Analysis of sequential distribution on video-on-demand platforms

Abstract

The sequential distribution of titles throughout different channels is a prevalent profitmaximising strategy in the movie industry. However, cross-channel effects can occur where a product’s distribution in one channel affects sales in another channel. I analyse how the availability of a version of a movie in a digital channel impacts sales in another digital channel in the context of a Video-on-Demand platform offering titles to lease and to buy. I use secondary data from a Video-on-Demand platform, exploiting the sequential entry and exit of a movie’s versions. I find that for movies available for more than one yearbefore being offered as two versions, adding the second version increases the pre-existing version’s sales. Contrarily, if movies are available for less than one year before being distributed as two versions, sales of the pre-existing version decrease. Thus, my results suggest that depending on the delay between introducing the version to lease and to buy adding the version to buy either has a positive information spillover or a cannibalisation effect.

Date of Award	30 Jul 2021
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Miguel Godinho de Matos (Supervisor)