Paper Number
2484
Paper Type
Completed
Description
Subscription sharing, where one shares her premium digital services subscription with other users, has become common due to subscription-sharing platforms like Togetherprice, Gowd, and Sharesub. This raises a question: Does it still make economic sense to offer a menu of subscription plans (e.g., an individual plan as well as a discounted family plan)? In this study, we look at a monopolist service provider that offers both plans but faces the potential threat of subscription sharing. We analyze the optimal prices and the impact of sharing on profit, customer surplus, and overall society benefits. Our results indicate that even with subscription sharing, offering both plans is at least as profitable as only offering individual plans. Under certain conditions, subscription sharing can even boost profits. Furthermore, our numerical analysis suggests that subscription sharing can benefit society. These findings suggest that subscription sharing is not necessarily as troublesome as one would have expected.
Recommended Citation
Wu, Xiaokun; Wu, Shin-yi; and Zhang, Zhongju, "An Economic Analysis of Subscription Sharing of Digital Services" (2023). ICIS 2023 Proceedings. 5.
https://aisel.aisnet.org/icis2023/emobilecomm/emobilecomm/5
An Economic Analysis of Subscription Sharing of Digital Services
Subscription sharing, where one shares her premium digital services subscription with other users, has become common due to subscription-sharing platforms like Togetherprice, Gowd, and Sharesub. This raises a question: Does it still make economic sense to offer a menu of subscription plans (e.g., an individual plan as well as a discounted family plan)? In this study, we look at a monopolist service provider that offers both plans but faces the potential threat of subscription sharing. We analyze the optimal prices and the impact of sharing on profit, customer surplus, and overall society benefits. Our results indicate that even with subscription sharing, offering both plans is at least as profitable as only offering individual plans. Under certain conditions, subscription sharing can even boost profits. Furthermore, our numerical analysis suggests that subscription sharing can benefit society. These findings suggest that subscription sharing is not necessarily as troublesome as one would have expected.
When commenting on articles, please be friendly, welcoming, respectful and abide by the AIS eLibrary Discussion Thread Code of Conduct posted here.
Comments
22-Digital