The Impact of Actor Engagement on the Business Models of Video Game Developers

Abstract

ABSTRACT The aim of this study is to examine the impact of actor engagement, defined as an actor’s voluntary contribution of resources that go beyond the actual transaction/exchange, on the business model concept in the context of the digital media industry. Based on a literature review, the authors develop propositions about the influence of actor engagement on three elements of a company’s business model: value proposition, creation, and capture. The engagement of actors makes it possible for companies to gain access to certain resources, which fosters the development of new or the improvement of existing offerings, resources, activities, revenue models, etc. In a qualitative case study, the authors examine the business model of Blizzard Entertainment, Inc., a global developer of video game content, with a focus on the online video game service World of Warcraft. The results show that actor engagement led to several modifications in the company’s business model, affecting the three business model elements, and is thus considered a relevant driver of changes in a video game developer’s business model. This study contributes to the literature as it clarifies the meaning and relevance of actor engagement in media management. In addition, it offers practical insights into actor engagement and its business consequences.