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Keep it, shave it, cut it: A closer look into consumers’ video viewing behavior

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  • Fudurić, Morana
  • Malthouse, Edward C.
  • Viswanathan, Vijay

Abstract

The convergence of communications, information, entertainment, commerce, and computing—combined with a rising number of new services—has caused changes in the way people access and consume media. In recent months, the phenomenon of viewing audiences shifting wholly or partially from cable TV providers to over-the-top (OTT) media, also known as cord cutting or cord shaving respectively, has gained much attention. Despite anecdotal evidence of cord cutting and cord shaving presented in the trade press and industry conferences, there has been little rigorous examination of the true effect that cord cutting or cord shaving may have on TV networks and the media industry at large. In this article, we use behavioral data from a leading cable operator in the U.S. to identify and describe the key viewer segments. We also conduct simulations to examine the effects and implications of cord cutting and cord shaving from a customer lifetime value perspective for content providers, content distributors, and advertisers.

Suggested Citation

  • Fudurić, Morana & Malthouse, Edward C. & Viswanathan, Vijay, 2018. "Keep it, shave it, cut it: A closer look into consumers’ video viewing behavior," Business Horizons, Elsevier, vol. 61(1), pages 85-93.
    • Handle: RePEc:eee:bushor:v:61:y:2018:i:1:p:85-93
    DOI: 10.1016/j.bushor.2017.09.008
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    References listed on IDEAS

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    1. Shin, Dong-Hee, 2012. "What makes consumers use VoIP over mobile phones? Free riding or consumerization of new service," Telecommunications Policy, Elsevier, vol. 36(4), pages 311-323.
    2. Aniruddha BANERJEE & James ALLEMAN & Paul RAPPOPORT, 2013. "Video-Viewing Behavior in the Era of Connected Devices," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(92), pages 19-42, 4th quart.
    3. Shankar, Venkatesh & Balasubramanian, Sridhar, 2009. "Mobile Marketing: A Synthesis and Prognosis," Journal of Interactive Marketing, Elsevier, vol. 23(2), pages 118-129.
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    1. Robert W. Palmatier & Andrew T. Crecelius, 2019. "The “first principles” of marketing strategy," AMS Review, Springer;Academy of Marketing Science, vol. 9(1), pages 5-26, June.
    2. Jung, Juan & Melguizo, Ángel, 2023. "Is your netflix a substitute for your telefunken? Evidence on the dynamics of traditional pay TV and OTT in Latin America," Telecommunications Policy, Elsevier, vol. 47(1).

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