Is “Free” the Future of Digital Markets? An Assessment of the Willingness to Pay for Online Video Consumption

Dejean, Sylvain

Is “Free” the Future of Digital Markets? An Assessment of the Willingness to Pay for Online Video Consumption - 2011.


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This paper aims to assess the willingness to pay for online video content in a context where consumers enjoy free content. Using survey data, we find that the online and offline consumptions of video content are interconnected. Our findings also suggest that a viable business model of online video service should break the current chronology of the media and offer a large catalog of content covering both hits or best sellers and the long tail that takes into account the heterogeneous preferences and needs of consumers.

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