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    Uncovering the effects of digital movie format availability on physical movie sales

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    Author
    Hashim, Matthew J.
    Ram, Sudha
    Tang, Zhulei
    Affiliation
    Univ Arizona, Dept MIS
    Issue Date
    2018-11-06
    Keywords
    Digital goods
    Cannibalization
    Multi-channel
    DVD movies
    
    Metadata
    Show full item record
    Publisher
    ELSEVIER SCIENCE BV
    Citation
    Hashim, M. J., Ram, S., & Tang, Z. (2019). Uncovering the effects of digital movie format availability on physical movie sales. Decision Support Systems, 117, 75–86. https://doi.org/10.1016/j.dss.2018.10.016 ‌
    Journal
    DECISION SUPPORT SYSTEMS
    Rights
    Copyright © 2018 Elsevier B.V. All rights reserved.
    Collection Information
    This item from the UA Faculty Publications collection is made available by the University of Arizona with support from the University of Arizona Libraries. If you have questions, please contact us at repository@u.library.arizona.edu.
    Abstract
    The impact of multi-channel technology-enabled digital goods on the sales of the physical counterpart faces uncertainty in the electronic commerce domain. We address the issue empirically by identifying the effect of the availability of digitally-delivered movies on physical DVD movie sales. Unique to our study is our interest in not only purchased digital goods but rented digital goods as well. We construct a robust panel dataset consisting of movie data collected from Amazon and Barnes and Noble on the same day for every movie observed. A key feature of our dataset is the multi-channel availability of digital purchase and digital rental movie formats at Amazon. Our results show that the availability of the digital purchase format does not have a significant effect on DVD sales. Surprisingly, the availability of the digital rental format is associated with a significant reduction in DVD sales. The results imply that a product substitution effect may be occurring between the digital rental and the physical DVD purchase of the same movie. We conduct robustness tests to show under which conditions the effect is greatest. Our results also provide practical implications to inform strategies regarding movie format release windows.
    Note
    24 month embargo; published online: 6 November 2018
    ISSN
    0167-9236
    DOI
    10.1016/j.dss.2018.10.016
    Version
    Final accepted manuscript
    ae974a485f413a2113503eed53cd6c53
    10.1016/j.dss.2018.10.016
    Scopus Count
    Collections
    UA Faculty Publications

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