Graduation Year

2023

Document Type

Open Access Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Second Department

Organizational Studies

Reader 1

Sean Flynn

Reader 2

Jeff Lewis

Rights Information

© 2022 Emily J Anderson

Abstract

In the past few years, we have seen a massive change in television viewing habits. More Americans subscribe to video streaming services than to cable and satellite, and most subscribe to several. While the streaming industry is rapidly growing, it is unclear where the industry is heading, and projections in the literature vary. Using data I collected and aggregated into original data sets, I explore the evidence to uncover patterns and trends. Specifically, I analyze the pricing strategies that select streaming services have used over time. My research focuses on six popular subscription video-on-demand services with similar organizational structures: Netflix, Hulu, Disney+, HBO Max, Paramount+, and Peacock. I determine that the industry operates under monopolistic competition. Further, I find that while the market equilibrium quantity is increasing, streaming services are waiting until they establish a strong customer base before raising prices. I conclude with predictions for the futures of the six services, with particular concern for Netflix’s prospects.

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