Experimental evidence on demand for “on-demand” entertainment

Abstract

This study applies stated-preference choice experiments and accompanying surveys to examine how Subscription Video on Demand (SVoD) has disrupted film and television consumption. We examine demand for a large set of traditional consumption alternatives, such as cinema and free-to-air TV, as well as newer internet-based subscription services, such as Netflix. We consider a range of alternative-specific product attributes-including price, viewing quality, and release delay-that allow us to quantify substitution effects and willingness-to-pay estimates. In addition, we also consider illegal viewing alternatives, with associated attributes related to (potential) punishment that inform on the efficacy of policy against digital piracy. Our primary results reveal that while some traditional alternatives remain important, consumers derive significant utility from SVoD, which provides a large surplus at current pricing. We also observe that marginal effects and willingness-to-pay estimates are sensitive to ex-ante interest in a film or TV series. Moreover, we provide evidence that consumers can be segmented in relation to (survey-reported) piracy experience, as well as perceptions of punishment risk and (industry) damage associated with piracy. We also find some evidence that increasing punishment probability and fines may discourage illegal consumption. Finally, we provide some validation of our results with a follow-up survey conducted six months after the experiment.

The battle of YouTube, TV and Netflix: an empirical analysis of competition in audiovisual media markets

“…Confirming insights of studies by Chen (2019) andFuduric et al (2020), genres such as sports and news favor TV. There is also a strong preference for Netflix-style PVoD when it comes to serial content (in line with McKenzie et al 2019), thus, competitive relations seem rather weak in this case in our sample. Therefore, we cannot confirm results from Shelton et al (2016) and in the U.S. market, showing little influence of content categories.…”

“…2). Closely connected research on PVoD streaming vs. TV shows substitutive characteristics between the two services (McKenzie et al 2019;Fudurić et al 2020). Given the state of the German market at the time of the survey, this implies that contentwise TV and PVoD à la Netflix are close competitors.…”

“…There are some empirical studies that take a closer look at the comparison of traditional audiovisual content (i.e., TV) and audiovisual on-demand services. While previous studies researched the relationship between PVoD and traditional TV (Shelton et al 2016;McKenzie et al 2019), AVoD services à la YouTube were not considered. By contrast, some of them distinguish different types of traditional TV (by transmission (freeto-air, cable, satellite) and/or by payment model) or include cinemas-something we are not doing due to our focus on VOD types.…”

How over-the-top (OTT) platforms engage young consumers over traditional pay television service? An analysis of changing consumer preferences and gamification

“…As per the Allied Market Research, the global OTT market stood at $97.43bn in 2017 and is expected to have a market size of $332.52bn by 2025 (Rake and Baul, 2017). Cinema and Television (TV) still offer much appeal to consumers, but it is evident that online platforms like SVoDs are creating disruption and are highly valued by consumers (McKenzie et al, 2019).…”

Pandora streaming radio

“…Što se podrazumijeva pod novim medijima donekle varira, ali uglavnom uključuje internet, video i računalne igre i mobilne uređaje, uključujući iPod, PDA i telefone (Marshall, 2009: 81). U televizijskoj i filmskoj industriji Netflix i ostale usluge, kao što je video na zahtjev stvorile su izazove za tradicionalnu zemaljsku televiziju, kao i za klasične kino dvorane (McKenzie et al, 2019). U industriji knjiga dolazak e-knjiga i uređaja poput Kindlea na sličan su način doveli u pitanje tradicionalni model proizvodnje, distribucije i korištenja tiskanih medija (Chen et al, 2018).…”