Determinants of distribution channel choice for online software license purchases: A theoretical model

Abstract

The digital nature of software products combined with the advent of the internet has allowed for the proliferation of a new software delivery option: the digital distribution of software. Unfortunately, the diffusion of this new software delivery option has also facilitated copyright infringement and the distribution of pirated content. In response to these threats, software publishers have started applying various copy protection solutions to trial versions to make it more difficult for nonlicense holders to gain full access to products beyond their evaluation periods. In an escalating effort, some software publishers are now using digital rights management (DRM) technologies (among the various other distribution options they provide to their customers) when distributing software products online. By casting the software distribution channel choice as a transaction cost analysis (TCA) problem, this research proposes a theoretical model to uncover the reasons why, when purchasing a sof)