Authorized and Unauthorized Consumption of SVOD Content: Modeling Determinants of Demand and Measuring Effects of Enforcing Access Control

Abstract

Consumers are attracted by the increasing number of available SVOD platforms, but it would be too expensive to pay the subscription fees for all of them. To reduce costs, consumers can combine the use of proprietary subscriptions, non-proprietary subscriptions, and illegal streaming sites. In turn, platforms could enforce access control, a decision that might produce the desired reduction in non-proprietary subscriptions but also an undesired reduction in proprietary subscriptions. The effects of this decision and the determinants of SVOD content demand remain largely unexplored. We propose a baseline model where the SVOD content demand is driven by variety seeking, household financial situation, ethical evaluation, and social norms, as well as a change model where the subscription variation is driven by users’ trait reactance and perceived fairness of the decision. We conducted a survey on the current ways SVOD content is consumed and responses to a hypothetical access control enforcement, with four randomized versions of the authentication mode. Results confirmed many of the proposed determinants and showed a noteworthy reduction in proprietary subscriptions due to the control enforcement but no effect due to the authentication modes. All these findings may help improve future models of SVOD content consumption and better address the difficult challenge of converting unauthorized users into authorized ones.

Keywords

• film business
• subscription video-on-demand
• account sharing
• digital piracy
• psychological reactance
• fairness theory