Abstract
In order to establish a reasonable competitive policy after the rapid growth of OTT services, discussions on the competition situation and substitution between OTT services and Pay TV are active. This study aims to give implications for the future evaluation and policy of competition in the media market by looking at the factors affecting the expenditure of TV VOD services which have been decreasing in market size in recent years. Considering the characteristics of the data, this study analyzes two distinct effects on TV VOD expenditure, which are whether to spend on TV VOD and how much you spend on TV VOD, and data from 2021 to 2022 of the Korean Media Panel Survey were employed. First, the results of estimating the impact on whether to spend on TV VOD suggest that it was confirmed that subscribers who spend on OTT services are more likely to spend on TV VOD than non-OTT subscribers. In addition, IPTV households were more likely to spend on TV VODs than non-subscribers and CATV subscribers. As a result of estimating the factors affecting the amount of TV VOD expenditure, it was found that the longer OTT usage time, the higher TV VOD expenditure, confirming that a complementary relationship rather than a substitution between the two media services is still maintained.
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