4 reasons why OTT customers are choosing content over price

Factors such as better Internet connectivity, expanding tech-savvy audiences, growing demand for varied, local, unique content, and an expanding OTT market space are driving Indians to consume content online. OTT service providers such as Netflix, Amazon Prime Video, Disney+ Hotstar, and many others continue to soar in popularity after getting a visible boost by pandemic-induced lockdowns. In this article, Raman Abrol, GM & Chief Commercial Officer, Amdocs Media, analyses why subscription costs take a back seat when popular and accessible forms entertainment are available.

Chances are, you have either seen a few episodes of South Korean survival drama hit ‘Squid Game’ or at least heard of its stellar rise towards global fame. Its popularity reminds us that language or cultural affinities are no barrier to stardom. If it’s good, people are going to spend tons of their time binging on it. Around 71% of over-the-top (OTT) customers consider quality of content, not price, as the key reason for their loyalty to a media/ entertainment brand, according to Amdocs’ ‘The New Streaming Consumer 2021’ report. These findings cement the fact that the way content is perceived and consumed has undergone massive change over the past few years. Not least because of an exodus of content from television to OTT platforms.

Factors such as better Internet connectivity, expanding tech-savvy audiences, growing demand for varied, local, unique content, and an expanding OTT market space (with over 40 OTT services) are driving Indians to consume content online. We have seen the Indian OTT paid subscriber base grow by 30%, from 22.2 million to 29 million between March and July 2020. Further, research shows that the video OTT market is expected to grow from about $1.5 billion this year to about $12.5 billion by 2030.

OTT service providers such as Netflix, Amazon Prime Video, Disney+ Hotstar, and many others continue to soar in popularity after getting a visible boost by pandemic-induced lockdowns. And as we shall see, subscription costs take a back seat when popular and accessible forms entertainment are available.

Here are four reasons why viewers prioritize content over price:

Availability of diverse, exclusive, quality content: Unlike the content available on television, OTT audiences have the flexibility to surf and turf across a slate of diverse, high-quality content in multiple languages, categories, formats, and genres. Giving customers exclusive, original, quality content or early access to original programming before it goes live anywhere else, acts as a major draw for subscribers, who are willing to pay more for such content.

Meeting the rising demand for niche, regional/ vernacular language content: Consumers today are demanding content that is available in their native language and reflects their local culture and ideologies. Though cable TV does offer regional language channels; customers seldom have much choice in selecting a particular show. There is a growing demand for regional and local language content that is not easily available or accessible through Direct-to-Home (DTH) platforms or any other conventional mediums of entertainment. This has given rise to a number of regional OTT players that are serving niche local customers. Interestingly, the reverse is also true. Geographical boundaries have blurred with the OTT platforms bringing content from all over the world to Indian subscribers. This results in wider exposure of audiences to traditions, cultures, socio-economic-political aspects of different countries/ regions. Such diverse content is available and consumable in one package, unlike in satellite or cable television.

Access to personalised content package: Customers are increasingly looking for a ‘perfect’ bundle of subscriptions and are likely to pay more if they can access their choice of content – be it on-demand binge-worthy TV series, live sports, e-learning or health and fitness sessions, all under one subscription. In fact, according to Amdocs research, 56% of the OTT customers surveyed are willing to pay more for on-demand, binge-worthy TV series. With younger, digitally-native customers showing appreciation for convenient, quick and easy accessibility, they are more likely to pay for additional content to their subscription bundle. This allows them to personalise and customise their “perfect package” based on their current and ever-changing viewing needs.

OTT content anywhere, anytime, and of personalised choice: OTT offers the choice of accessing content of one’s choice, anytime and anywhere. It offers convenience of viewing on one’s preferred choice of device – be it a laptop, a smartphone, or a smart TV. This convenience that OTT provides supersedes the cost that comes attached with it. DTH services can only be availed on televisions, making them less preferable to OTT, especially for tech-savvy millennials and Gen-Z customers.

To conclude...

The rapidly evolving and maturing tastes of the viewers are driving them to seek quality content, even if it comes at a slight premium. The pandemic has turned the tide firmly towards ‘on-demand’ and Indian viewers have taken to it like fish to water.