Keep it, shave it, cut it: A closer look into consumers’ video viewing behavior

Morana Fudurić*, Edward Carl Malthouse, Vijay Viswanathan

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

10 Scopus citations

Abstract

The convergence of communications, information, entertainment, commerce, and computing—combined with a rising number of new services—has caused changes in the way people access and consume media. In recent months, the phenomenon of viewing audiences shifting wholly or partially from cable TV providers to over-the-top (OTT) media, also known as cord cutting or cord shaving respectively, has gained much attention. Despite anecdotal evidence of cord cutting and cord shaving presented in the trade press and industry conferences, there has been little rigorous examination of the true effect that cord cutting or cord shaving may have on TV networks and the media industry at large. In this article, we use behavioral data from a leading cable operator in the U.S. to identify and describe the key viewer segments. We also conduct simulations to examine the effects and implications of cord cutting and cord shaving from a customer lifetime value perspective for content providers, content distributors, and advertisers.

Original languageEnglish (US)
Pages (from-to)85-93
Number of pages9
JournalBusiness Horizons
Volume61
Issue number1
DOIs
StatePublished - Jan 1 2018

Keywords

  • Consumer behavior
  • Cord cutting
  • Customer lifetime value
  • Over-the-top media

ASJC Scopus subject areas

  • Business and International Management
  • Marketing

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