In communication industries, firms often preannounce their new products long before they actually launch them on the market. In such industries, main products are used with contingent products which affect their market value, creating indirect network externalities. Through a simulation model, our paper shows that the initial sales of the product completely determine its success on the market, whether this success is related to the diffusion of the product (in a monopoly case) or to the market shares of various companies (competition). Thus, preannouncements have a major impact on the future of the product, because they influence expectations of both consumers and program providers. However, to be efficient, a preannouncement must inform these two targets and coordinate their expectations.
LE NAGARD, E. and MANCEAU, D. (1997). The Role of New Product Preannouncements in the Presence of Complementary Products. In: 4th International Product Development Management Conference. Stockholm School of Economics, pp. 487-500.