Анотація The article describes network effects as one of the features of digital media markets. It reviews prior research in this area, demonstrating that a few concepts are supported by empirical evidence. One of the most accurate concepts, Metcalfe’s law, which was developed in the early 1980s, states that the value of a network is proportional to its squared size. The present research validates the accuracy of this law using Meta and Netflix data from 2011 to 2020. Both companies have differences in revenue, user acquisition, business model and technology. However, both of their data fit Metcalfe’s law well.
Ключові слова: digital media, digital media market, network effects, Metcalfe’s law, Meta, Netflix, цифрові медіа, ринок цифрових медіа, мережеві ефекти, закон Меткалфа
Briscoe, B., Odlyzko, A. and Tilly, B., 2006. Metcalfe’s law is wrong. IEEE Spectrum, 43(7), pp.34-39. DOI: 10.1109/MSPEC.2006.1653003
Madureira, A, den Hartog, F, Bouwman, H, and Baken, N., 2013. Empirical validation of Metcalfe’s law: How Internet usage patterns have changed over time. Information Economics and Policy, 25(4), pp.246-256. DOI: https://doi.org/10.1016/j.infoecopol.2013.07.002
Rohlfs, J., 1974. A Theory of Interdependent Demand for a Telecommunications Service. Bell Journal of Economics and Management Science, 5(1), pp.16-37. DOI: https://doi.org/10.2307/3003090
Van Hove, L., 2014. Metcalfe’s law: Not so wrong after all. Netnomics, 15(1), pp.1-8. DOI: 10.1007/s11066-014-9084-1
Zhang, X.Z., Liu, J.J. and Xu, Z.W., 2015. Tencent and Facebook data validate Metcalfe’s law. Journal of Computer Science and Technology, 30(2), pp.246-251. DOI: 10.1007/s11390-015-1518
Цитування
ДСТУ ГОСТ 7.1-2006
Bekh A. Metcalfe’s law in the digital media market / A. Bekh // Вісник Маріупольського державного університету. Сер. : Економіка. – 2021. – Вип. 22. – С. 68-72.
Harvard Referencing Style
Harvard Referencing Style
Bekh, A., 2021. Metcalfe’s law in the digital media market. Vìsnik Marìupolʹsʹkogo deržavnogo unìversitetu. Serìâ: Ekonomìka, 22, pp. 68-72.