Characteristics determining customer’s preferences for OTT video streaming: A multivariate analysis

Abstract

The video streaming over-the-top (OTT) services, provided by both domestic and international companies such as Amazon Prime and Netflix, have created a significant impact on how consumers behave when it involves entertainment subscriptions. The challenge OTT service providers face in determining the specific features that influence customers’ subscription decisions. To overcome this challenge, identify and analyze the characteristics that determine customer preferences for OTT video streaming through a multivariate analysis approach. We gather the samples from 154 respondents using snowball sampling and 300 respondents via Amazon to evaluate customer preferences. Based on their selection of subscription, respondents were divided into 3 categories: both services are cable and OTT. The evaluation of customer preferences included ten reasons for subscribing and seven reasons not to subscribe. Information, accessibility, features, affordability, and quality were the five main criteria that were determined by exploratory factor analysis (EFA). The demographic data including age, educational attainment, salary, and job status were considered, and logistic regression analysis was utilized to investigate the influence of these parameters on customers’ subscription decisions. The results highlight the significance of comprehending the interaction among elements like pricing, quality, and demographics in influencing subscription decisions. Service providers in this highly competitive market can utilize this information to improve and customize their offers, which increases customer satisfaction and subscriber retention rates.