related industries. ...
... The study indicates " significant differences for most of the variables analyzed ( surface area, number of users, income from quotas, extraordinary income, total income, monthly income per customer and average monthly quota) between public and private sports facilities and between business models" ( Santacruz Lozano et al., 2021, p. 38). Caldas et al. ( 2020) develop a model of a multisided digital platform connecting owners of sports facilities, their customers and platform administrators. Such a platform may be considered as a factor driving business model innovation in the market and as a manifestation of digitalization processes in sport-related industries. ...
