Profitably Bundling Information Goods: Evidence from the Evolving Video Library of Netflix
نویسنده
چکیده
Using a unique dataset of the Netflix video on demand library, this article measures the characteristics of information goods important for strategically employing a mixed bundling strategy. By matching the titles entering and exiting the library to their relevant properties, I use a characteristic approach to determine when the value to Netflix of adding a title exceeds the licensing fee and when the displacement effect associated with a presence in the library dictates that the title will be offered only as a pure component. Results show that new products are more profitable to bundle, but are offered for shorter lengths of time, and that titles of median commercial success are bundled more frequently than the most and least successful. The number of similar films exiting the library is important to how likely a film is to enter, indicating strategic bundling. These results are generalizable to the streaming video industry and any information goods with rapidly diminishing
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تاریخ انتشار 2015