Substitution or Promotion? The Impact of Price Discounts on Cross-Channel Sales of Digital Movies

- We analyze the impact of price discounts on own- and cross-channel sales.
- Our paper reports the results of a unique pricing experiment in an online marketplace.
- Digital movie consumers are highly sensitive to price promotions.
- Price promotions for digital movie sales do not seem to cannibalize digital rentals.
- There seem to be a positive spillover across channels from price promotions.