The Cost of Free: The Effects of “Wait-for-Free” Pricing Schemes on the Monetization of Serialized Digital Content

2023 | Management Information Systems Quarterly | Citations: 0

Authors: Choi, Angela; Rhee, Ki-Eun; Yoon, Chamna; Oh, Wonseok

Abstract: Leveraging a combination of analytical frameworks and empirical assessments, th ... Expand

Abstract: Leveraging a combination of analytical frameworks and empirical assessments, this study investigates the effects of wait-for-free (WFF) pricing schemes on the monetization of serialized, digital entertainment content, which has become increasingly pervasive on online platforms. WFF pricing is a strategy in which consumers are given the option to either wait a certain amount of time to acquire digital content at no cost or pay to consume it immediately. We evaluate the extent to which habit formation and presentbiased preferences driven by the consumption of addictive stock affect individual consumers' willingness to wait (or pay) for content, which, in turn, determines the efficacy of WFF pricing. We also examine the conditions under which consumers switch from waiting for free content to instantaneously purchasing content. Our findings indicate that WFF pricing increases the sales of serialized digital content, generating new demand from customers who would otherwise forgo participation in the market. In addition, the pricing design effectively generates sustained profits in the long run. We found that most consumers who initiate a purchase either upon initial market entry or upon switching continue to purchase as new episodes become available. Moreover, the results indicate that as a user accumulates free episodes of a specific series, given extended waiting periods, the likelihood of their conversion from a wait-for-free customer to an instant-purchase customer increases. In particular, WFF pricing effectively augments the willingness to pay of low-valuation consumers as habit formation builds up through time with the free consumption of serialized content. One free episode can elevate the likelihood of consumer purchase by up to 13%. However, as the number of free episodes consumed goes beyond a threshold, the likelihood of conversion decreases. We conclude with a discussion of managerial implications that can help content providers monetize their serialized digital content products. Collapse

Topics: price management consumer behavior advertising management digital good customer satisfaction

Methods: mathematical model robustness check econometric modeling proportional hazards model survival analysis

Theories: behavioral economics

Mapping the Metaverse – Knowledge Generation Structures in a Nascent Ecosystem

2023 | International Conference on Information Systems | Citations: 0

Authors: Pohsner, Henrik; Hanelt, André

Abstract: The so called Metaverse is among the most popular emerging themes in contempora ... Expand

Abstract: The so called Metaverse is among the most popular emerging themes in contemporary business and academic discourses related to digital transformation. Beside the hype and buzz around the topic, recent research has established important progress related to the technical foundations and use-case scenarios. However, the preconditions to manifest these promising potentials, that is the underlying socio-technical ecosystem, is, to date, not well-understood. In particular, we still do not know much about the key building blocks of technical knowledge and who creates this knowledge base necessary for the Metaverse. Therefore, in this study, employing cluster-analysis to a complex dataset involving 2297 Metaverse-patents, we reveal key areas of technological knowledge as well as important actor groups shaping the development of the knowledge base. Building upon these inductively derived knowledge generation structures, we discuss important implications for managers and academics and propose an Information Systems research agenda to further explore the emerging Metaverse ecosystem. Collapse

Topics: virtual reality knowledge base database system IT skill innovation management

Methods: cluster analysis machine learning classification method theoretical contribution

More than watching: An empirical and experimental examination on the impacts of live streaming user-generated video consumption

2023 | Information & Management | Citations: 0

Authors: Zhang, Yuan; Hua, Lei; Jiao, Yue; Zhang, Jie; Saini, Ritesh

Abstract: Live streaming user-generated video (UGV), a nascent format of crowdsourced cont ... Expand

Abstract: Live streaming user-generated video (UGV), a nascent format of crowdsourced content, has grown massive popularity among social media users and is believed to have substantial potential business influences. However, industry practitioners express concerns regarding this new form on social media platforms and the influences of live streaming UGV consumption lack research. Motivated such, through a uniquely merged dataset from the video game industry, we conduct a series of panel time-series empirical analyses to investigate the business value of live streaming UGV consumption. Further, we propose a conceptual framework based on the sense of com­ munity literature to understand the consequences of live streaming UGV consumption and verify it through several online experiments. This research contributes to the IS literature by shedding light on the influences of emergent crowdsourced content, providing a conceptual framework to existing literature, and offering rich managerial implications and guidelines to managers regarding utilizing live streaming UGVs. Collapse

Topics: video streaming service digital service marketing management organizational value crowdsourcing

Methods: experiment survey parametric test Student's t-test nonparametric test

Return of the Movie Night? Analyzing the Impact of Netflix Subscriptions on Offline Movie Spending

2022 | International Conference on Information Systems | Citations: 0

Authors: Fang, Sihan; Gopal, Anand; Kwon, Hyeokkoo Eric; Park, Yongjin

Abstract: The subscription-based business model is disruptive in the copyright industries ... Expand

Abstract: The subscription-based business model is disruptive in the copyright industries. More than a digitalized distribution channel, it fundamentally transforms both supply and demand sides regarding content provision and consumption. However, there is scant evidence about how and why it affects the local traditional industry. This study investigates the impact of the subscription-based business model on offline activity consumption in the motion picture industry. Leveraging a unique dataset with individuals' every transaction record and a difference-in-differences approach, we conclude that Netflix subscription increases offline movie consumption. We support that individuals have unmet hedonic and social demands with the imperfect disruptive technology. They, therefore, attend more hedonic and social activities, including movies, dining, entertainment, to satisfy their unmet needs. In addition, the identified effect is more pronounced for individuals with higher hedonic (i.e., younger people) and social (i.e., lower-income and residents of smaller towns) needs. Theoretical and practical implications are discussed. Collapse

Topics: digital service Netflix streaming service video streaming service mobile application

Methods: experimental group robustness check longitudinal research difference in differences quasi experiment

Beyond the Rating Matrix: Debiasing Implicit Feedback Loops in Collaborative Filtering

2022 | International Conference on Business Informatics | Citations: 0

Authors: Krause, Thorsten; Stattkus, Daniel; Deriyeva, Alina; Beinke, Jan Heinrich; Thomas, Oliver

Abstract: Implicit feedback collaborative filtering recommender systems suffer from exposu ... Expand

Abstract: Implicit feedback collaborative filtering recommender systems suffer from exposure bias that corrupts performance and creates filter bubbles and echo chambers. Our study aims to provide a practical method that does not inherit any exposure bias from the data given the information about the user, the choice, and the choice set associated with each observation. We validated the model’s functionality and capability to reduce bias and compared it to baseline mitigation strategies by simulation. Our model inherited little to no bias, while the other approaches failed to mitigate all bias. To the best of our knowledge, we are first to identify a feasible approach to tackle exposure bias in recommender systems that does not require arbitrary parameter choices or large model extensions. With our findings, we encourage the recommender systems community to move away from rating-matrix-based towards discrete-choice-based models. Collapse

Topics: recommender system logistics management collaborative filtering online learning system electronic commerce

Methods: simulation design artifact computational algorithm literature study k-nearest neighbor

Coopetition in Entertainment Live Streaming: A Research Agenda

2022 | Americas Conference on Information Systems | Citations: 0

Authors: Song, Xiaofei; Fu, Mengyao; Fang, Jie; Cai, Zhao; Chong, Alain

Abstract: The growth of the live streaming industry has introduced a novel digital entert ... Expand

Abstract: The growth of the live streaming industry has introduced a novel digital entertainment environment and laid the foundation for advancing research in a relatively untouched space. Co-broadcasting is an increasingly popular type of live event where streamers teamed together to co-create content on a shared screen. Balancing between competition and collaboration, co-broadcasting resembles a coopetitive activity where streamers collaborate to deliver entertaining content while cultivating a competitive atmosphere to spur viewer engagement simultaneously. In turn, such streamer-viewer dynamics have given rise to ample opportunities for research. To this end, we advance a research agenda for co-broadcasting that distinguishes among competition, collaboration, and coopetition perspectives in putting forth knowledge gaps pertinent to each perspective. Collapse

Topics: digital entertainment

Methods: literature study

Product Meaning in Digital Product Innovation

2022 | Management Information Systems Quarterly | Citations: 11

Authors: Wang, Gongtai; Henfridsson, Ola; Nandhakumar, Joe; Yoo, Youngjin

Abstract: Digital product innovation involves a meaning-making process. Designers of digit ... Expand

Abstract: Digital product innovation involves a meaning-making process. Designers of digital innovations often challenge established product meanings as they digitize physical products, such as cars, toothbrushes, and water bottles. A significant problem for product designers, however, is striking the right balance between the newness and comprehensibility of product meanings. Failure to do so may result in a digital product innovation that is too conventional or difficult to relate to or understand. Yet, the extant digital product innovation literature pays little, if any, attention to product meaning. To fill this void, this study examines a digital product innovation project in which product designers created a digital theater with product meanings beyond those of the traditional movie theater. Our theory, grounded in in-depth data collection and analysis, explains how product designers attribute meanings to their products in the process of digital innovation by enacting two meaning-making loops: a reinforcing loop that makes the product meaning comprehensible, and a differentiating loop that captures emerging product meanings. The two loops come together via meaning sedimentation, through which a new core product meaning is created. Our study contributes to the digital product innovation literature by shedding light on the essential role of meaning-making in innovation and offers an explanatory process theory. Collapse

Topics: innovation management digital innovation digital product digital entertainment computer graphic

Methods: qualitative interview design artifact literature study archival research field study

Theories: cognitive theory theory of meaning

Creating the Virtual: The Altered Role of 3D Models in the Product Development Process for Physical and Virtual Consumer Goods

2021 | International Conference on Business Informatics | Citations: 0

Authors: Korbel, Jakob Johannes

Abstract: The role of 3D models has substantially changed for companies that focus on the ... Expand

Abstract: The role of 3D models has substantially changed for companies that focus on the creation of consumer goods. For manufacturing and retail firms, virtual objects are today the predominant medium for product development and customization while virtual world and game developers not only build their entire products based on 3D models but found that selling virtual goods in games and virtual worlds can be more lucrative than selling the actual virtual environment. The objective of this study is to emphasize the role of 3D models in the product development processes and to identify similarities and differences between both domains based on a literature review. The results imply that 3D models are today prevalent in the entire value chain of both domains, while non-functional attributes of 3D models are of increasing value. A commonality is the growing importance of the user as source of knowledge for and creator of 3D models. Collapse

Topics: new product development virtual world database system entrepreneurship participatory design

Methods: design artifact literature study simulation design methodology structured literature research

Impact of enjoyment on the usage continuance intention of video-on-demand services

2021 | Information & Management | Citations: 0

Authors: Pereira, Rita; Tam, Carlos

Abstract: Understanding how video-on-demand (VoD) technology evolves and what outcomes can ... Expand

Abstract: Understanding how video-on-demand (VoD) technology evolves and what outcomes can be expected from the continued use of VoD has a greater impact on the long-term viability of an information system. This study ex­ amines the behavioural intentions of VoD consumers to continue using the service and further examines the influence of enjoyment on the intention to continue to use. To explore the usage continuance, we adopt the expectation confirmation model (ECM) for information technology and integrate it with the hedonic system adoption model. Our aim is to address the lack of literature around the ECM-IT model extended with hedonic variables and to contribute to the small but growing body of research of VoD services. The partial least squares (PLS) method was used to analyse an online survey of 205 individuals. The results suggest that satisfaction is the greatest predictor of the usage continuance intention and enjoyment strongly impacts satisfaction. Enjoyment in a hedonic system context is a manifestation of positive emotions that are translated into satisfaction. Our model explains 48.1% of the variance of the usage continuance and 53.8% of the satisfaction. The findings of this study offer an opportunity to better understand the long-term viability of VoD Services. Collapse

Topics: perceived usefulness technology adoption hedonistic information system usage intention perceived ease of use

Methods: survey partial least squares regression conceptual modelling Kolmogorov-Smirnov test pilot survey

Theories: expectation confirmation theory technology acceptance model

Enemies or Friends? Disentangling the Role of Rivalry in Encouraging Virtual Gifting in Live Streaming PK Events

2021 | European Conference On Information Systems | Citations: 0

Authors: Song, Xiaofei; Cai, Zhao; Chong, Alain; Lim, Eric; Tan, Chee-Wee

Abstract: PK events, where two streamers are paired to compete for virtual gifts received ... Expand

Abstract: PK events, where two streamers are paired to compete for virtual gifts received in a given time, serve as an important source of revenue for Chinese live streaming platforms. Building on rivalry theory, we aim to elucidate the role of rivalry in enhancing viewers' gifting behaviors for PK events. Specifically, we posit similarity, repeated competition, and competitiveness as the antecedents of rivalry of dyadic competitive relationships, which in turn influences viewers' virtual gifting behaviors in support of their favored live streamer. To validate the hypothesized relationships, secondary data on PK events were collected from a leading live streaming platform. Findings from this study not only expand on extant literature by scrutinizing how rivalry arises on digital entertainment platforms where competitions are devised for increasing the exposure of entertainers, but also inform practitioners on how to match live streamers for PK events to maximize rivalry and viewers' gifting behaviors. Collapse

Topics: live streaming platform digital entertainment