![]() But when streaming is available it cannibalizes some of those customers. If streaming is not available a large portion of them would buy the DVD. ![]() Amazon sells DVD's and offers customers the chance to stream the movie on the same page they offer to sell the DVD. Why does Amazon's instant movie service decrease demand for DVD's while Netflix's service does not? This can be attributed to the types of customers using both sites. A difference of 3 percentage points, but is within the margin of error. The average price for DVD's available on Netflix dropped 51% compared to a drop of 48% for those not available instantly. A difference of 11 percentage points, which is statistically significant (see methodology below). The average price for a DVD in our study dropped 58% if it was available on Amazon Instant, but only 47% if it was not available for streaming through Amazon.
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