The exponential growth of technology has fundamentally transformed the global media landscape, leading to the rise of Over-the-Top (OTT) platforms as dominant sources of entertainment and information. This study explores the factors influencing the shift of Indian consumers from traditional media to OTT platforms, examining behavioural patterns, content preferences, and the impact of technological advancements. Utilizing a robust quantitative methodology with a sample of 240 respondents across diverse Indian cities, this research employs exploratory factor analysis to identify the key determinants of OTT adoption. The findings reveal that content quality, innovativeness, ease of use, and satisfaction are the most significant factors driving this transition. The paper discusses the implications for stakeholders in the media industry and suggests avenues for future research in the evolving digital entertainment ecosystem of India
1.1 Background
The rapid evolution of technology has given birth to various modes of communication, such as radio, television, and, most notably, the Internet (Saini, 2020). The Internet, in particular, has revolutionized the way people communicate, socialize, and consume information and entertainment (Porral et al., 2019). In recent years, the proliferation of high-speed internet, affordable smartphones, and digital devices has led to a paradigm shift in media consumption patterns, especially in emerging economies like India.
The emergence of Over-the-Top (OTT) platforms—services that deliver content directly to viewers via the Internet—has disrupted traditional media channels such as cable television and cinema. The Indian OTT market, currently the fastest-growing in the world, is projected to become the second largest after the United States, with over 40 service providers including Netflix, Amazon Prime Video, Disney+ Hotstar, and others (Gupta & Singhara, 2021).
1.2 Rationale
The COVID-19 pandemic accelerated the adoption of OTT platforms as lockdowns and social distancing measures restricted access to cinemas and other traditional entertainment venues (Jhala & Patadiya, 2021). This unprecedented situation compelled consumers across all age groups to explore digital alternatives for entertainment, information, and social interaction.
1.3 Research Problem
Despite the growing popularity of OTT platforms, there is a need to systematically analyze the factors influencing the shift from traditional media to OTT services among Indian consumers. Understanding these factors is crucial for content creators, platform developers, and policymakers to strategize and cater to the evolving needs of digital audiences.
LITERATURE REVIEW
2.1 The Rise of OTT Platforms
Several studies have documented the rapid rise of OTT platforms in India, attributing it to increased internet penetration, affordable data plans, and the proliferation of smart devices (Sundravel & Elangovan, 2020; Singh, 2019). The launch of cost-effective data packages by telecom providers like Reliance Jio has democratized access to digital content, making OTT services accessible to a broader demographic.
2.2 Factors Influencing OTT Adoption
Chatterjee et al. (2020) investigated the media consumption habits of Indian millennials and found that mobile devices are preferred over traditional movie screens due to convenience and personalized content. Jose (2020) identified user-friendliness and content richness as primary influencing factors, while Nagaraj et al. (2021) highlighted content, convenience, features, pricing, and quality as key determinants.
2.3 Impact of COVID-19
The COVID-19 pandemic served as a catalyst for the growth of OTT platforms, with consumers seeking cross-cultural and educational content during lockdowns (Saini, 2020). Rahman (2021) noted a significant increase in binge-watching behavior, particularly on smartphones and tablets.
2.4 Consumer Behavior and Preferences
Studies have shown that the availability of original, diverse, and high-quality content, along with technological innovations, motivates consumers to switch to OTT platforms (Gupta, 2019; Baslas et al., 2020). Bhavsar (2018) observed that digital platforms have significantly impacted consumer preferences, attitudes, and behavioral patterns.
2.5 Challenges and Opportunities
While OTT platforms offer numerous benefits, they also face challenges such as intense competition, content regulation, and the need to cater to diverse linguistic and cultural preferences (Gomathi & Christy, 2021). Nevertheless, the future of OTT in India appears promising due to ongoing improvements in internet infrastructure and device accessibility.
The main objectives of this study are:
RESEARCH METHODOLOGY
4.1 Research Design
This study adopts a quantitative research design, utilizing a structured online survey to collect data from a diverse sample of Indian consumers. The survey instrument was developed based on parameters identified in the literature review and included closed-ended questions measured on a 5-point Likert scale (Strongly Agree to Strongly Disagree).
4.2 Sampling
A total of 240 respondents from various Indian cities and age groups participated in the survey. The sample was selected using a combination of purposive and convenience sampling to ensure representation across different demographics.
4.3 Data Collection
Data were collected via Google Forms over a period of two months. The questionnaire focused on respondents' media consumption habits, preferences, and perceptions regarding OTT platforms and traditional media.
4.4 Data Analysis
Exploratory factor analysis (EFA) was conducted using SPSS to identify the underlying factors influencing OTT adoption. The suitability of the data for factor analysis was assessed using the Kaiser-Meyer-Olkin (KMO) measure and Bartlett's Test of Sphericity.
Result Analysis: -
In order to examine the appropriateness of factor analysis, we have applied Bartlett's test of sphericity to measure that the factors are highly correlated. Identify matrix can be ruled out if the p - value of the test is less than 0.005 and Kaiser‐Meyer‐Olkin (KMO) to test whether the sample is adequate. The KMO measures the sampling adequacy, which should be greater than 0.5 for a satisfactory factor analysis and greater than 0.8 is considered excellent. Table 1 depicts the results of KMO and Bartlett's Test.
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Kaiser-Meyer-Olkin Measure of Sampling Adequacy. |
.893 |
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|
Bartlett's Test of Sphericity |
Approx. Chi-Square |
1.004E4 |
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Df |
861 |
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Sig. |
.000 |
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Table 1.KMO and Bartlett’s Test
As we can see from table 1, the KMO measure is 0.893 which is considered excellent result as it exceeds 0.5 and Bartlett's Test of Sphericity shows 0.000 which is less than 0.005,the outcomes reveals that that there is no high correlation among the variables and the sample is adequate and fit for factor analysis.
Table 2. Total Variance Explained
|
Component |
Initial Eigenvalues |
Extraction Sums of Squared Loadings |
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|
Total |
% of Variance |
Cumulative % |
Total |
% of Variance |
Cumulative % |
|
|
1 |
14.804 |
35.249 |
35.249 |
14.804 |
35.249 |
35.249 |
|
2 |
5.980 |
14.239 |
49.488 |
5.980 |
14.239 |
49.488 |
|
3 |
2.885 |
6.868 |
56.356 |
2.885 |
6.868 |
56.356 |
|
4 |
1.985 |
4.726 |
61.082 |
1.985 |
4.726 |
61.082 |
|
5 |
1.653 |
3.936 |
65.017 |
1.653 |
3.936 |
65.017 |
|
6 |
1.304 |
3.106 |
68.123 |
1.304 |
3.106 |
68.123 |
|
7 |
1.182 |
2.815 |
70.938 |
1.182 |
2.815 |
70.938 |
|
8 |
1.139 |
2.712 |
73.649 |
1.139 |
2.712 |
73.649 |
|
9 |
1.034 |
2.461 |
76.111 |
1.034 |
2.461 |
76.111 |
|
10 |
.882 |
2.101 |
78.211 |
|
|
|
|
11 |
.803 |
1.912 |
80.123 |
|
|
|
|
12 |
.762 |
1.814 |
81.937 |
|
|
|
|
13 |
.697 |
1.659 |
83.596 |
|
|
|
|
14 |
.632 |
1.505 |
85.101 |
|
|
|
|
15 |
.585 |
1.393 |
86.494 |
|
|
|
|
16 |
.575 |
1.369 |
87.862 |
|
|
|
|
17 |
.468 |
1.114 |
88.976 |
|
|
|
|
18 |
.437 |
1.041 |
90.017 |
|
|
|
|
19 |
.417 |
.992 |
91.009 |
|
|
|
|
20 |
.381 |
.908 |
91.918 |
|
|
|
|
21 |
.362 |
.862 |
92.779 |
|
|
|
|
22 |
.309 |
.735 |
93.514 |
|
|
|
|
23 |
.299 |
.712 |
94.226 |
|
|
|
|
24 |
.264 |
.629 |
94.855 |
|
|
|
|
25 |
.236 |
.562 |
95.416 |
|
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|
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26 |
.225 |
.535 |
95.951 |
|
|
|
|
27 |
.207 |
.492 |
96.443 |
|
|
|
|
28 |
.195 |
.464 |
96.907 |
|
|
|
|
29 |
.184 |
.438 |
97.345 |
|
|
|
|
30 |
.166 |
.394 |
97.740 |
|
|
|
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31 |
.150 |
.358 |
98.098 |
|
|
|
|
32 |
.140 |
.333 |
98.431 |
|
|
|
|
33 |
.132 |
.315 |
98.746 |
|
|
|
|
34 |
.088 |
.209 |
98.955 |
|
|
|
|
35 |
.085 |
.203 |
99.158 |
|
|
|
|
36 |
.074 |
.177 |
99.335 |
|
|
|
|
37 |
.067 |
.159 |
99.494 |
|
|
|
|
38 |
.060 |
.142 |
99.637 |
|
|
|
|
39 |
.051 |
.122 |
99.758 |
|
|
|
|
40 |
.049 |
.118 |
99.876 |
|
|
|
|
41 |
.031 |
.074 |
99.950 |
|
|
|
|
42 |
.021 |
.050 |
100.000 |
|
|
|
Extraction Method: Principle Component Analysis
Table 2. depicts the percentage of the total variance among the variable that can be explained by the single factor. If the variables are independent of each other,than the total variable will be equal to the number of variables in the analysis. Eigen value is used to decide the number of factors to be considered in the study.Factor analysis generated factors with Eigen value of equal to 1 or more than 1.0 arrived at after varimax rotation were considered.
Nine components explain 76.111 % of the variable, where the first factor determines the 35.249 percent of the variance.The second factor provides a 14.239 percent of total variance.The third factor provides a percent of 6.868 percent of total variance.The fourth factor provides a 4.726 percent of total variance.The fifth factor provides a 3.936 percent of total variance.The sixth factor provides a 3.106 percent of total variance,seventh and eighthfactor determines accordingly 2.815 and 2.712 and finally the ninth factor determines the 2.461 percent of the total variance.After ninth it starts dropping.
|
S.No |
Factors |
Variables |
Factor Loading |
Percentage of Variance Explained |
|
1. |
Content related factors |
C1. OTT platform provide original content. C2. OTT offered wide variety of content 24 X 7 C3.OTT platform provide international content with subtitles. C4.OTT platform offers content in regional languages. C5.OTT platform provide user friendly content. C6.OTT offers good audio and video quality content. C7.OTT platforms help people to search their favorite content faster. C8. Description of the content helps to save time in exploring the content. C9.OTT platforms are very quick to provide new exclusive content. C10.Uncensored content discourages consumers from using OTT platforms freely. |
.910 .574
.940
.649
.577
.774
.523
.393
.721
|
35.249 |
|
2. |
Innovativeness related factors
|
IN1. Boom in technical specification increases the OTT service users. 1N2. Technological innovation allows people more freedom of watch content in their comfort zone. 1N3. Viewers are comfortable in using new hi-tech products and services. |
.810
.496
.709 |
14.239 |
|
3. |
Ease of Use related factors |
EU1.Ease in accessibility is the main reason that increases the use of OTT media. EU2.OTT platform provides liberty in terms of choice to the consumers. EU3.The operation of OTT platform is clear and understandable. |
.766
.731
.575 |
6.868 |
|
4. |
Satisfaction related factors
|
S1.OTT platform is well defined media S2.Most of the people use OTT platform for entertainment purpose S3.OTT provides a wide variety of premium contents. S4.People can enjoy their favourite programs conveniently. S5.OTT platforms can be watched on both fixed and portable devices like mobile, TV. S6. OTT platforms offer unlimited viewing. S7.OTT platforms provide more personalized experience than television. S8.New movie releases and live concerts are quickly available on OTT platforms |
.868 .645
.755
.672
.804
.866 .911
.822 |
4.726 |
|
5. |
Complying related factors
|
CM1.OTT platforms provide employment opportunities CM2.In India OTT has a promising future. CM3.Viewers like to talk to others regarding various available option available on OTT platform CM4.OTT platform creates good relationship with others who have similar interest in movies, music etc. CM5.OTT medium is the fast-growing entertainment platform. |
.910
.669 .597
.582
.696 |
3.936 |
|
6. |
Convenience related factors
|
C1.OTT offers an option of entry and exit from the subscribed platform. C2.OTT platforms are generally ad free or there is less number of ads on it. C3.OTT provide pause and resume option. |
.753
.871
.640 |
3.106 |
|
7. |
Cost/Price related factors
|
P1. OTT channels are reasonably priced in terms of subscription options. P2. Subscription procedure of OTT platform is simple and economical. P3. Viewers are free to subscribe channels willingly in terms of creating their own preferred packs. P4. There is fluctuation in prices of OTT platforms over time. P5.The consumers have a choice of account sharing facility and various discount offers by OTT platform |
.902
.801
.771
.589
.956 |
2.815 |
|
8. |
Factors related to stress releaser during pandemic |
SR1.It acted as a stress reliever during the COVID. SR2.OTT platform gained popularity during Covid-19 epidemic. |
.968
.928 |
2.712 |
|
9. |
Factors related to insecurity during pandemic |
I1. Channel hacking is major problem in OTT platforms I2.OTT platform creates a virus for portable devices. I3.OTT platform has compatibility issues with the mobile devices |
.921
.842
.717 |
2.461 |
|
|
Cumulative Percentage |
|
|
76.111 |
Table 3. Factors loading variables with percentage of variables explained
In Table 3, it can be observed that nine underlying grouped factors have emerged as significant factors, which have been grouped on the basis of Eigen values and percent variance. It is the most important table in factor analysis result. It classifies It divides the data set's observations and statements into many categories. For the appropriate explanation of the result, it becomes essential to assign a collective label to the group of all individual factors having sound correlation coefficient. The labeling and grouping of underlying nine factors is presented in the table 3.
DISCUSSION
5.1 Content related factors
Content related factors are most significant factors. Content related factors are those factors which are directly related to the quality, service and facilities provided by the OTT platform. OTT platforms that cater to customers based on their age and preferences include short films, web series, and children's news channels. (Rahman et al., 2021; Baslaset al., 2020; Chatterjee and Pal., 2020). As per Table 3, the percent of variation explained by this factor is the highest. The percent variation explained by this factor is 35.249.This factor include various sub factors like OTT platform provide original content (significance value .910),OTT offered wide variety of content 24 X 7 (significance value .574),OTT platform provide international content with subtitles (significance value .940),OTT platform provide user friendly content (significance value .649), OTT offers good audio and video quality content (significance value .577), OTT platforms help people to search their favorite content faster (significance value .774), Description of the content helps to save time in exploring the content (significance value .523),OTT platforms are very quick to provide new exclusive content (significance value .393),Uncensored content discourages consumers from using OTT platforms freely (significance value .721)
5.2 Innovativeness related factors
Innovativeness related factors are second most significant factor.The percent variation explained by this factor is 35.249.OTT platform provides innovation in content by offering contents related to suspense, drama, excitement, terror, comedy, romance, sports and many more . As a result, content innovation becomes one of the most crucial variables (Singh, S, 2020).This factor include various sub factors likeBoom in technical specification increases the OTT service users (significance value .810), Technological innovation allows people more freedom to watch content in their comfort zone (significance value .496), Viewers are comfortable in using new hi-tech products and services (significance value .709).
5.3 Ease of Use related factors
As per the result the third important factor is the ease of use related factors. The percent variation explained by this factor is 6.868. OTT platforms give convenience in terms of banking, shopping, making travel plans, arranging events, and so on, navigation through these platforms must be made easy and less time consuming in a fast-paced consumer environment where time is limited. (Dasgupta and Grover., 2019). This factor include various sub factors like Ease in accessibility is the main reason that increases the use of OTT media (significance value .766), OTT platform provides liberty in terms of choice to the consumers (significance value .731), The operation of OTT platform is clear and understandable (significance value .575).
5.4 Satisfaction related factors
As per the results, the fourth important factor is satisfaction related. The percent variation explained by this factor is 4. 726.It also caters to the needs of people of various backgrounds, nationalities, and age groups. Educational stuff is available. Short films, web series, and children's news channels are among the OTT platforms that cater to customers based on their age and tastes (Rahman et al., 2021). This factors include certain sub factors like OTT platform is well defined media (significance value .868), Most of the people use OTT platform for entertainment purpose (significance value .645), OTT provides a wide variety of premium contents (significance value .755), People can enjoy their favorites programs conveniently (significance value .672), OTT platforms can be watched on both fixed and portable devices like mobile, TV (significance value.804), OTT platforms offer unlimited viewing (significance value .866), OTT platforms provide more personalized experience than television (significance value .911), New movie releases and live concerts are quickly available on OTT platforms (significance value .822)
5.5 Complying Related Factors
As per the result the fifth important factor is complying related. The percent variation explained by this factor is 3.936.OTT platform caters wide variety of entertainment platform, provide employment opportunities, creates good and healthy relationship with others and OTT media has a promising future. This factor include various sub factors like OTT platforms provide employment opportunities (significance value .910), In India OTT has a promising future (significance value .669), Viewers like to talk to others regarding various available option available on OTT platform (significance value.597), OTT platform creates good relationship with others who have similar interest in movies, music etc(significance value.582), OTT medium is the fast-growing entertainment platform (significance value.696)
5.6 Convenience related factors
As per the result the sixth important factor is Convenience related factors. The percent variation explained by this factor is 3.106. This facility will satisfy customers by allowing them to complete more tasks in less time. As a result, it's reasonable to conclude that one of the primary drivers of OTT platform adoption is the platform's convenience (Dasgupta and Grover., 2019; Gupta, P., 2021; Parikh, N., 2020; Sundaravel, et. al., 2020).Convenience related sub factors include OTT offers an option of entry and exit from the subscribed platform (significance value.753), OTT platforms are generally ad free or there is less number of ads on it (significance value .871), OTT provide pause and resume option (significance value .640).
5.7 Cost/Price related factors
As per the result the seventh important factor is Cost/Price related factors. The percent variation explained by this factor is 2.815.OTT promotes a cost-effective environment by offering account sharing, a number of tariff options, and a variety of data pricing plans. Anyone who wants to watch online digital content can sign up and pay a monthly or yearly subscription fee, making it affordable (Saini, N, 2020).This factors include certain sub factors like OTT channels are reasonably priced in terms of subscription options (significance value .902),Subscription procedure of OTT platform is simple and economical (significance value .801),Viewers are free to subscribe channels willingly in terms of creating their own preferred packs (significance value .771), There is fluctuation in prices of OTT platforms over time (significance value .589), The consumers have a choice of account sharing facility and various discount offers by OTT platform (significance value .956).
5.8 Factors related to stress releaser during pandemic
As per the result the eighth important factor is factors related to stress releaser during pandemic.The percent variation explained by this factor is 2.712.Stress during pandemic boosts the usage of OTT platform due to its easy accessibility and availability of numerous gadgets like smart phones, laptop, tablets, fire TV stick and many more (Jhala and Patadiya, 2021).Sub factors included in this factors are It acted as a stress reliever during the COVID (significance value .968), OTT platform gained popularity during Covid-19 epidemic (significance value .928).
5.9 Factors related to insecurity during Covid- 19
As per the result the ninth important factor is factors related to insecurity during pandemic. The percent variation explained by this factor is 2. 461.Sometimes OTT platform contains channel hacking and virus related factors. Factors related to insecurity during pandemic include the following sub factors Channel hacking is major problem in OTT platforms (significance value .921), OTT platform creates a virus for portable devices (significance value.842), OTT platform has compatibility issues with the mobile devices (significance value .717).
CONCLUSION
The internet video platforms show the capacity to generate a wide range of new opportunities for business expansion and growth. The findings of the study suggest that the OTT platform is very reliable and significantly affects users' propensity to use it. The main factor attracting people and arouse their attention on digital platforms is entertainment. The OTT platform encourages viewers to switch from traditional media to the OTT platform by offering a variety of aspects with multiple capabilities at an affordable price. It functions as a platform for stress release, especially during pandemics, and only then can growth reach its maximum. OTT players have access to a range of prospects and opportunities for growth thanks to OTT services. The market's increasing adoption of internet technology indicates well for the future of OTT platforms.
7.Limitations
Each paper has some constraints. Additionally, it is critical to accept the flaws. The current study has certain restrictions as well. First off, the results are not correct because the respondents delayed to answer the questionnaire and some biased respondents were recorded. Secondly, the sample size of 240 is insufficient, and an extra survey can be conducted to increase the accuracy of the results. Thirdly, this paper does not undertake any hypothesis testing, which is essential for producing the right results. Finally, there is always room to expand on future study by incorporating additional pertinent constructs into the research framework.
8.Future Implications
Customer acceptance and utilization are causing an enormously huge expansion of the OTT platforms in India today as a result of the internet recent rapid expansion and the country's adoption of digital technologies. It will be a fantastic opportunity for businesses to increase their capacity in order to generate profits and last for a very long time on the market (Anand et al., 2020). To clarify the definition better, the study has been extended to online shopping and can be broadened to other sectors. The study's reliability would increase with probability sampling. The OTT platform has been employed as a direct result of obtaining purchase intentions and consumer interaction. Future studies can take use of variables like familiarity and interaction (Priya et al., 2021).