Prof. Michaela Dragansaka, Ph.D. (Drexel University):
"Content variety and profitability in online adult entertainment"
Thursday, December 11, 10:00am – 12:00pm (WiSo Building, Room 410)
Online adult entertainment, although no longer the number one destination on the Internet, still generates about 10BN annual revenues in the US alone. Because of the wide availability of free content (due to pervasive piracy and ease of uploading amateur videos), the industry is at crossroads. High-quality content is costly to produce, so the question is how to offer the variety and quality paying customers demand, without compromising profits. A unique 7-year panel data set on customer transactions on an online adult entertainment site, involving both subscriptions and on-demand purchases, allows us to shed some light on the question whether content proliferation pays off and what the best pricing strategies might be to increase revenues.