The Battle of YouTube, TV and Netflix – An Empirical Analysis of Competition in Audio-visual Media Markets

40 Pages Posted: 14 May 2020

See all articles by Oliver Budzinski

Oliver Budzinski

Ilmenau University of Technology

Sophia Gaenssle

Ilmenau University of Technology

Nadine Lindstädt

Pforzheim University

Date Written: March 31, 2020

Abstract

The world of audiovisual online markets is rapidly changing. Not long ago, it was dominated by linear television, transmitted terrestrially, through cable networks or via satellite. Recently, streaming services like Netflix, YouTube, Amazon Prime and others have emerged as new suppliers of audiovisual content. In this quickly changing industry, competition interrelations between such different formats like traditional TV, videos on YouTube, and streaming via Netflix are subject to con-troversy. In particular, doubt is cast on services like YouTube exerting competitive pressure on services like Netflix and traditional TV. Based upon a survey with almost 3,000 participants, we provide an empirical analysis of consumption behavior of audiovisual contents. Using descriptive and analytical statistics, including multiple equation models, we show that there are specific areas within audiovisual content markets where YouTube exerts considerable competitive pressure on both Netflix and classic TV, for instance, through prime time video entertainment. However, our analysis yields differentiated results as we also identify areas where competition intensity between different service types appear to be low, for instance, through daytime and regarding the intention to shorten waiting time.

Keywords: video-on-demand, streaming markets, media economics, cultural economics, commercial television, multiple equation models, competition, consumption behavior

JEL Classification: L82, L86, Z10, M21, L13, L40, L51, C39

Suggested Citation

Budzinski, Oliver and Gaenssle, Sophia and Lindstädt, Nadine, The Battle of YouTube, TV and Netflix – An Empirical Analysis of Competition in Audio-visual Media Markets (March 31, 2020). Available at SSRN: https://ssrn.com/abstract=3569553 or http://dx.doi.org/10.2139/ssrn.3569553

Oliver Budzinski (Contact Author)

Ilmenau University of Technology ( email )

Ilmenau, D-98684
Germany

HOME PAGE: http://www.tu-ilmenau.de/wth

Sophia Gaenssle

Ilmenau University of Technology ( email )

Ilmenau, D-98684
Germany

Nadine Lindstädt

Pforzheim University ( email )

Tiefenbronner Str. 65
75175 Pforzheim
Germany

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