We analyze the outcomes of two randomized field experiments to study the effect of binge-watching on the subscription of Video-on-Demand (SVoD). In both cases, we off ered access to SVoD to a random set of households for several weeks and used another random set of households as a control group. In both cases, we and that the households that binge watch TV shows are less likely to pay for SVoD after these free trials.
Recommender systems assign products to slots in ways that improve consumers’
experience when choosing what to buy. They usually lead to more sales, which increases
both consumer surplus and profit. However, firms may also choose which recommender
system to use to maximize profit.
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