CHAPTER 1

Introduction of the research

Digital platform-based subscription service is a business model in which consumers can use
services with regular payment on a monthly, or yearly basis (Ramkumar, B. and Hongjoo Woo 5(1)
2018) The development of digital technology and the growth of diverse platform businesses have
recently resulted in a new subscription service business model with an online-offline fusion. While
people mainly subscribed to information-related consumer goods, such as periodical publications,
books, and cellular phone bills, by the 2000s (Warrillow, J. The Automatic, 2015) digitalization had
led to innovation and growth of subscription services with the rise of ebooks and OTT services, among
others (McCarthy, D. M 2018)

Since subscription service automates a purchase decision through the procedure of generating
repeated purchases all the while linking sellers with consumers more closely (Bischof, S., Boettger,
2019), it is necessary to identify the decision-making factors among consumers with the objective of
preventing customer churn. However, most of the previous studies analyzed business models in terms
of subscriptionservice types and classification (Rudolph, T, 2017) or determined the demographic
characteristics and motivesof consumers' using subscription services (Woo, H. J, 2018) .From the
aforesaid discussion, it can be inferred that the digital era has undeniably opened up avenues for
streaming services to connect and engage with customers in real-time. In order to remain competitive, it
becomes imperative for the service providers to focus on key drivers that impact the customer’s
decision to stay connected to the firm and provide it steady flow of sales in future (Viswanathan et al.,
2017)

This study aims to determine through empirical analysis how the motives of using subscription services
affect perceived satisfaction and purchaseintention. In particular, an attempt was made to identify the
determinants affecting the purchase intention and satisfaction of consumers that leads subscription of
service of OTT platforms. On the basis of literature review regarding Internet and mobile shopping and
to ascertain their ultimate effects on consumers' purchase intention and continuous use intention. The
results of this study are expected to have specific implications for entertainment industry in terms of
subscription services strategy for recurring profits, instead of customers' one-time purchases.

Introduction of the Topic

In current times there is a rapid growth of technology and uses of the internet across India. This has
considerably changed the way people consume media. These days consumers have shifted from
traditional media channels to modern media channels for the source of entertainment. The demand of
over-the-top platforms has occupied the media space as it gives you the freedom to watch content of
your choice anytime anywhere without any major limitations. On OTT platforms you can watch the
movie and TV series at your complete convenience. No doubt that even today the majority of the
population do consume television and cable but at the same time we see a majority of the population
prefers OTT platforms like Netflix, Amazon Prime, and Hot star.

These platforms charge premium to provide a variety of services that make this platform an attractive
and better option. At first, these platforms have given Indian access to international content. Secondly,
they have fewer breaks and advertisements and most importantly they have smart algorithms that
suggest other movies or series based on the likes and past search history of their customer. The
platforms themselves are producing their shows apart from just playing TV content online and on-
demand.

The research aims to understand the OTT sector better and identify the various factors that influence the
satisfaction and purchase intension to subscribe over-the-top media platforms in India.

History and Evaluation

Entertainment has its existence for centuries through the art of storytelling, music, drama, dance and
different kinds of performances in all cultures. They were supported by the kings and tradition followed
in royal court, and over time it was made available to the general public.
People have different preferences for entertainment, but most forms are common and followed by all.
Entertainment is simply defined as something that holds one's attention and interest or gives pleasure or
delights. It can be an idea or task, but it's more likely to be one of the activities or events developed
over thousands of years for the purpose of keeping an audience’s attention, according to the Oxford
English Dictionary.

Entertainment can be public or private. It could be a formal, scripted performance found in a theater or
concerts, but at the same it can be unscripted and spontaneous like a live performance or a play. With
the evolution over the year some activities that were at some point considered as entertainment like
public punishment were removed from the public auditorium, while others events like fencing or
archery which were deemed as necessary and have become serious sports or careers, cultivating an
appeal to bigger audiences. At large the entertainment has sustained for many centuries and is still
growing due to transformations in cultures. It is parallel to technology and fashion as is the case with
films and video games which are new forms of media that continue to tell stories, present drama and
play music. Festivals attract audiences over a number of days in the form of music, film or dance. Live
performances before the creation of audio and video recording included a major form of entertainment
ranging in form from theater to music to drama.

In the 16th and 17th centuries, European royal courts presented masques which involved singing, acting
and dancing. Opera continues to stay a popular form of entertainment as it comprises all three forms,
mandating a high level of musical and dramatic skill, cooperation and production technique. Audiences
reward the performers with applause or in some cases with brutal direct honesty when the performers
fail to hold their attention.

The shift in cultural and historical phenomena has caused changes in entertainment as well. The venue
and form of entertainment has continued to change according to period, fashion, culture, technology
and economy. For example, a dramatic story can be presented in an open air theater, music hall, movie
theater, a multiplex or using technology such as a tablet computer or other personal electronic device.

Technological developments in the 20th century have led to entertainment being produced independent
of the audience, packaged and sold by the entertainment industry on a commercial basis. Referred to as
show business by many, the industry relies on a business model to produce, market, broadcast or
distribute many of its traditional forms as well as performances of all types. Due to the immense
success of the industry, its economics has led to a separate area of academic study. The film industry is
one part of the entertainment industry with several homes around the world including Hollywood,
Bollywood, cinema of the United Kingdom and all cinemas of Europe including France, Germany,
Spain, Italy and others. The sex industry is another component of the entertainment industry which
applies many of the same forms and media to development, marketing and sale of sex product on a
commercial basis as well. Amusement parks entertain paying guests with rides, events and associated
attraction. A consequence of the development of the entertainment industry is the creation of new types
of employment where writers, musicians and composers are employed by a company rather than a
patron or individual as they have been in the past. New jobs like gaffer or special effects supervisor in
the film industry and attendants in amusement parks have appeared. Prestigious awards are now given
by the industry for excellence in various types of entertainment such as for music, games, comics,
comedy, theater, television, film, dance,

magic and sporting awards.

Three events have created a boom of digital and traditional entertainment - 1) globalization, 2)
obsolescence and 3) convergence. In the second half of the 20th century, development of electronic
media made it possible to deliver entertainment products to the entire audience globally. Today,
technology has enabled consumers to see, hear and participate in various forms of entertainment such as
stories, theater, dance and music no matter where they live. This rapid development of the technology
has contributed to the improvements of data storage devices and increasing miniaturization. In the
1940s, radio was an electronic media for entertainment and news. In the year 1950, television became
the new medium that rapidly changed the medium for entertainment and news as it had access to both
visual and audio entertainment. In the 1970s we saw the dawn of electronic games where hand held
devices provided mobile entertainment by the last decade of the 20th century. As new and better
technology came into the market, many old recording and storage methods became obsolete. The
progression of television as a medium for standardized entertainment went from unknown, to novel, to
ubiquitous and finally superseded its predecessors.

The “digital revolution” has led to an increasingly transnational marketplace making it more difficult
for governments to regulate, business, industries and individuals to keep up. By the second decade of
the 21st century, digital recording has replaced analogue recording leading to a convergence of all
forms of electronic entertainment. Convergence has affected the film industry as the opening weekend
of a movie is no longer the only factor to determine success as now the digital aspect factors greatly in
order to maximize profits. The industry has had to evolve as new and better technology is released to
the general

public such as DVDsto pay per view to fiber optic video on demand to now video hosting services.
Media convergence is more than just technology, it’s cultural as well. Globalization and cultural
imperialism are two of the culturalconsequences of convergence and the result of deliberate efforts to
protect business interests, policy institutions and other groups. Fandom and interactive storytelling
have led to the distribution and impact of a wide range of delivery methods. The introduction of
television has altered the availability, cost, variety and quality of entertainment products for the public
and the convergence of online entertainment is having a similar effect e.g., individuals and corporations
use video hosting services to broadcast content the public sees as legitimate entertainment. Although
the method of delivery has changed, the forms have remained the same as centuries ago.

Current perspective

The term entertainment has been attributed to a banquet, night events or storytelling in early age but
today it has evolved in very different ways. Entertainment sectors have figured out ways to adapt to the
new technological developments and as always are still attracting consumers and staying stagnant.
 India has a large broadcasting and distribution industry, comprising approximately 900 satellite TV
channels, 6,000 Multi-system operators, around 60,000 local cable operators, 7 DTH operators and few
IPTV service providers.

India has 118,239 registered publications (newspapers and periodicals), close to 2,500 multiplexes and
more than 570 mn Internet users – second largest base after China, and is expected to reach out to 640
mn by 2019.

By 2022, Media & Entertainment industry is expected to reach $34 bn at a CAGR of 10%

The overall online video market for India is projected to grow at a CAGR of 26% between 2020 and
2025 to reach $4.5 bn in revenue over the next five years

OTT content cost may grow at a CAGR of 18 percent to reach $1.6 bn between 2020-2025

Up to 100% FDI allowed in Teleports, DTH, Multi-System Operator, cable networks in DAS areas,
mobile TV, Headend-in-the-Sky Broadcasting Services

100% FDI is allowed in Publishing/ Printing of scientific and Technical magazines/ Speciality journals/
Periodicals under the government route

Industry Scenario

The Indian Media & Entertainment industry will touch $34.8 bn by 2022
The Indian M&E industry is projected to grow at a pace of 14% over the period 2016-2021, outshining
the global average of 4.2% CAGR, with advertising revenue expected to increase at a compounded
Annual Growth Rate (CAGR) of 15.3% during the same period.

Television is expected to grow at a CAGR of 14.7% over the next five years as both advertising and
subscription revenues are projected to exhibit strong growth at 14.4% and 14.8% respectively.

Print is projected to continue its growth at 7.3%, largely on the back of continued readership growth in
vernacular markets and advertisements' confidence in the medium, tier II and tier III cities.

Film’s segment is expected to bounce back and is forecasted to grow at CAGR of7.7% as the revenue
streams broaden

Digital media overtook filmed entertainment in 2019 to become the third-largest segment of the M&E
sector Animation and VFX is expected to grow at a CAGR of 20.4% over 2016-2021
OTT content investments in India touched $700 million in 2020

Even before the coronavirus outbreak was announced television entertainment industry was
sufficiently prepared to reach the homes. As it has been a few years now that the experience of
watching movies, reading newspapers or having entertainment has changed, its definition has changed.
We are more reliant on smartphones than just on theatres or televisions.

The Indian Media and Entertainment (M&E) industry is a sunrise sector for the economy and is
making significant strides. Proving its resilience to the world, Indian M&E industry is on the cusp of a
strong phase of growth, backed by rising consumer demand and improving advertising revenue. The
industry has largely been driven by increasing digitization and higher internet usage over the last
decade. The Internet has almost become a mainstream media for entertainment for most of the people.

Media is consumed by audiences across demographics and various avenues such as television, films,
out-of-home (OOH), radio, animation, and visual effect (VFX), music, gaming, digital advertising, and
print.
India’s advertising revenue is projected to reach Rs. 789 billion (US$ 10.81 billion) in FY22 from Rs.
726 billion (US$ 9.94 billion) in FY20. India’s advertising revenue is forecast to expand at a CAGR of
4.3% between FY20 and FY22. Digital advertising revenues are likely to outweigh TV advertising
revenues by FY21; an achievement previously projected to occur only by FY23. Digital advertising
emerged as the second-largest advertising medium in India; generated revenues worth Rs. 199 crores
(US$ 2.73 billion) in FY20.

The COVID-19 pandemic is changing the way we consume media and entertainment (M&E). With
people confined to their homes, our social lives have moved online and entertainment consumption has
risen notably within the at-home segments of television, online gaming and over-the-top (OTT). On
the other hand, movie theatres, theme parks, museums, and other external consumption models are
suffering, as physical distancing norms and lockdowns are enforced.

The pandemic has triggered layoffs in certain M&E segments such as print and television media [1] as
advertisers scale back spending. As monetization, particularly ad-spend, comes under pressure, cash
management and profit protection with greater technology integration are likely to gain strategic
significance for M&E companies.

Today Television networks offers previews and re-launch of their TV shows as Web sites on digital
platforms. Even Readers can use eBooks through Amazon and other booksellers. Newspapers for
example, the New York Times allow readers to read articles online before they ask them to subscribe.
Even Magazines have created their online versions of their editions with interactive features.

Porter's Five force Model

https://yourfreetemplates.com/porters-five-forces-templa

Bargaining power of consumer

 HIGH

● Consumer can switch to channels or other mediums for entertainment

● Increase of internet and technology
● Easy availability of variety of content
● Increased Globalization

Threat of new entrants

LOW

● High capital requirement

● High sunk cost
● Difficult access to distribution
● Tough to reach the wider audience and compete the establishment marketers

Bargaining power of suppliers

LOW

● Increased number of content providers

● Constantly adapting to the change of demand

Competitive within industry

HIGH

● High fixed cost

● Highly perishable products
● Highly fragmented industry
● Highly diversify rivals

Threat of substitute

● Film industry
● Digital entertainment industry
● Significant cultural events
● Significant sports event (world Cup)
● Internet
● OTT platforms
 SWOT Analysis

SWOT analysis was created in the mid-20th century by Albert Humphrey. It is the most effective
business tool that is used as part of marketing plans to decide strategies of a business. It helps to
understand the effect of internal and external factors of a company.

https://tallyfy.com/swot-analysis/

SWOT is an abbreviation that stands for:

S strength
W weakness
O opportunity and
T threat

Strength
● It provides variety of services at one place
● It demanded by all-in-one way or the other
● It covers all the entertainment platforms and hence has reach to the wider audience.
● It provides relevant unique and creative content.
● It requires huge capital and also contributes to the economy on large scale
● It has various employment opportunities and large human resource

Weakness

● Uneven revenue
● Tough to beat competition on national and global level
● Major shift to online, free and pirated content.

Opportunity

● These days digital content has more demand than traditional content.
● All the businesses are shifting to digital platforms.
● A lot of movies are now released on digital platforms rather than theatres and due to which the
subscription of digital viewership has increased.
● It is easier to keep pace with new technologies and trends.

Threats

● Variety of different platforms and sources of entertainment.

● Falling cable subscription
● Cut throat competition in content creation.
● Audience shifts to different brands and agencies very quickly

Challenges of Industry

1. Improving Customer Intimacy

Today it is important for the entertainment industry to connect with the audience in such a way that
it spends more time consuming the content. This can be done by establishing an intimacy with its
audience through emotions, content and relative storyline. Today, the majority of the audience
demand the content to be the balance of fantasy and reality like documentaries and stories that are
relatable yet manage to entertain.

2. Audience interest and predictions

In current times one has to serve the content that a consumer is speaking rather than serving the
content that the producer wants to produce. When you talk about the entertainment and media
industry there are places where you cannot track audience moments that you like and dislike but
today with the help of digital platforms that has been possible one is able to detect what exactly the
audience is looking for and improve their services according to the needs of the customers.

3. Effective ad targeting

In the end entertainment is the business and most of the profits are earned through advertisements.
In order to maximize the profits in the entertainment sector it's necessary to target the right
audience to consume your content and thereby also target advertisements that are related to it.

4. Converging and remixing entertainment experiences.

The COVID-19 pandemic has accelerated consumers’ willingness to experiment with their
entertainment options. The hard lines
that used to exist between content and distribution channels are increasingly blurring. The
coevolution of entertainment
 and technology is helping fuel new service offerings and entertainment bundles for consumers—
necessitating new strategies and agile approaches for companies and creators.

5. Competition

Entertainment sector has the highest competition when it comes to sources of entertainment,
variety of content as well as quality of content. Today's audience doesn't limit their choices to one
genre language or styles. They explore the content from all over the world. After digitalization and
OTT
platforms people have access to entertainment on their fingertips that too at a very low cost. One
can read a book, watch Korean movies or British dramas, assess live performances and events that
have made it more difficult and challenging for traditional entertainment sources to survive.

Advantages.

1. India is the second largest entertainment industry in the world.

India is second largest in terms of film making and earning box office collection via cinemas. It has
the widest reach in the audience. Produces more than 1000 films across the country in several
regional languages, short films and documentaries. Today it provides employment to many people
and appreciates talents of all the forms. It also has gained major popularity across the globe over
the time and is coming with strong collaborations with series, books and new content that tries to
beat the competition at international platforms.

2. Media and Entertainment is one of the most booming sectors in India.

Due to its vast customer reach, India's entertainment industry is one of the most profitable sectors.
It has audiences for every type of content be it radio television print media, and it is heavily
consumed on a day-to-day basis as well. The various segments of the Media and Entertainment
industry like television and film industry have a large customer base they earn and contribute major
share of entertainment industry however; they are fact challenges in the international market. Entry
in this market has become easy over the time due to YouTube, social media and other digital
platforms, though it is difficult to survive with existing competitors and bring out newness in the
industry.

3. The growing middle class with higher disposable income has become the strength of the Media and
Entertainment industry.

Today entertainment is not just considered as a medium to pass extra time but it has become the
idea of leisure. People from various classes tend to spend more money on entertainment rather than
spending it on any other thing. Entertainment here can be considered of various forms like
amusement parks concerts clubs movies monthly subscription on OTP platforms, so on and so
forth. It is believed that even middle-class people spend at least 2 hours of the day in consuming
entertainment of some sort; this habit has increased their spending on entertainment that results in
higher profits of the sector.

4. Change in the lifestyle and economic spending of the Indian audience on entertainment.
 Entertainment has more or less always been a part of our lifestyles. Today entertainment is
considered to be just one click away. It is conveniently available everywhere from radios in the
cars to televisions computers and most importantly mobile phones. You can have access to
entertainment at any place and anywhere it has become an inseparable part of our lives. We don't
limit entertainment to just movies and series but even audio books, podcast short videos, pink
subscription for music and what not. It is said that, on an average, a person spends 10% of their
monthly income on entertainment.

5. Technological innovations.

With digital evolution like even entertainment has shifted vastly to digital platforms. It's online
distribution channels, web-stores, multi- and mega-plexes are complementing the ongoing
revolution and the growth of the sector. This has not only given rise to the entertainment industry
but also has raised the opportunity for new creators, talented people to make their own space with
low investment and earn higher returns.

6. Provides employment.

The entertainment industry is one of the largest employers. From the street magician to the galaxy
of stars we see on TV, they are all earning a living because of entertainment. It also plays a great
role in fostering the economy in that a lot of tax is collected from the industry. This is one of the
top reasons as to why it should be supported and allowed to thrive. Entertainment industry also
gives major opportunities to the advertising industry. Reports have always been interdependent on
each other as a source of revenues and both sectors contribute to a lot of employment opportunities
and encourage creativity and talent.

Need for the study.

In the year 2021, the media, and entertainment industry have considered different strategic
opportunities for both to recover from the COVID-19 crisis and to hold the position themselves to
thrive in the future.

Entertainment industry has suffered heavily due to this and thus there need to study what could be
the future strategies. However, before we studied the future strategies it was important to
understand the current scenario of the industry. As we all know television was one of the major
sources of entertainment for decades now but slowly audiences have been shifting to OTT
platforms. This shift has risen in the year 2020 due to several factors, one of the major factors
could be pandemic but it is important to understand various other factors that are impacting the
purchase behavior of the audience.

These purchase intentions can be a new turning point for the entertainment industry. These reasons
could differ from person to person. Every age group, every demographic area and every class in the
society has different reasons for shifting from television to OTT platforms. This study aims to
understand which set of audiences prefer what kind of entertainment and what are their reasons to
subscribe OTT platforms.
Importance of the Study

This study aims to bring clear perspective on why audiences are prefer OTT platforms and what
their preferences are from all the available entertainment options.

This will help the producers in understanding the consumer better and focus on customers’ needs
by taking a more specific approach to customer engagement specially regarding content and right
platform.

It focuses on new emerging trends in the industry and ways one can adapt these changes by
forming new strategies, shifting to new platforms for its audience and simultaneously coexisting
with the old platforms and audiences.

Study also tries to bring out diffusion of the innovation theory by segmenting different consumers
into adapters. It Studies in that which consumers are innovators, early adopters, the early majority,
the late majority and laggards.

Study will also assist in converging and remixing entertainment experiences through new service
offerings and entertainment bundles—and by adopting new strategies that can enable business
agility.

It will further be helpful in repositioning by grabbing new opportunities in new kinds of markets
while still keeping balance with old one through new products, services, and business models.

Identification of the Problem

As one witnesses the change in trends of entertainment and media it is evident that the shift from
one technology to another would be slow and gradual. as referred to earlier times when cinema
television came it took almost a decade for people to completely switch over the television sets
from radio.

However, even today there is a large audience that has favouritism towards radio, be it car, tea
stalls, highways, radios haven't yet completely replaced by other technologies. Similarly, when you
consider in today's time OTT platforms have captured the large share of the audience but it is still
difficult to say whether it will be able to replace other sources of entertainment like television
cinema halls and radio.

With changing times, it is important for marketers to understand in what ways it can improve its
products in order to exist in the market when it is faced with new competitions.

For example, when we consider the entertainment industry at one point cassette industry was in
huge demand but was replaced by DVDs in a short time. while on the other hand DVD market had
huge potential and survived for a very long time but today is replaced by pen drives and hard disk.
So, when a marketer doesn't update it himself which shortcomings of future technology it fails to
survive in the market.
 Today the same principle applies on television as compared to OTT platforms. A television
industry to coexist with OTT platforms it is important to understand what are the factors that
influence the audience and what are the areas that they are lacking in providing services to the
consumer. When one understands this gap and identifies what the problems are, one can solve it,
update itself and coexist with updated technologies.

Research Question

1. What are the factors that make consumers subscribe to OTT platforms?
2. Which age group is most influenced by OTT platforms?
3. What factors lead to purchase intention and satisfaction of consumers using OTT platforms.
Chapter 2: Literature review

Review of literature

From the aforesaid discussion, it can be inferred that thedigital era has undeniably opened up avenues
for streamingservices to connect and engage with customers in real time.In order to remain competitive,
it becomes imperative for the service providers to focus on key drivers that impactthe customer’s
decision to stay connected to the firmand provide it steady flow of sales in future (Viswanathanet al.,
2017).Though past studies conducted in the digital and onlinecontext (e.g., Chang & Chen, 2008;
Delafrooz et al., 2011)have provided an exhaustive list of such factors that includethe quality and
usefulness, perceived ease of use, attitudeof customers, trust, perceived risk, security, engagementand
service experience to mention a few, the present study
includes only two primary antecedents, namely, customerengagement (CE) and quality of service
experience (QoSE)due to their relevance for streaming services in the currentsituation of pandemic
lockdown. With a number of OTTservices to choose from, the way the service provider
engages the customers becomes really important for themto attract attention (Gardner, 2020). Further,
due to a surgein internet consumption during the lockdown (Madhukalya,2020), it has become
necessary for service providers tosearch for ways to deal with the problem of increaseddemand for data
without hampering the QoSE, elsecustomers will easily switch to another service providingbetter
quality (Van Daele, 2020). Taking support fromthese recent studies, the current work devotes attention
tothe influence of these two factors on customers’ WCS
streaming services as well as examines the role ofsatisfaction and habit in affecting the aforesaid
impact. Adescription of these constructs is provided below.

Satisfaction 

Given the increasing importance of entertainment as a retailing strategy, study by (J.JosephCroninJr,

2003). shows that consumers’ shopping motivations are based on adventure, gratification, role, value,
social, and ideal shopping motivations. Satisfaction gives a definition that states ‘a summary
psychological state when the emotions surrounding disconfirmed expectations are coupled with the
consumer’s prior feelings about consumption experience’ a lot of research shows the results that are
somewhat counterintuitive and they show that levels of customer satisfaction for a service
chosen online is the same as when it is chosen offline, because loyalty to the service provider is
higher when the service is chosen online than offline. ( venkateshshankar, 2003). Later the
studies revealed that quality, expectations, satisfaction, and satisfaction's effect on repurchase are
higher — and repurchase likelihood is lower — it has its impact on competition, differentiation,
involvement, and experience and when it is high the switching costs, difficulty of standardization, or
ease of evaluating quality is comparatively low. (Eugene. W. Anderson).A conceptual framework to
investigate the relationship between service quality, satisfaction, repurchase intention, and switching
behavior. It also intends to prove the importance of corporate image in terms of reputation and
credibility in customer satisfaction. Delivering high quality service and a credible corporate image
results in high customer satisfaction, which in turn leads to high repurchase intension and less switching
behavior. (Narendra K. Sharma,2013).Perceived service quality and satisfaction have generally
been conceptualized to be distinct constructs, but there isn't a good understanding of their
relationship. Results indicate that the two constructs are, in the present case, distinct, and
there is some support for the model, with several modifications.(Richard A. Spreng,Robert D.
Mackoy)
H1- Perceived satisfaction positively influence purchase intention of subscription of OTT
Platforms.

CUSTOMER ENGAGEMENT.

With research in the field of User Engagement firms have managed taking a more integrative and
comprehensive approach that acknowledges their evolution and impact over time. Concept of CE has
changed in the last decade with researchers defining the concept in numerous ways. However, focus of
these definitions are based on consumer psychology but few of them emphasis on the impact of CE
behaviors that highlights the brand's response. (Doorn et al., 2010) In an increasingly networked
society customers can interact easily with other customers and firms through social networks and
different media. Customer engagement is considered as a behavioral manifestation toward the brand or
firm that goes beyond transactions. (Peter C. Verhoef 2010) To define, CE the intensity of an
individual's participation in
connection with offerings or activities, which either the customer or the provider initiates. Considering
reliability of consumers, value, loyalty, trust, commitment, word of mouth, and involvement are
consequences of CE. (Vivek et al., 2012). Organizations are consistently trying to gain customer
participation and engagement with their brands that has shown close results in the level of a customer's
cognitive, emotional and behavioral investment in specific brand interactions (Hollebeek, 2011, pp.
555–573). Studying the consumption patterns and adaptability factors brought out four themes that
ensure higher engagement levels of these platforms were convenience, mobility, content and
subscription strategies. (Dasgupta, 10(1), 2019, pp. 61-71.) creation of co-creative customer
experiences results into a sustainable relationship of the company with its customers (Brodie et al.,
2011). Considering services as one of the important purposes for organizations to keep their customers
engaged, studies in both offline (Brodie et al., 2011; Vivek et al., 2012) and online context have shown
a positive linkage between user engagement and purchase intentions that related to satisfaction. The
similar linkage is tested for streaming services through the following hypothesis:

H2 -Customer engagement positively influence perceived satisfaction regarding of OTT Platforms.

Customer Engagement and satisfaction:

The growth of technology mediated environments is accelerated by its accessibility and easy use tools,
such as smartphones and tablets. User friendly and intuitive features of services drive user value and
satisfaction. These features motivate and drive further for OTT services user engagement.( Young
Hoon Kim, Dan J. Kim, Kathy Wachter,2013)
Quality services

After much research in the service industry, it is found out that if they want their customers to continue
the services, they need to provide them with an experience that gives them return value for what they
invest. This quality of service (QoS) has largely been understood by researchers as a user’s delight or
acceptance towards the service. This quality, ultimately results in the fulfilment of customer’s
expectations. (Qualinet White Paper, 2013). Quality of service experience ties together user perception,
experience, and expectations to monitor the performance, that is expressed by quality-of-service
parameters. Quantitative relationships between QoE and QoS are required in order to understand the
purchase intention of the user.(M Fiedler,2010). Discussing different factors that impact quality of
service and its experience in the context of media consumption, networked services, and other
electronic applications. It can be subject to a range of complex and strongly interrelated factors, falling
into three categories: satisfaction, habit and customer engagement. (Ulrich Reiter,2014) Contribution
for understanding the quality of OTT services Parameter to measure quality assessment was
chosenQoE-Quality of Experience and number of factors that directly affect the assessment of QoE. It
finds out optimal solutions to ensure the quality of OTT services. ( V.S. Elagin, 2019). Quality of
Service (QoS) differentiation focuses on user-centric marketization. In this context, the key role
willingness to pay and purchase intention for quality is being studied. Willingness to pay for quality, as
well as remarkable influences on the quality perception through purchasing decisions is based on
adaptation of existing Quality of Experience models. (Sackl A., Zwickl P., Reichl P. 2012) It is
demonstrated that users with higher Quality of service and experience will have greater willingness to
pay, the better the service quality the better chances of satisfaction that leads to purchase intention 
(Richard A.Spreng, 1996) thus lending support to the
formulation of following hypothesis:
H3: Quality service positively influence perceived satisfaction regarding OTT Platforms

Quality services and Satisfaction

Quality of services leads to positive impact on satisfaction that was found out with the help of
perception of service quality and its impact on satisfaction. It further concludes that hygiene dimension
had a higher impact on satisfaction than the service dimension. ( Erkan SAGLIK, Ali Caglar
GULLUCE, Ufuk KAYA,2014)

Utilitarian value
Utilitarian values express that marketers offer web-based shopping typically try to provide a
convenient, safe, and pleasant online environment, appropriate to addressing shoppers' functional goals.
They might also try to create an experience that encourages a sense of deep involvement that is
intrinsically enjoyable, because they assume that this enhanced experience leads to more online buying.
Research suggests that utilitarian elements that facilitate service may indeed increase purchasing.
However, it was found to be unrelated to online buying, although they are positively related to
outcomes associated with Internet use. (Eileen Bridges, 2007) More or less studies to establish the one-
dimensionality, reliability, and validity. Research also  develops and implements a unique process of
large sets of items. Nomological validity is established by replacing a typical, one-dimensional attitude
toward the brand measure with the hedonic and utilitarian dimensions in a central route processing
model. ( Kevin E, 2003). Existence of many studies focusing on the impact of the service on user’s
online experience, there is a lack of research on the effect of values on the different dimensions of
online platforms perceived quality results can also have immediate and direct implications for
companies who want to improve a specific dimension of their services in OTT sector (Reza Etemad-
Sajadi, 2015).  A lot of research shows the results reveal that utilitarian value exists for the overall retail
service experience, for retail service across different types of product/category choices and also for
shoppers on each end of the more holistic hedonic-utilitarian value continuum for the activity of
shopping. (Gregory T. Bradley,2016). Based on the literature study on customer value and service
dominant, this study suggests that hedonic and utilitarian value derived from co-creation of a service
recovery contribute to perceived equity and affect toward the service recovery, which, in turn, enhance
customers repurchase intentions. ( Joohyung Park, 2015).thus lending support to the formulation of
following hypothesis:

H4 Utilitarian value positively influence perceived satisfaction regarding OTT Platforms

Utilitarian and Perceived satisfaction : It focuses to identify the influence of perceived risk in the
purchase intention environment regarding innovative services. Implications of the study described as
the perceived risk moderates hedonic features less compared to utilitarian features regarding purchase
intention. (ArrudaFilho,Emílio José Montero2018)

Hedonic Value.
With time consumer researchers' interest in consumer experiences has shown that many consumption
activities produce both hedonic and utilitarian outcomes. There is an increasing need for scales to assess
consumer perceptions of both hedonic and utilitarian values. Results demonstrate that distinct hedonic
and utilitarian shopping value dimensions exist and are related to a number of important consumption
variables. Implications for further applications of the scale are discussed. (Barry J Babbin, 1994). The
research offers marketers Web-based shopping typically try to provide a convenient, safe, and pleasant
online environment, appropriate to addressing consumers' functional goals. Hedonic model implies to
create an experience that encourages a sense of deep involvement that is intrinsically enjoyable,
because that helps them to assume that this enhanced experience leads to more online buying which
ultimately has (EileenBridgesa, 2007). Hedonic value approaches consumption as those facets of consumer
behavior that relate to the multisensory, fantasy and emotive aspects of product usage experience. After
studying these concepts, discussion found differences between the traditional and hedonic views,
methodological implications of approach, and behavioral propositions in four substantive areas relevant
to hedonic consumption that are mental constructs, product classes, product usage and individual
differences. (Elizabeth C. Hirschman, 1998). Over the times  theories show that consumer attitudes
have distinct hedonic and utilitarian components, and that product categories differ in the extent to
which their overall attitudes are derived from these two components. This paper reports three studies
that validate measurement scales for these constructs and, using them, show that these two attitude
dimensions do seem to exist; are based on different types of product attributes; and are differentially
salient across different consumer products and behaviors. ( Rajeev Batra, 1991.) More or less studies to
establish the one-dimensionality, reliability, and validity. Research also develops and implements a
unique process of large
sets of items. Nomological validity is established by replacing a typical, one-dimensional attitude
toward the brand measure with the hedonic and utilitarian dimensions in a central route processing
model. ( Kevin E, 2003). Given the increasing importance of entertainment as a retailing strategy, this
study identifies a comprehensive inventory of consumers’ hedonic shopping motivations and that leads
to satisfaction and purchase intention. (Mark J,2003).  thus, lending support to the formulation of
following hypothesis:

H5 - Hedonic value positively influence purchase intention regarding OTT Platforms

Hedonic and Purchase intention: It focuses to identify the influence of perceived risk in
the purchase intention environment regarding innovative services. Implications of the
study described as the perceived risk moderates’ hedonic features less compared to
utilitarian features regarding purchase intention. (Arruda Filho,Emílio José Montero2018)

Research Gap
Focusing on customer experience now is more critical than ever, with the customers evolving, being
more explorative in nature and more ‘polygamous’ in their choice of brands. Today, customer
experience is one of the top ranked strategic priority amongst leading companies, especially in markets
where there is intense competition.
Hedonic value is the value that customer receives based on the subject experience with the degree to
which a service arouses emotions and creates pleasant experiences.
Utilitarian Value is to understand service that helps the consumer solve problems and accomplish
tasks. It offers a rational explanation of why something is purchased.
considering previous research, in the service industry, aspects of consumer habit impacting satisfaction
and purchase intention were not discussed while considering the hedonic approach and utilitarian
approach study implies to understand consumer intention toward purchase and experience toward OTT
platforms. Taking different modes age groups and geographic locations that impact the decision of
buying the services

Construct Description Source

Customer Follow news, talk about it Sarkar and Sreejesh
engagement to others, visit pages of (2014);
provider’s website, read
Toor et al. (2017)
posts about these services,
seek reviews from others.
Quality of Services accessible on Ström and Martínez
service different devices, (2013)
availability of playlist,
uninterrupted flow of
content, good quality of
media, good quality of
content, easy to use.
Satisfaction Feel good to use this Caruana et al.
service, good idea to use (2000);
services of this provider,
Grace and O’Cass
overall satisfaction.
(2005)
Hedonic Studies the value that Chiu et al. (2012)
customer receives based on
the subject experience with
the degree to which a
service arouses emotions
and creates pleasant
experiences.
Utilitarian To understand service that Chiu et al. (2012)
helps the consumer solve
problems and accomplish
tasks. It offers a rational
explanation of why
something is purchased.
Purchase Likelihood of continuing, Chu and Lu (2007);
willing to subscribe in Tsai
future, would recommend to
et al. (2015)
others.

Table 1
Measurement model
H1 - Perceived satisfaction positively positively influence purchase intention of subscription of
OTT Platforms.

H2 - Customer engagement positively influences perceived satisfaction regarding of OTT

Platforms.

H3 - Quality service positively influence perceived satisfaction regarding OTT Platforms

H4 - Utilitarian value positively positively influence perceived satisfaction regarding OTT

Platforms

H5 - Hedonic value positively influence purchase international regarding OTT Platforms

The questionnaire for the study, prepared on Google Docs, was divided into five broad sections. The
first section sought information related to users’ demographic characteristics.The second & third
section included statements related to the two primary antecedents, namely, CE and QoSE. The
fourth section included statements for two variables, that is, Hedonic and Utilitarian as well as
statements that tapped consumers’ habit of consuming streaming services during the current
period.The third section included statements for two outcome variables, that is, satisfaction and
purchase. For all the measures, the scales used/developed by previous researchers provided
necessary validity and were adopted with suitable modification in the present work. A few
statements were negatively phrased to avoid response bias that could occur due to the use of seven-
point Likert format (strongly disagree 1 to strongly agree)
The details of the description of various measures along with table 1

Chapter 3 Research Methodology

Research Objective:
The primary aim of the study is to ascertain the major determinants of purchase intentions and
their willingness to continue subscription for OTT platform users, the other objectives can be
stated as:
1. To understand Satisfaction as mediator in the relationship between CE and PI to
streaming services
2. To understand Satisfaction as mediator for the relationship between QoSE and PI to
streaming services
3. To evaluate Buyers' satisfaction is positively related to their habit of Subscribing to
OTT platforms
4. To understand whether theHedonic value is positively related to the habit of purchasing
OTT platforms
5. To understand whether Buyers' satisfaction is positively related to their habit of Subscribing
to OTT platforms
6. To evaluate the habit of Subscribing OTT platforms reduces the repeat purchase intention
 Data collection

Data Collection Data was collected through a self-administered questionnaire. In total 500
questionnaires were mailed to the respondents out of which only 300 were received back. After
deleting responses with more than three missing answers and removing outliers, only 250
remained. The respondents were distributed on various demographic factors like gender, age,
education and occupation.

Data Analysis:

Here the H1 is positively impacting in increasing Purchase Intention of subscribing OTT platforms.
While evaluating the relationship it shows positive impact of 0.3034 So it depicts that for every 10%
increase in engagement i.e., 30.34% increase in Purchase Intention. Researcher stimulates the boot
strapping process with the sample, which indicates average of
impact 0.3047, which is marginally higher than the original impact between the two variable and
average variations 0.060 with t- statistics 5.0070 and having significant value 0.0000.
 Testing Research Hypothesis
Mean, S.T. Dev, t-Value, P-Values Percentile bootstrap
Standard bootstrap results quantile
Here Effects Origina Mea Standa T- P- p- 0.5 2.5% 97.5
the l n rd Val Val valu % % 99.5
H2 is coeffici Val error ue ue e (1- %
ent ue ( 2- side
(Side d
d
PERCIEVE 0.3034 0.304 0.0606 5.007 0.000 0.15 0.184 0.421 0.458
D- 7 0 0 0.00 29 9 7 6
SATISFACT 00
ION ->
PURCHASE-
INTENTION

CUSTOMER 0.4521 0.449 0.0670 0.00 0.00 0.27 0.316 0.577 0.612
- 5 6.747 00 00 53 2 0 8
ENGAGEM 4
ENT ->
PERCIEVE
D-
SATISFACT
ION
CUSTOMER 0.1372 0.138 0.0397 3.459 0.00 0.05 0.069 0.223 0.252
- 3 2 0.00 03 45 3 1 6
ENGAGEM 05
ENT ->
PURCHASE-
INTENTION
QUALITY- 0.2257 0.228 0.0650 3.474 0.00 0.06 0.106 0.358 0.401
SERVICE -> 4 4 0.00 03 76 66 3 0
PERCIEVE 05
D-
SATISFACT
ION

QUALITY- 0.069 0.0232 2.955 0.00 0.00 0.01 0.028 0.118 0.134
SERVICE 0.0685 2 2 31 16 90 6 3 0
->PURCHAS
E-
INTENTION
UTALITARI 0.133 0.0449 2.945 0.00 0.01 0.047 0.223 0.253
AN -> 0.1322 9 5 0.00 16 95 5 6 0
PERCIEVE 32
D-
SATISFACT
ION
UTALITARI 0.0401 0.040 0.0159 2.525 0.01 0.00 0.00 0.013 0.074 0.086
AN -> 7 8 16 58 53 0 6 1
PURCHASE-
INTENTION
HEDONIC- 0.2507 0.256 0.0564 4.445 0.147 0.367 0.405
VALUE -> 5 4 0.00 0.00 0.11 5 6 1
PURCHASE- 00 00 41
INTENTION
positively impacting in increasing Purchase Intention purchase Intention of OTT services. While
evaluating the relationship it shows positive impact of 0.4521 So itdepicts that for every 10%
increase in Quality-of-service0i.e., 45.21% increase in Purchase Intention. Researcher stimulates the
boot strapping process with the sample, which indicates average of impact 0.4495, which is
marginally higher than the original impact between the two variable and average variations 0.0670
with t- statistics 6.747 and having significant value 0.0000.

Here the H3 is positively impacting in increasing Purchase Intention purchase Intention of OTT
services. While evaluating the relationship it shows positive impact of 0.2257. So, it depicts that for
every 10% increase in Quality of service i.e., 22.57% increase in Purchase Intention. Researcher
stimulates the boot strapping process with the sample, which indicates average of impact 0.2284,
which is marginally higher than the original impact between the two variable and average variations
0.0650 with t- statistics 3.4744 and having significant value 0.0003.

Here the H4 is positively impacting in increasing Purchase Intention purchase Intention of OTT
services. While evaluating the relationship it shows positive impact of 0.1322 So it depicts that for
every 10% increase in Quality of service i.e., 13.22% increase in Purchase Intention. Researcher
stimulates the boot strapping process with the sample, which indicatesaverage of impact 0.1339,
which is marginally higher than the original impact between the two variable and average variations
0.0449 with t- statistics 2.945 and having significant value 0.0016.

Here the H5 is positively impacting in increasing Purchase Intention of subscribing OTT platforms.
While evaluating the relationship it shows positive impact of 0.2507 So it depicts that for every 10%
increase in engagement i.e., 25.07% increase in Purchase Intention. Researcher stimulates the boot
strapping process with the sample, which indicates average of impact 0.2565, which is marginally
higher than the original impact between the two variable and average variations 0.0564 with t-
statistics 4.4454 and having significant value 0.0000.

R square and Adjusted Rsquare:

R square is coefficient of determination that indicates variance explained by independent variable on

dependent variable. Researcher has come across the data as mentioned in table- 6 which is explained
below.

Table
R square and Adjusted R square of all variables
Construct R Square R square Adjusted
PERCIEVED- 0.4204 0.4152
SATISFACTION
PURCHASE- 0.1983 0.1935
INTENTION
Indirect Effects Inference:
 Testing Research Hypothesis
Mean, S.T. Dev, t-Value, P-Values Percentile bootstrap
Standard bootstrap results quantile
Effects Origina Mea Standa T- P- p- 0.5 2.5 97.5
l n rd Val Val valu % % % 99.5
coeffici Val error ue ue e (1- %
ent ue ( 2- side
(Side d
d
CUSTOME 0.1372 0.138 0.0397 3.459 0.000 0.000 0.05 0.06 0.223 0.252
R- 3 2 5 3 45 93 1 6
ENGAGEM
ENT ->
PURCHASE
-
INTENTION
QUALITY- 0.0685 0.069 0.0232 2.955 0.03 0.00 0.01 0.02 0.118 0.134
SERVICE -> 2 2 1 16 90 86 3 0
PURCHASE
-
INTENTION
UTALITARI 0.0401 0.040 0.0159 2.525 0.01 0.00 0.00 0.01 0.074 0.086
AN -> 7 8 16 58 53 30 6 1
PURCHASE
-
INTENTION

Depicts the mediating impacts of the variables on the dependent variable. From the above table it is
clearly identifiable that Perceived Satisfaction have significant mediating effect between Customer
Engagement and Purchase Intension. Here, researcher has considered 340 size bootstrapping and the
original sample value (o) for the same path is 0.1372 for perceived satisfaction, the sample mean is
0.1383, which is quite close to the original value. These values depict that collected data
isappropriate. Similarly, Quality of service have significant mediating effect of 0.1322 and utilitarian
value have significant mediating effect of 0.2507, Moreover, all the mediating variables have t values
which are more than 1.96, which suggests that collected data is appropriate and there is a
considerable impact between two variables.

Measurement Model: reliability and validity 

Reliability 

In order to check the reliability, first step is to evaluate the internal consistency
of structured questionnaire by checking whether respondents understand the
meaning of the statements and they are consistent while responding to the
various statements.  

Reliability of the scales was checked with Cronbach’s alpha, a measure of

 Square root of AVE must be greater than construct inter co-relation with other factors. It means
individual construct showing the greater strength and co-related with another construct moderately.
Here in each case, Square root of AVE is greater than construct co-relation; consequently,
researcher did not violate the assumption of discriminant validity. Following table depicts the
square root values of AVE, which have been calculated and placeddiagonally.

Discriminant validity indicates how one variable is discriminated from the other variable.
Fornell- Larcker criterion shows inter latent variable correlation and acceptable cut of point of
the highest correlation between variables shown in the table 3. Diagonal values must be greater
than the corresponding row and column correlation value (Fronell&Larcker, 1981). Table 3
indicates that all the correlation values are less than respective diagonal values. Hence Fornell-
Larcker criterion concludes for excellent level of the discriminant validity for the model.

Table 04
Customer Engagement

Utilitarian Value

Hedonic Motivation

Purchase Intention
Perceived satisfaction

Quality service

Discriminant Validity: Fornell-Larcker Criterion

Table 05

Perceived
Satisfaction
Utilitarian Value

Hedonic Motivation
Perceived satisfaction

Purchase Intention
Quality service
Customer Engagement

Customer Engagement 0.7042

Quality Service
0.5218 0.4301

Utilitarian 0.4777 0.5264 0.3792

Hedonic Motivation0.6454 0.333

Perceived 0.7227 0.4765 0.4952
Satisfaction
0.3877
Purchase Intention 0.4478 0.5550 0.3213 0.4110
Customer Engagement 0.3529 0.6869

Quality Service
0.1861 0.1303 0.6480
Utilitarian 0.1695 0.2095 0.1034 0.6761
0.7262
Hedonic Motivation 0.0811 0.3851 0.1657 0.1897
0.1136 0.6861
Purchase Intention 0.1405 0.2248 0.0733 0.1293