Is OTT Video a Substitute for TV? Policy Insights from Cord-Cutting

• 成果类型: Article
• 署名作者: Malone, Jacob B.; Nevo, Aviv; Nolan, Zachary; Williams, Jonathan W.
• 署名单位: University of Pennsylvania; University of Delaware; University of North Carolina; University of North Carolina Chapel Hill
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/rest_a_01132
• 发表日期: 2023-11
• 页码: 1615-1623
• 关键词: net neutrality; network neutrality; monopoly; internet; demand

摘要

The video entertainment industry is experiencing increases in over-the-top (OTT) video usage and cord-cutting behavior. Using unique panel data from 2012-2016, we document the behavior of the 2.4% of households who cut the cord annually. After dropping TV, these households increase internet usage by 22%, reduce payments to multiple-system operators (MSOs) by 50%, and 16% acquire new OTT video subscriptions. These results indicate meaningful substitution between OTT video and TV and suggest that competition authorities should consider broadening market definitions. MSOs appear to have little incentive to degrade OTT video, despite OTT video's contribution to declining TV revenues.