Forecasting VOD Demand Curves: A Functional Spatial-Temporal Approach

• Activity Number: 312
• Type: Contributed
• Date/Time: Tuesday, August 6, 2013 : 8:30 AM to 10:20 AM
• Sponsor: Section on Statistics in Marketing
• Author(s): Yue Tian*+
• Companies: University of Maryland
• Keywords: Video-on-Demand(VOD) ; functional ; spatial model ; marketing ; movies

Abstract

Cable providers offer streaming Video-on-Demand (VOD) services to their subscribers. Usually, video content in their library is stored at several servers located at each city office. However,with rapid increase of high-quality media content,such as three-dimensional films, it's becoming economically infeasible and wasteful to replicate the entire library at each systems. In this paper, we present an approach for optimally content placement based on dynamical forecast of VOD demand curves. To capture the dynamic trend and geographical difference of demand curves, we develop a functional spatial-temporal model, which accurately estimates each demand curve at every server location. Based on the forecast of demand, estimated profit curves are proposed which help managers optimize limited storage space and maximize potential profit.