The Effect of Binge-Watching on the Subscription of Video on Demand: Results from Randomized Experiments

• 成果类型: Article
• 署名作者: de Matos, Miguel Godinho; Ferreira, Pedro
• 署名单位: Universidade Catolica Portuguesa; Carnegie Mellon University; Carnegie Mellon University
• 刊物名称: INFORMATION SYSTEMS RESEARCH
• ISSN/ISSBN: 1047-7047
• DOI: 10.1287/isre.2020.0948
• 发表日期: 2020
• 页码: 1337-1360
• 关键词: consumption; promotions; ECONOMICS; consumers; variety; IMPACT; MODEL; LIFE; tv

摘要

We analyze the outcomes of two randomized field experiments to study the effect of binge-watching on subscription to video on demand. In both cases, we offered access to subscription VoD (SVoD) to a random set of households for several weeks and used another random set of households as a control group. In both cases, we find that the households that binge-watch TV shows are less likely to pay for SVoD after these free trials. Our results suggest that binge-watchers deplete the content of interest to them very quickly, which reduces their short-term willingness to pay for SVoD. We also show that recommendation reminders aimed at widening the content preferences of households offset the negative effect of binge-watching and lessen the concerns of binge-watchers with lack of content refresh. We discuss that these recommendation reminders may help content providers manage supply costs, which may otherwise become prohibitive with frequent updates to SVoD catalogs.