The Economics of Video On Demand: A Simulation Analysis

  title={The Economics of Video On Demand: A Simulation Analysis},
  author={Ronald J. Rizzuto and Michael O. Wirth},
  journal={Journal of Media Economics},
  pages={209 - 225}
Simulation analysis and sensitivity analysis are used to identify the factors most likely to determine whether video on demand (VOD; i.e., movies on demand) is economically viable. The impact of subscription video on demand (SVOD) and of time-shifted, on-demand services on VOD economics is also explored. VOD movie buy rates, Hollywood and cable operator revenue splits, and VOD peak utilization rates are identified as key economic viability factors. SVOD and/or time-shifted services could also… 
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