Dominik Winter is an extra-occupational Digital Business Management master student at University of Applied Sciences in Cologne, Germany. Dominik had been working as a journalist, editor in chief, online publicist, and social media/community manager in the music industry for 15 years before he decided to study Online Editing/Journalism in 2014. In 2017, Dominik obtained a Bachelor of Arts degree in Online Editing/Journalism at University of Applied Sciences in Cologne, Germany. His bachelor’s thesis focused on success factors of linear (online) television in times of digitization. Building up on that, Dominik’s master’s thesis focuses on success factors of Subscription Video on Demand services such as Netflix, Amazon Prime Video, and Disney+.
The way of receiving moving images is changing. Where once linear television used to predominate, the consumption of nonlinear online video streaming content nowadays continues to increase worldwide. Online video streaming content is especially popular among young audiences. For the first time in 2019, 14-to-29-year-old Germans consumed more online video content than linear television. Subscription video-on-demand services play a role in this shift. Subscription video-on-demand (SvoD) means paid subscriptions which allow consumers to access an online video library on demand that contains, for example, feature films and TV series.
The examination of the German SVoD market shows a counterintuitive development: While Netflix and Amazon Prime Video, which both entered the German market in 2014, were at least rarely used by 25 percent of the German population over the age of 14 in 2018, Sky Go/Sky Ticket (8 percent) and Maxdome (4 percent) followed with a wide gap, even though these providers had already entered the German SVoD market in 2006 and 2011 respectively. Given the dominance of Netflix and Amazon Prime Video, the SVoD market’s power structures appear to be defined. Yet, new entrants such as Apple and Disney continue to stream into the market.
The counterintuitive development and continuous expansion of the market lead to the following research question: What success factors exist in the SVoD market, and how can they be made measurable? According to the research question, the goal of this master’s thesis is to determine and empirically validate success factors in the SVoD market.
To answer the research question, the counter-intuitive development of the SVoD market has been compared to the success factors prevalent in modern markets: product benefits, brand, lock-in effects, network effects, and price. Subsequently, the transferability of these success factors to the SVoD market has been determined. Using Sawtooth Software’s Choice-based Conjoint Analysis tool, Discover, a total of 36 SVoD subscription models were submitted online to 147 German test persons, ages 14 and up, for a holistic assessment. Subsequently, partial benefit values of individual properties and characteristic values were determined from the overall judgements.
The evaluations of the participants show the following importance percentages for the partial benefit values of the aforementioned success factors: price (37.3 %), brand (32 %), contractual lock-in effects (12 %), product benefits (10.6 %), lock-in effects through brand-specific training/information and databases (5.1 %), network effects (3 %). These results confirm the hypotheses and answer the research question: Product benefits, brand, lock-in effects, network effects, and price are factors of success in the SVoD market. Their importance levels can be measured using Sawtooth Software’s Choice-based Conjoint Analysis tool, Discover.
If you are interested in this research or would like to learn more about Dominik, please feel free to contact him via LinkedIn: https://www.linkedin.com/in/dominik-winter/