Qualitative analysis of structural holes in emerging media industries: Evidence from Taiwan's Over-The-Top Industry

Abstract

This study examined the relationships, structural holes, and structural hole spanners among Taiwan's over-the-top (OTT) operators. It explored whether Taiwan's local OTT operators can serve as bridges or structural hole spanners within this network. Qualitative structural analysis was performed, in-depth interviews were conducted, and data were analyzed using a grounded theory approach. Five themes were identified: (1) loose networks among local Taiwanese OTT players, with Netflix as a bridge; (2) Netflix as a structural hole spanner in Taiwan's OTT network; (3) Netflix's advantage from being a structural hole spanner, with local players lacking a reciprocal relationship; (4) reinforced structural holes in the Taiwanese OTT industry; and (5) opportunities for local Taiwanese OTT operators to gain an advantage. The findings identified the existence of structural holes and the following four dimensions of disconnection: structural holes from a lack of global-scale capital among local players, structural holes due to an imbalance between production and sales, weakness of local platforms leading to expanded structural holes, and structural holes in the OTT industry allowing piracy actors to play bridging roles. Domestic operators lack strong platforms, market share, and scale, with most struggling to build brands, highlighting their limited key resources. Overall, domestic operators hold no significant competitive advantage. The findings pave the way for identifying strategies to improve the industry's structure to prevent local OTT players from becoming even more marginalized.