Binge Watching and Advertising

Abstract

How users consume media has shifted dramatically as viewers migrate from traditional broadcast channels toward online channels. Rather than following the schedule dictated by television networks and consuming one episode of a series each week, many viewers now engage in binge watching, which involves consuming several episodes of the same series in a condensed period of time. In this research, the authors decompose users’ viewing behavior into (1) whether the user continues the viewing session after each episode viewed, (2) whether the next episode viewed is from the same or a different series, and (3) the time elapsed between sessions. Applying this modeling framework to data provided by Hulu.com , a popular online provider of broadcast and cable television shows, the authors examine the drivers of binge watching behavior, distinguishing between user-level traits and states determined by previously viewed content. The authors simultaneously investigate users’ response to advertisements. Many online video providers support their services with advertising revenue; thus, understanding how users respond to advertisements and how advertising affects subsequent viewing is of paramount importance to both advertisers and online video providers. The results of the study reveal that advertising responsiveness differs between bingers and nonbingers and that it changes over the course of online viewing sessions. The authors discuss the implications of their results for advertisers and online video platforms.