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Video-Viewing Behavior in the Era of Connected Devices

Author

Listed:
  • Aniruddha BANERJEE

    (Centris Marketing Science, USA)

  • James ALLEMAN

    (University of Colorado, USA)

  • Paul RAPPOPORT

    (Temple University and SBRC, USA)

Abstract

In the United States and elsewhere, traditional sources of television programming (or "pay TV") are facing rising competition from bypass or over-the-top ("OTT") alternatives in the form of streamed or downloaded access to video content. As a result, consumers of video content now fall into three segments: "cord loyalists" that continue to use pay TV exclusively, "non-pay TV" that includes consumers who have cut the video cord, i.e., dropped pay TV entirely in favor of OTT, and "cord couplers" that use both pay TV and OTT. Household demographics, use of connected OTT-capable devices, and availability of subscription-based and free streaming video services are hypothesized to influence how consumers choose to view video content. This paper reports on an empirical study of US households to answer two questions: (1) do households transition among the three OTT segments over time? and (2) what factors determine the household's decision to stay in, or move from, an OTT segment? Using a longitudinal survey panel of 7,655 unique households observed over three consecutive quarters in 2011 and relative risk ratios from multinomial choice models estimated using the data, the study confirms that connected devices (both their use and their variety) and certain key demographics (age, annual household income, and race/ethnicity) influence the household choice of OTT segment.

Suggested Citation

  • 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.
    • Handle: RePEc:idt:journl:cs9201
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    References listed on IDEAS

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    1. Sophia Rabe-Hesketh & Anders Skrondal & Andrew Pickles, 2002. "Reliable estimation of generalized linear mixed models using adaptive quadrature," Stata Journal, StataCorp LP, vol. 2(1), pages 1-21, February.
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    Cited by:

    1. Kwak, Kyu Tae & Oh, Chae Ju & Lee, Sang Woo, 2021. "Who uses paid over-the-top services and why? Cross-national comparisons of consumer demographics and values," Telecommunications Policy, Elsevier, vol. 45(7).
    2. Chen, Yi-Ning Katherine, 2017. "Competitions among OTT TV Platforms and Traditional Television in Taiwan: A Niche Analysis," 14th ITS Asia-Pacific Regional Conference, Kyoto 2017: Mapping ICT into Transformation for the Next Information Society 168477, International Telecommunications Society (ITS).
    3. 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.
    4. Katherine Chen, Yi-Ning, 2019. "Competitions between OTT TV platforms and traditional television in Taiwan: A Niche analysis," Telecommunications Policy, Elsevier, vol. 43(9).
    5. Park, Sungwook & Kwon, Youngsun, 2019. "Research on the Relationship between the Growth of OTT Service Market and the Change in the Structure of the Pay-TV Market," 30th European Regional ITS Conference, Helsinki 2019 205203, International Telecommunications Society (ITS).

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    More about this item

    Keywords

    pay TV; OTT; cord loyalists; non-pay TV; cord couplers; transition among OTT segments; household demographics; connected devices; relative risk ratio.;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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