User Behaviors, User Engagement, and Consequences
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Paper Type
short
Paper Number
1977
Description
Video on demand (VOD) allows consumers to watch movies and TV shows whenever they want. Despite their growing importance in revenue generation relative to traditional physical formats in the home entertainment industry, how different VOD channels such as Subscription VOD (SVOD) and Transactional VOD (TVOD) interact with each other is not well studied. This study utilizes a unique dataset by NPD VideoWatch on consumers’ viewing behavior to investigate the relationship between SVOD and TVOD channels. We study naturally occurring events in which a movie title is newly added to the leading SVOD site Netflix and assess how the demand in TVOD channels changes around such events. We provide evidence suggesting that SVOD complements both digital download and digital rental. This study makes an important empirical contribution to the multi-channel management literature and provides managerial implications for content owners and streaming service providers on how to better manage VOD channels together.
Recommended Citation
Chen, Hailiang, "The Impact of Netflix Streaming on Digital Download and Digital Rental" (2020). ICIS 2020 Proceedings. 11.
https://aisel.aisnet.org/icis2020/user_behaviors/user_behaviors/11
The Impact of Netflix Streaming on Digital Download and Digital Rental
Video on demand (VOD) allows consumers to watch movies and TV shows whenever they want. Despite their growing importance in revenue generation relative to traditional physical formats in the home entertainment industry, how different VOD channels such as Subscription VOD (SVOD) and Transactional VOD (TVOD) interact with each other is not well studied. This study utilizes a unique dataset by NPD VideoWatch on consumers’ viewing behavior to investigate the relationship between SVOD and TVOD channels. We study naturally occurring events in which a movie title is newly added to the leading SVOD site Netflix and assess how the demand in TVOD channels changes around such events. We provide evidence suggesting that SVOD complements both digital download and digital rental. This study makes an important empirical contribution to the multi-channel management literature and provides managerial implications for content owners and streaming service providers on how to better manage VOD channels together.
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