The emergence of streaming and its impact on pricing and product strategies of content providers

This is the authors' abstract. We don't add key points for this paper.

We investigate how an established content provider with a digital store responds to emerging streaming technology. Under certain circumstances, the provider may need to lower the sale price of his downloads to encourage consumers to learn their preferences through streaming. When competing against a rival streaming service, if the provider can sufficiently differentiate his service, the provider should operate in the streaming market and charge a higher subscription fee for his services. We also consider an environment in which the provider abandons the sale of content and competes in streaming and find that the pricing strategies change.