Start Date
11-12-2016 12:00 AM
Description
The rise of online digital platforms has caused a massive increase in the number of viewers who consume entertainment via online streaming. To cater to this audience, television networks have started making their content instantly available on both paid and free online streaming platforms after broadcast. However, this raises questions as to what impact these free streaming channels have on consumption in paid channels, such as digital Electronic Sell Through (EST). In this paper, we empirically analyze whether free streaming on a major television network’s online platform cannibalizes the sales on paid channels. To do this, we use a unique dataset provided by a leading television network in the United States. We exploit the natural variation in the online streaming schedules of a prominent television show in our identification strategy. Using a difference in difference approach we find that free streaming availability cannibalizes EST sales by about 8.4%.
Recommended Citation
Ananthakrishnan, Uttara M.; Smith, Michael; and Telang, Rahul, "When Streams Come True: Estimating the Impact of Free Streaming Availability on EST Sales" (2016). ICIS 2016 Proceedings. 7.
https://aisel.aisnet.org/icis2016/EBusiness/Presentations/7
When Streams Come True: Estimating the Impact of Free Streaming Availability on EST Sales
The rise of online digital platforms has caused a massive increase in the number of viewers who consume entertainment via online streaming. To cater to this audience, television networks have started making their content instantly available on both paid and free online streaming platforms after broadcast. However, this raises questions as to what impact these free streaming channels have on consumption in paid channels, such as digital Electronic Sell Through (EST). In this paper, we empirically analyze whether free streaming on a major television network’s online platform cannibalizes the sales on paid channels. To do this, we use a unique dataset provided by a leading television network in the United States. We exploit the natural variation in the online streaming schedules of a prominent television show in our identification strategy. Using a difference in difference approach we find that free streaming availability cannibalizes EST sales by about 8.4%.