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

Ignacio Redondo () and Diana Serrano
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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

Administrative Sciences, 2023, vol. 13, issue 5, 1-16

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.

Keywords: film business; consumer behavior; account sharing; digital piracy (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2023
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