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Economists Talk Art: Studios vs. Streaming: which ‘logic’ will prevail in Hollywood?


A study co-authored by Allègre Hadida, Associate Professor in Strategy at Cambridge Judge Business School, is featured in the article. The study says that the traditional movie studio business model is based on “commitment logic” that bets on customers choosing to view a theatrical release on the big screen, while the new streaming models of Netflix and Amazon Prime instead rely on “convenience logic” in driving subscriptions by offering customers a big variety of films “ATAWAD” – “AnyTime, AnyWhere, and on Any Device”.

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