The effects of internet proliferation on search engine and over-the-top service markets

Abstract

Search engines and over-the-top (OTT) services, which provide Internet media content, have become increasingly important as Internet usage and the number of websites have spread worldwide. This study examined 1) how Internet proliferation in a given country affects the market shares of domestic and global search engine companies, and 2) how search engine shares in domestic markets affect the global market share of domestic OTT industry. The results showed that 1) wired Internet proliferation has a positive effect on the market shares of domestic search engines, while wireless Internet proliferation has a negative effect. In contrast, wired Internet proliferation has a negative effect on the market shares of global search engines, while wireless Internet has a positive effect. In addition, 2) an increase in the market shares of domestic search engine companies has a positive effect on the global market share of domestic OTT industry. The findings of this study have practical implications for strategy development of related companies and offer empirical evidence for the interdependence of growth in the Internet and entertainment and media markets.