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ARTICLE · 24 FEBRUARY 2006

Pay-Per-View Entertainment Revenue Management Research

Ascertainment
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This paper develops a proposal to test market pay-per-view events, generating data to be used to estimate how customer and attraction attributes affect customer willingness to pay. After developing a theoretical foundation for this pricing analysis, we apply it to a test case where an event was sold by REQUEST TV at two prices in two markets.

United StatesStrategy

An Analysis of Pricing: Cable Pay-Per-View Broadcast Events

Article by LOUIS J. VOLPANO, with DAVID W. SAVITSKI, Ph.D.

Originally published December 2005

Lou Volpano heads

ascertain-ment®, a consulting firm providing research and strategic analysis for entertainment companies based in Newport Beach, California. Previous clients include: Great Chefs Television and Publishing, Dick Clark Productions, and the House of Blues.

This paper develops a proposal to test market pay-per-view events, generating data to be used to estimate how customer and attraction attributes affect customer willingness to pay. After developing a theoretical foundation for this pricing analysis, we apply it to a test case where an event was sold by REQUEST TV at two prices in two markets. We propose generalizing this matched-cell experiment to allow for variations in customer and attraction attributes enabling us to quantify the link(s) between attributes and price. Analysis of these estimated links will

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