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The emergence of streaming and its impact on pricing and product strategies of content providers

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  • Mark Bender
  • Esther Gal‐Or
  • Tansev Geylani

Abstract

We investigate how an established content provider with a digital store responds to emerging streaming technology. Under certain circumstances, the provider may need to lower the sale price of his downloads to encourage consumers to learn their preferences through streaming. When competing against a rival streaming service, if the provider can sufficiently differentiate his service, the provider should operate in the streaming market and charge a higher subscription fee for his services. We also consider an environment in which the provider abandons the sale of content and competes in streaming and find that the pricing strategies change.

Suggested Citation

  • Mark Bender & Esther Gal‐Or & Tansev Geylani, 2022. "The emergence of streaming and its impact on pricing and product strategies of content providers," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2148-2171, September.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:6:p:2148-2171
    DOI: 10.1002/mde.3515
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