Impact of mobile channel adoption on video consumption

Abstract

The introduction of a mobile channel in traditional pay TV(Video-On-Demand) service has created an additional accessibility which resolves the constraints of place on TV. In this thesis, we seek to understand and measure the causal impact of a mobile channel on on-demand video consumption. In doing so, we examine the impact of the mobile channel on TV. To empirically identify our result, we rely on a unique data set from particular on-demand service provider in South Korea and exploit a natural experiment via the mobile adoption. The results show that users’ adoption of a mobile channel significantly increases the total time spent on VOD via TV and the number of contents consumed. Our results demonstrate that the mobile channel acts as a complement for the TV. We provide insights for strategists and marketers in the VOD industry about how they can increase consumer usage in the emerging OTT market.