Consumer Behavior Analysis: Studying the buying habits and preferences of

consumers for OTT platform subscriptions

Sharanya Mukherjee, BA LLB, 2383102

Introduction
Consumer behavior analysis refers to the study of the psyche of the consumer and the factors
that influence the consumer to buy a product.
OTT (over-the-top) platforms have been a huge addition to the entertainment sector of the
country with millions of people subscribing to such platforms like Netflix, Disney Hotstar,
Amazon Prime, etc. With massive technological advancements, human beings have always
come up with something unique to make their lives better and interesting. OTT platforms
have been one such addition to our lives. For a long time, the online video consumption was
limited to platforms like YouTube. To harness such a vast untouched market having a lot of
potential to attract consumers and generate revenue, companies like Netflix, Amazon Prime,
etc. introduced their own OTT platforms.
With a certain amount of subscription money, through OTT platforms, people can get access
to a wide range of video content- movies, web series, etc. which are not aired in the normal
television. Some movies and web series are specially shot to be aired in these platforms rather
than movie halls or television sets.

Is the demand for the subscription of OTT platforms same across the globe?
The answer is, no. Different countries have recorded different demands for such platforms. A
particular platform might be available to some countries but not the rest of the world. For
example, Netflix might be famous in country A, but people of country B might prefer
Amazon Prime.

The Indian view

In a country as vast and huge as India, people have varying opinions regarding the usage of
these platforms. There was a sharp increase in the number of people subscribing for the OTTs
in India during Covid-19 in 2020. The outbreak of the global pandemic did not allow the
airing of anything new in the television or movies, making the entertainment industry come
to a halt. Due to this, people saw OTT platforms as a means of entertainment since it has a
wide range of movies and series that we can watch anytime anywhere unlike normal
television.
Yet, a lot of people in the country are averse towards purchasing an OTT subscription and are
of the view that television plans are much cheaper than these platforms. These opinions also
vary according to the place from where the citizen belongs from. In metro cities, most of the
people have subscription to at least one OTT platform. In tier 2 cities, most of the people are
against making a purchase for the same, since, they prefer the traditional television and also
find these too tech-savvy.

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The reaction of the Indians in this case has been mixed. There has been enthusiastic
adaptation for the same as well as repulsion.

How have OTT platforms impacted our lives?

Technology has become an inescapable reality of life, it is omnipresent. It affects our life in
numerous ways every day and so are its products. OTTs are one such product of technology.
➢ Impact of OTT on the family

OTTs have a major impact on one’s family. They can help integrate the family more
or even create distance amongst the members. With an increased screen time,
members of a family might be busy in their own respective screens watching what
they want to watch leading to poor communication and decrease in quality time spent
together. On the other hand, it might increase the rate of the family spending more
time together if they decide to watch something together and also improve their
communication by discussing about what they have seen.

➢ Impact of OTT on the society

Not just in small groups, OTTs have a large-scale impact as well on the society. What
type of content and information we engross in, affects us in our daily life. There’s a
popular saying which goes as “What a man sees, he thinks. What he thinks, he talks.
What he talks, he does, and what he does, he becomes”. For example, a child may see
his favorite character doing something in a movie scene and want to imitate the same
thing. Overtime, these contents may influence societal norms and values.

➢ Impact of OTT on the individual

OTTs have an impact on the individual both in a positive and a negative way. It might
pose serious mental impacts on the individual, especially the young adults. Spending a
lot of lone screen time instead of spending time socializing might lead to the
individual feeling lonely and detached from the outside world. It might also
negatively impact the health of the person since mobiles and laptops emit harmful
radiations and using such electronics for a long time might expose the person to
dangerous diseases including cancer. On the other hand, it can also positively affect
the individual. People might learn a lot of things from what they see online, they
might gain insights about history, science, etc.

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General buying habits and preferences of consumers for OTT platforms in
India
➢ Subscription to more than 1 platform

Amongst Indian subscribers, there’s a general trend that maximum of the times, a
person is subscribed to more than one OTT platform. This hence proves that people
are very interested to spend their times in such platforms and explore the online video
content

➢ Price is the preference

Individuals are more generally inclined towards subscribing to platforms which won’t
dug a hole in their pockets. Affordable OTT platforms providing access to a lot of
content are generally preferred.

➢ Content is the key

You won’t exactly purchase a platform where the options to watch are very less.
People generally prefer platforms and subscribe to only those which value their
money and provide a lot of content- both original and others under one roof.

➢ Convenience is the choice

Imagine spending 1000s of rupees behind the subscription but not being able to see
movies and web series exactly when and where you want it. Subscribers prefer and
subscribe to only those platforms where they can watch anything anytime without any
hassles or constraints.

➢ Types of people likely to prefer OTT platforms

It is mainly seen that due to a number of economic factors like income and other
factors like availability of internet, etc., subscription to OTT platforms is generally
preferred by people with stable incomes in the urban areas.

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Factors that influence consumer choices

There are a number of factors that influence the choice of consumers while purchasing OTT
platforms:
➢ Price, Content, Convenience, Expectations:

As discussed earlier, price, content and convenience play a major role for influencing
a consumer while they are making a purchase for OTT platforms.

If the price for a subscription is too high, it is likely that the individual would avoid
that subscription because people generally look for affordable options which provide
them with a lot of features. The income of the consumer plays a role in this case. If the
income of the consumer is low, it is unlikely for them to purchase an OTT
subscription because they might find it unnecessary.

Moreover, the type of content that is available in the particular platform has a hold
over the choice of the consumer. The consumer might not choose a platform which
has a smaller number of contents over one which has several.

Moreover, if a consumer is paying to get a service like this, something that they will
notice at the very beginning is how convenient is it for them. They will see if they can
see movies anywhere anytime that they want, they will also see if they can download
the movies or not, if they are providing family sharing, subscription bundling, etc.

There are certain expectations that the consumer has from their subscription and they
would most likely go for the platform which meets those expectations.

All these factors together account for influencing the consumer towards making the
purchase.

➢ Brand reputation and advertising

The reputation of the brand tends to influence the consumer, alluring them to
purchase it. A consumer is extremely like to go ahead and make a purchase of an OTT
which is well known and well-advertised rather than one which has no market
presence. The advertising and marketing of the platforms last a long impression on
the consumer. Through these marketing methods, consumers are constantly able to
compare one platform with another and also explore a particular OTT along with its
features.

Social media advertising also acts as a major influential factor in terms of purchase.
Most of the people nowadays spend their time on the social media making it an
integral part of their lives. They are heavily influenced by the social media. If an OTT

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 advertises itself heavily in the social media, there are high chances that a consumer
would choose it.

Moreover, advertising also takes place in terms of recommendations. If a consumer

gets recommended to use a certain platform by a family member or friend, they are
most likely to choose that particular option.

Conclusion
The hype towards using OTTs is increasing everyday across the globe. Even though there is
mixed reaction towards such platforms in India, most of the urban population have access to
more than one OTT platforms. OTTs have aided the economy as well by taking the
entertainment industry to the next level.

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