Analysing the effect of digital technology on channel strategy, power and disintermediation in the home video market: the demise of the video store?

Abstract

The antecedents of channel power (e.g. El-Ansary and Stern, 1972) and the impact of channel structure ( e.g. Anderson and Narus,1984) on channel dynamics have long been important topics within the channel literature. In addition to the theoretical and methodological contributions, research in these areas has helped channel managers to understand how power is generated and used in coordinating distribution strategies in different contexts. The study presented in this paper builds upon these previous literatures. this paper poses two questions of interest to distribution channel researchers: (1) What is the likely course of home video distribution given new available digital technology ; in particular, do available trends support (a) disintermediation, (b) more intermediation, or (c) re-intermediation? (2) What are the likely effects of new digital technology on channel power within the home video distribution channel?