The role of YouTube in the digitalization of TV: A Case Study of Novel Value Co-creation Practices at United Screens

Abstract

Research has shown how incumbent firms in content-based industries (e.g. music, news and photography) were radically affected by digitalization as powerful digital platforms emerged as new loci of innovation. While scholars have suggested that digital technology calls for novel organizing logics and value creation processes, there is a need for further knowledge of what characterizes them, and how they emerge in practice. In addressing this gap we studied United Screens, a firm that capitalizes on the digitalization of video contents by managing major YouTubers and connecting them with advertisers. The study shows how United Screens leverages the layered modularity of digital product architectures for new constellation-based modes of value co-creation. Overall, the paper contributes to research on digital innovation by shedding light on how a novel actor category champions content-driven value creation, an underexplored aspect of digital platform ecosystems.