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In this paper, we attempt to estimate the effect of the implementation ofsubscription-based streaming services on the demand of the associated gameconsoles. We do this by applying the BLP demand estimation model proposed byBerry (1994). This results in a linear demand specification which can beidentified using conventional identification methods such as instrumentalvariables estimation and fixed-effects models. We find that given our dataset,the two-stage least squares (2SLS) regression provides us with convincingestimates that subscription-based streaming services does have a positiveeffect on the demand of game consoles as proposed by the general principle ofcomplementary goods.

Estimating The Effect Of Subscription based Streaming Services On The Demand For Game Consoles