Strategic alliances in services of audiovisual entertainment content in the context of digital convergence: Evidence from TV and telephone companies in Brazil

The paper aims at analyzing the emerging strategic alliances and partnerships between traditional and new agents in the value chain of services of audiovisual entertainment content (AEC) in the context digital convergence in Brazil. Such alliances seek to accumulate relevant competencies for the effective exploration of the emergent market of multiplatform AEC: TV, IPTV, mobile phones, web, tablet. Our theoretical framework is based on the literature on value chains and strategic alliance management under the perspective of the resource-based view (RBV). Research methodology has mainly comprised in-depth interviews in television and telecom service providers in Brazil which hold together from 50% to 90% of market-share, depending on business segment. Research results reveal that whilst the new strategic alliances and partnerships are enabling television and telecom service providers to share costs, revenues and accumulate learning and competencies in order to change and expand their resource basis, this strategy is empowering potential new competitors in the value chain. This is a key management challenge to these companies in building a new market for this service.