7153-Article Text-13270-1-10-20200227 PDF

ISSN: 0474-9030
Our Heritage Vol-68-Issue-65

(UGC Care Journal) January-2020
A study on online subscription of the Over-The-Top (OTT)

streaming media in Pune city
Author
Dr. Rajendra Bhadale
Associate Professor,
Sinhgad Institute of Business Administration and Computer Application,
Lonavala Pune- 410401
Email-rajendrabhadale@gmail.com
Co-Author
Dr. Atul A.Pise
Assistant Professor,
Sinhgad Business School Pune City-411041
Email-atul.pise@gmail.com
Abstract
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1. Introduction
In the past, television has changed the landscapes for media. In recent years, be it
movies, music, news, informative documentaries or even commercials, Television
changed the world forever. The television has given birth to visual marketing.Media
consumption in the India more specifically in urban market and rural market in
particular has shown tremendous increase and has seen a significant jump from
traditional media to new (digital) media.The landscape of media consumption changed
completely with the entry of Netflix in the market for Over-The-Top (OTT) media, or
popularly known as Internet Streaming. Soon enough, a lot of new players joined in like
Netflix, Amazon prime, Hotstar ,ALT Balaji, Zee5, Voot, SONYLIV, Viu , Hoichoi,
Apple TV (yet to be launched). In recent years, online streaming apps and websites are
taking over the television industry by storm. More and more people prefer these
services over television because it has better content, exclusive shows, and movies and
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faster premiers. So, with so many streaming services in the country, it comes down to
selecting the best ones.
The digital streaming industry in India is in its nascent stages and as the digital
ecosystem evolves in India, with greater number of smartphone and internet
penetration, the OTT streaming media is expected to witness sharp growth over the
next 5 years. India’s video streaming industry will record a growth at a CAGR of
21.82% to reach Rs. 11,977 crores by 2023. According to Pricewaterhousecooper –
global accounting firm report indicated that he over-the-top (OTT) video industry will
record the highest growth rate among all segments and drive evolution over the next
four years in the overall media and entertainment industry in the country that will rise
by 11.28% to reach Rs. 4,51,405 crore. The report entitled Global Entertainment &
Media Outlook 2019-2023 (Outlook) outlines rates of growth for different media and
entertainment segments and sub-segments both globally, as well as territory-wise.
Companies are devising strategies to present different options: the consumer can select
the offerings with unlimited usage in some areas, tiers of payments for different
services in less developed markets, and competing on affordability. Content creators
and distributors of OTT media are devising new approaches to appeal to consumers as
individuals and marketers are figuring out how to meet consumers at the point of
consumption and drive them instantaneously towards making purchase. OTT media
companies are taking advantage of artificial intelligence to understand people’s
individual tastes and consumption habits .Their personal data- right from music, video
they stream on OTT –is now taking a central role in designing the offerings.
According to Deloitte report, internet user base in India is growing at a rapid rate, most
of these users (75%) belong to the age group of less than 35 years. More than half of
the app users in India are aged between 18 and 24 years and a further 29% between 25
and 35. 45% of these users reside in the top 4 metros. On an average, an internet
connected user in India spends 14% of his or her time and 17% of his or her monthly
spending on entertainment. With the introduction of 5G services, there is increase in
adaption of entertainment application especially like on demand music, video streaming
and downloads by 2020.
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2. Literature Review:
Dr. Sabyasachi Dasgupta and Dr. Priya Grover (2019) concluded that the factor
that influence the adaption of OTT subscription are convenience, mobility,
content and cost. The study claimed that kind of ease with which they are able to
use and adapt to these platforms are much higher as compared to the amount of
clutter they end up dealing with on the loads of channels on television. The most
importantly, mobility is the reason for adaption of OTT platform to watch the
content anytime and anywhere. Content occupies the central position in terms of
interest generation among the audience. As compared to television where
customer used to pay fixed amount of fee for all the channel, OTT platform
offers customized content based on preferences at affordable cost. With number
of OTT player presence in market, Customers are definitely getting affordable
package of OTT subscriptions.
The Nielsen Company study indicates that households used only 14% of the
channels made available to them through cable, a leading reason for consumers
switching to streaming services as the channel availability can be more fine -
tuned to consumer preferences (Nielsen, 2009)
3. Objective of the study:
1. To study the demographic profile of people for OTT media subscription

2. To understand the factors influencing the subscription of OTT media
3. To study the preferences of OTT media subscription among the customers.
4. Hypothesis of the study:
H1: There is significant relationship between demographic factors and

subscription of OTT media.
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H2: The factor cost, quality contents, offers, social trends significantly
influencing the OTT subscriptions by customers.
5. Research Methodology:
The researcher has adopted descriptive research design for the present research
purpose. The data for the said study was collected by primary data collection method.
The structured questionnaire was administered to students, servicemen, businessmen
the age ranging from 15 years from Pune city. The convenience sampling methods
was used. The sample size formula ‘By Proportion’ (n=z2*p*q/e2), when population
is infinite and at 95% confidence level and 50% precision; was used to arrive at
sample size of 385. However, to get more detailed and qualitative output the
researcher has distributed 450 questionnaires i.e. in total 394 respondents subscribing
OTT media were considered for the study. The secondary data was reviewed by
referring to referred journals and reports on e-commerce in India.
Analytical tools:
Descriptive statistics is first employed and then inferential statistics including Chi-
Square and ANOVA are applied to test the hypotheses. The Statistical Package for the
Social Sciences Program (SPSS) version 25.0
6. Results and Discussion:

Descriptive Statistics:
Demographic Profile of OTT subscribers

Sr. No. Demographic Factors
1. Gender Male 239 60.66
Female 155 39.34
2. Age 15-24 yrs 84 21.31
25-34 yrs 196 49.75
35-44 yrs 102 25.88
45-54 yrs 9 2.28
>55 yrs 3 0.76
3 Profession
Businessmen 96 24.37
Servicemen 186 47.21
Housewife 47 11.93
Student 65 16.50
4. Annual Income
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<2.5 lakhs INR 52 13.20

2.5-5 lakhs INR 95 24.11
5-10 lakhs INR 162 41.12
>10 lakhs INR 85 21.57
Total 394 100
It is evident in the above table that the respondent in the age group of 25-34 yrs and
35-44 yrs together constitute 75.63 % of total OTT subscriptions. As per the study,
servicemen subscribe more OTT media platform followed by businessmen and
students. It is also found that the customers in income group of 5-10 lakhs INR
subscribe more than other income group.
86 % of the respondents have taken the subscription of OTT media platform. Amazon
Prime is the preferred OTT media platform among the customers followed by Hotstar,
Netflix, Voot, and Zee5. Friends were the influencers while choosing the OTT
platform followed by family members. The OTT media platform was chosen for
watching the movies the most followed by web series, documentaries, TV shows and
sports. Netflix was rated excellent in viewing experience followed by Amazon Prime,
Zee5, Hotstar and Voot.
Inferential Statistics:
Table No. 1.1 Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
OTT Subscription *
Gender/Age/Occupation/ 394 100.0% 0 0.0% 394 100.0%
Income
Table No. 1.2 Chi-Square Tests

Asymptotic Significance
Value df (2-sided)
Pearson Chi-Square : OTT Subscription * Gender 7.123a 12 .849
Likelihood Ratio 8.194 12 .770
N of Valid Cases 394
Pearson Chi-Square : OTT Subscription * Age 521.792b 12 .000
Pearson Chi-Square : OTT Subscription * Occupation 59.636 C 36 .008
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Pearson Chi-Square : OTT Subscription * Income 264.876d 36 .000
a.13 cells (50.0%) have expected count less than 5. The minimum expected count is .31.
b. 8 cells (40.0%) have expected count less than 5. The minimum expected count is .40.
c. 33 cells (63.5%) have expected count less than 5. The minimum expected count is .12.
d. 32 cells (61.5%) have expected count less than 5. The minimum expected count is .13
The regression model for OTT subscription as dependent variable, Independent

variable- cost, quality content, offers and social commerce as influencing factors are
shown in the below table. The attractive offers from OTT media platform cost of
package, social trends websites shows significant relationship with the OTT
subscriptions by the customers. The overall model is statistically significant
(P*<0.005).
Table No. 1.3 Regression Model for OTT subscription
R Square=0.06, F(4,389)=0.557
Model B Std. Error Beta t Sig.
1 (Constant) 3.112 .371 8.399 .000*
Cost .021 .052 .020 .399 .690
Quality Content -.006 .052 -.006 -.113 .910
Offers .076 .055 .070 1.369 .172
Social trends .012 .051 .012 .236 .814
a. Dependent Variable: OTT Subscription
Table No. 1.4. Hypothesis Test Summary
Sr. Variable Test Sig. Decision

No.
1 OTT Subscription- Gender Chi-square test 0.849 Insignificant

2 OTT Subscription - Age Chi-square test 0.000 Significant
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3 OTT Subscription - Occupation Chi-square test 0.008 Significant

4 OTT Subscription -Income Chi-square test 0.000 Significant
5 OTT Subscription- Cost, Quality ANOVA 0.000 Significant
Content, Offers, Social trends
7. Conclusion
The future of entertainment - productized practice of streaming content directly to the

consumer is unfolding. There is substantial competition to the TV network. The
consumers are nowadays interested in viewing the content of their interest. The OTT
providers like Netflix and Amazon Prime have begun producing original content that
is exclusively available through their service. It is found in the study that Amazon
Prime is the preferred OTT service provider in pune city followed by Amazon Prime
is the preferred OTT media platform among the customers followed by Hotstar,
Netflix, Voot, and Zee5. Demographic characteristics like gender have no significant
relationship with the OTT subscription whereas there is enough evidence to support
the relationship of age, Income and occupation of the respondent with the subscription
of OTT media. The attractive subscription offers plays vital role in influencing the
respondents while purchasing the subscription of OTT media followed by cost and
social trends.
References:
 Nielsen (2009, July 17). Television audience 2008 The Nielsen Company. 2017, from
http://blog.nielsen.com/nielsenwire/wp-content/./tva_2008_071709.pdf
 Lee, C. & Ruane, Sinead & Lim, Hyoun. (2018). Factors Affecting Online Streaming
Subscriptions. 16. Article 1.
 Dr. Sabyasachi Dasgupta and Dr. Priya Grover (2019),Understanding Adoption Factors
Of Over-The-Top Video Services Among Millennial Consumers, International Journal of
Computer Engineering & Technology (IJCET) Volume 10, Issue 1, January-February
2019, pp. 61-71,
 https://www.livemint.com/industry/media/india-s-video-streaming-industry-to-grow-at-
22-pwc-report-1559806416120.html
 https://www2.deloitte.com/content/dam/Deloitte/in/Documents/technology-media-
telecommunications/in-tmt-rise-of-on-demand-content.pdf
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 https://www.researchgate.net/publication/332720148_Factors_Affecting_Online_Streami
ng_Subscriptions
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Our Heritage Vol-68-Issue-65

A study on online subscription of the Over-The-Top (OTT)

3. Objective of the study:

1. To study the demographic profile of people for OTT media subscription

4. Hypothesis of the study:

H1: There is significant relationship between demographic factors and

6. Results and Discussion:

Demographic Profile of OTT subscribers

<2.5 lakhs INR 52 13.20

Table No. 1.1 Case Processing Summary

Table No. 1.2 Chi-Square Tests

Likelihood Ratio 57.969 36 .012

The regression model for OTT subscription as dependent variable, Independent

Table No. 1.3 Regression Model for OTT subscription

Table No. 1.4. Hypothesis Test Summary

Sr. Variable Test Sig. Decision

1 OTT Subscription- Gender Chi-square test 0.849 Insignificant

3 OTT Subscription - Occupation Chi-square test 0.008 Significant

The future of entertainment - productized practice of streaming content directly to the

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