Work detail

Willingness to pay for streaming services: Evidence from the Czech Republic

Author: Bc. Ivana Strnadová
Year: 2019 - summer
Leaders: Mgr. Petr Polák MSc.
Consultants:
Work type: Bachelors
Language: English
Pages: 84
Awards and prizes:
Link: https://is.cuni.cz/webapps/zzp/detail/212680/
Abstract: The aim of this thesis is to analyze the consumers’ willingness to pay for subscriptionbased video streaming services in the Czech Republic. With the unique data collected
via self-developed questionnaire both the willingness to pay and the maximum price
that consumers would be willing to pay for such services is examined. Using the logistic
regression, variables that have a significant effect on the probability of subscribing were
identified. These include the age, education level, preference for original sound and
Czech movie production, online payments, purchase of an electronic movie, number of
devices used, cinema visits, favouritism of movies over TV shows, satisfaction with the
content offered by common broadcasting stations and desire for spatial mobility when
accessing video content. Similar results were obtained when predicting the price using
OLS. Additionally a previous purchase of a physical medium and the income level were
found significant. Based on demand estimation this thesis also suggests that from the
provider’s perspective the optimal profit maximization price for streaming services
should be set in the range from 218 to 283 CZK.

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