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Giants with Feet of Clay? An Inquiry into User Payment Patterns for Subscription Video-on-Demand Services

Author

Listed:
  • Ignacio Redondo

    (Departamento de Financiación e Investigación Comercial, Universidad Autónoma de Madrid, 28049 Madrid, Spain)

  • Diana Serrano

    (Departamento de Financiación e Investigación Comercial, Universidad Autónoma de Madrid, 28049 Madrid, Spain)

Abstract

Subscription video-on-demand platforms such as Netflix and HBO Max are being increasingly challenged by the widespread practice of sharing accounts with individuals outside the household. Platforms face a massive loss of revenue due to the opportunistic behavior of many users who enjoy content without paying anything or paying only a part of the required subscription fees. This study explores which factors influence platform users to pay all, part, or none of the subscription fees. Using a cross-sectional survey from Spain, various demographic, attitudinal, and behavioral factors were identified as predictors of the patterns of full, partial, and non-payment. The findings may help platform managers tailor some interventions to monetize a larger number of actual users by deterring the opportunistic payment patterns without discouraging the full payment pattern.

Suggested Citation

  • Ignacio Redondo & Diana Serrano, 2023. "Giants with Feet of Clay? An Inquiry into User Payment Patterns for Subscription Video-on-Demand Services," Administrative Sciences, MDPI, vol. 13(5), pages 1-16, May.
    • Handle: RePEc:gam:jadmsc:v:13:y:2023:i:5:p:122-:d:1138826
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    References listed on IDEAS

    as
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