Abstract
This article tries to link economic properties of video products to strategies that can be used by Internet-based video distributors. First, this study suggests 4 economic properties of video products: video as an experience good, returns to scale, video as a public good, and interdependency of willingness to pay. Second, based on economic attributes, this study synthesizes several strategies. Finally, this article uses a case study to compare theoretical strategies to actual strategies used by 2 Internet-based movie distributors. As a result of this study, we found that there are several possible strategies that are not yet being used in practice. It is expected that as the market becomes more mature through the development of technologies (e.g., digital rights management), more strategies will be adopted by online video distributors.
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