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