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. Our results suggest that binge-watchers deplete the content of interest to them very quickly, which reduces their short-term willingness to pay for SVoD. We also show that recommendation reminders aimed at widening the content preferences of households off set the negative e ffect of binge-watching, and lessen the concerns of binge-watchers with lack of content refresh. We discuss that these recommendation reminders may help content providers manage supply costs, which may otherwise become prohibitive with frequent updates to SVoD catalogs.
Key words : Binge-Watching, Subscription-based Video-on-Demand, Recommendation Reminders, Randomized Experiment
