Business Commons^™

Recovering Household Preferences For Digital Entertainment, Jin Li, Zhiling Guo, Robert J. Kauffman

Research Collection School Of Computing and Information Systems

Cable TV return path data made possible by current generation set-top boxes present a new opportunity to analyze household viewing behavior and recover household viewing preferences from it. This research develops a model of household viewing preference that supports quantifying a household's valuation for different categories of digital content within the constraints of the programs to which it subscribes. This study uses a data set of more than 1 million observations on households from a digital entertainment firm that offers basic and premium services. Our estimation is via a Bayesian hierarchical model that employs the Gibbs sampler. The results show …