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In addition, they had sales data for several seasons, allowing them to make an alternative comparison between years, where the streaming windows varied. PBS’ free treaming window for Downton Abbey season 5 This means that some were streamable for more than a month, while others only for a week, or two. The researchers were able to estimate the impact in a natural experiment, since PBS was required to pull the free streams for all episodes at the same time. The results, published in a paper for the upcoming International Conference on Information Systems, show that legal streaming options can hurt download sales significantly.
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Using streaming and sales data for the popular show Downton Abbey, provided by PBS, they estimate the impact of free streaming on direct download (EST) sales.
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For example, should you allow people to stream your content for free online?Ī new study by Carnegie Mellon University researchers aims to provide some empirical evidence on this issue. The next challenge is to set them up in a way so that people will actually use them, while optimizing revenue long-term. However, having legal options available is just a tiny part of the puzzle. The movie industry responded by offering their own online video download options, and with bandwidth getting cheaper and more readily available, streaming services soon followed. The first wave of change was triggered by BitTorrent, which allowed downloading huge video files with ease, something that wasn’t possible before. Over the past decade, TV and movie companies have taken part in a massive experiment in which they’ve had to reinvent their business models, adopting to rapidly changing demands from consumers.