To analyse the impact of OTT platforms during the

COVID-19 pandemic on the consumer’s online buying

behaviour of new television

Consumer Behaviour
Submitted to: Prof. Devashish Dasgupta

GROUP 8

Aayushi Garg (PGP36001)

Divya Nakra (PGP36262)
Nikita Balaji (PGP36430)
Soukhya Rawool (PGP36195)
Tamishra Ray (PGP36240)

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 TABLE OF CONTENTS

1. Introduction.…………………………………………………………….…………3
2. Research Methodology ....……………………………………………….………...4
3. Research Insights and In-depth Analysis .......………………………….…………5
a. Effect of OTT platforms on the consumer’s purchase of new television
during the pandemic.………………………………….…………………….5
b. Effect of lifestyle on moderating consumer purchase of television during
the pandemic ...……………………………………………...……………...7
c. Impact of demographic variables on consumer purchase of television during
the pandemic for watching OTT platforms ...………………………............9
d. Some additional insights…………………………………………………19
4. Discussion and Conclusion ......………………………………………….............21
5. References ...……………………………………………………………………22

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 Introduction
The COVID-19 pandemic and the subsequent lockdowns imposed across countries in the world has
changed all aspects of our lifestyles, with everything from studying to working shifting online. Two
changes have been observed in the behaviour of consumers around the world, which form the basis of
this research. The first major shift has been seen in the buying behaviour of consumers. Since offline
shopping was not a feasible option, most consumers shifted to online buying and exhibited behaviour
that they may not have done otherwise. The second shift has been the increased use of OTT platforms
for viewing content. Since consumers have been confined at home for large periods of time, OTT
platforms have risen in popularity as boredom busters and a way for individuals to entertain
themselves.

The rise of OTT content consumption, observed to an extent before the pandemic as well, also
prompted the advent of ‘smart televisions’ with the option to connect to the internet and pre-
downloaded OTT platform apps like Netflix and Prime Video. (add stats?) Audiences are increasingly
preferring to watch their OTT content on television screens as well owing to larger screens and better
quality.

The question before us is: has the rise in OTT viewership during the pandemic also led to an increase
in the purchase of televisions? We attempt to answer this question first by attempting to identify the
profile of consumers who prefer to watch OTT platforms on televisions, understanding the
characteristics of such a consumer group, and linking their purchasing behaviour to these
characteristics in order to understand whether a correlation exists. Such characteristics would also
include the preferred OTT platforms of the consumer. This will help us derive insights into what leads
to the rise in buying of televisions and draw relevant conclusions. The three major objectives laid out
in line with the above are:

1. To understand how OTT platforms affect the consumer's purchase of new television during
the pandemic
2. To understand how lifestyle moderates consumer purchase of television during the pandemic
3. To understand how various demographic variables moderate the consumers purchase of
television during the pandemic for watching OTT platforms

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 Research Methodology

The first step in this research was primary research. Data collection was carried out using a survey
with questions regarding the preference for OTT platforms and the feelings around the activity,
especially during the COVID-19 period. Questions were also included on whether the user would
prefer to watch OTT content on television or other devices, and if that would influence the buying
decision of television. Other demographic and lifestyle factors were also captured through this survey
to understand the activities of the respondents throughout the pandemic and lockdown as well as their
mindset. Questions have also been included to understand the level of influence the respondent has on
people around them as well as the opinion of others around them and how that impacts their thinking.
Different question formats like Likert scales and multiple-choice questions have been utilised in the
survey to gauge the consumer’s preferences as accurately as possible.
This survey was filled by over 200 respondents from different segments in terms of age, gender,
occupation, and income levels in order to get a holistic sample and better understand the preferences
and behaviour of consumers.
The data collected was analysed using excel in order to derive the important and relevant insights in
line with the objectives of the project.
Apart from the primary data collection and subsequent analysis, certain secondary sources have also
been used to supplement these findings. In particular, existing literature related to this topic has been
studied in order to get a deeper understanding of the findings and come up with better insights, findings,
and recommendations.

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 Research Insights and In-Depth Analysis

Using the data collected from over 200 respondents through our primary research, we carried out
certain analyses and the findings are mentioned below. We tried to keep a special focus on the three
objectives laid out and understand the buying behaviour and preferences of the consumer and its
correlation with their OTT preferences, if any.

Objective 1:
To understand how OTT platforms affect the consumer's purchase of new
television during the pandemic
For this objective, the aim is to find out whether the consumer’s OTT preferences affected their
decision to buy a new television during the pandemic. The factors looked at here are the preferences
of the respondent with respect to the consumption of OTT content, i.e. whether or not the respondent
is actually a user of OTT. This has been then linked to whether or not the respondent has actually
purchased a television in order to understand the correlation, if any exists.
The graph obtained for the above is shown:

Purchased a TV? User of OTT?

Figure 1: Percentage of OTT viewers who have purchased a TV

Looking at this information, there is no clear correlation between the usage of OTT and the purchase
of a television.
However, looking purely at the data of OTT viewers, we can infer that if a consumer is a user of OTT
platforms and usually prefers to watch OTT content on televisions, he or she is more likely to purchase
a new television. This can be observed clearly with the graph given below, wherein consumers
preferring TV as a medium of watching OTT preferred to buy a new set during the pandemic. This can

5
be linked to the advent and rising popularity of the aforementioned Smart TVs. Consumers who owned
traditional TV sets and started watching more of OTT content during the pandemic may now have
started preferring watching their content on bigger screens with better clarity and quality which could
have led to this preference.

Purchased a TV?

Figure 2

Subsequently, the data for OTT platform preferences was also studied in order to understand whether
or not that was a factor affecting buying preferences. The graph for the same is as shown below:

Purchased a TV?

Figure 3
A preliminary view of this graph may suggest that viewers of Netflix were more inclined towards
purchase. However, an overall study of the data collected shows that Netflix was the most popular

6
OTT platform of choice for the respondents. Hence, it can be concluded that the preference of OTT
platform did not contribute to the purchase decision.
However, as a corollary, television companies must note the popularity of such platforms and aim to
offer access to these platforms accordingly through their Smart TVs in order to ensure consumers
prefer their brand.

Objective 2: To understand how lifestyle moderates consumer purchase of

television during the pandemic
Behavioral changes and habit formation post COVID-19:
Consumer behaviour is rapidly evolving as the world adjusts to a new normal, where social
distancing, work from home and virtual meetings are the norm. Demand for at-home digital media
is growing significantly, as habit-formation and ease of access emerge as drivers. OTT platforms
and digital media have been attracting new consumers and expanding to new locations and
demographics. The virus outbreak will magnify the already apparent shift from laptop/digital devices
viewing to large screen TVs.
To consume content via OTT medium, it is imperative for the consumer to have access to an internet
enabled device like a Smart TV, Mobile phone, Laptop or a Tablet. Owing to the basic need for
technology access, younger generation is much more comfortable interacting with OTT platforms but
post COVID the read and adoption has increased manifolds. The BCG report ‘Entertainment Goes
Online' - suggests that OTT consumers can be classified under three main categories:
· Traditionalists – who primarily consume on other than OTT platforms
· OTT Experimenter – who have significant consumption on both conventional and OTT platforms
· Early Adopter – whose primary consumption occurs on OTT platforms. While early adopters are
still a more urban phenomenon, going forward it will be more equally distributed.
Impact of COVID on TV viewership, including OTT
If 80s was an era of DoorDarshan and 90s dominated by private broadcasters, media and
entertainment gurus predicted that 2000s will be an era dominated by technology enabled
entertainment beyond TV screens – there will be greater uptake for ‘content of demand’ and by that
we don’t just mean the genre and nature of content but the choice of time, place and device as well.
OTTs are not limited to audio visual content, the audio only market makes for a significant share of
this market. While platforms like StoryTel and Audible are gaining popularity, innovative offerings
like Graphy (by homegrown edtech soonicorn Unacademy) are still to be categorised as OTTs.
Needless to say, this space is buzzing for numerous innovative solutions and offerings consistently.
Players are leaving no stone unturned to catch attention of the consumer, grow their user base and
retain each user for a longer duration than before.

7
It is seen that uptake for OTT has gone up considerably owing to COVID lockdown in India. This
change in consumer behaviour is interesting to observe and evaluate as there are numerous layers in
this consumption pattern which need to be unravelled and understood from various angles and point
of views. Aspects like nature of content being consumed, timings for different genres of
consumption, consumer age and commensurate content consumption, TV channels v/s OTT
providers, impact of the medium on advertising patterns, innovative deals and discount packaging
and much more. This study aims to specifically review consumer consumption trends and look at
certain milestones and highlights which become the poster boy of OTT platform adoption/ success
during the COVID-19 pandemic on the consumer’s online buying behaviour of new television.

Figure 4
According to our primary research, Sony, OnePlus and Samsung are the top three brands from which
customers are purchasing TV. We have noticed the following behavioral patterns in the buying
patterns with these 3 brands:
• Customers who are used to buying and using multiple electronic devices/ gadgets prefer One
Plus as their go to brand
• Customers taking a decision based on advertisements chose the Samsung brand
• Customers cautious about their status symbol chose Sony to buy a television

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 4.3
4.2
4.1
4
3.9
3.8
3.7
3.6
3.5
3.4
I wish for a trendy, Information in advertising I often buy imported
fashionable, and leisure plays a very important role gadgets and electronic
lifestyle in my purchasing decisions devices

Sony One Plus Samsung

Figure 5

Objective 3: Impact of age and gender on consumer purchase of television during

the pandemic for watching OTT platforms
On the basis of the primary survey, we have tried to understand trends towards OTT viewership. We
have conducted an in-depth analysis of the data to evaluate the significance of various demographic
variables like age, gender, income, education etc. on OTT consumption and the decision to purchase
television by consumers. We thereby aim to gather valuable insights to develop the segmentation and
targeting model for devising strategies to promote sale of televisions.
We have surveyed a sample of around 200 respondents and evaluated this sample for the purpose of
this study.
We have studied the impact of the following demographic variables:
1. Gender
2. Age
3. Occupation
4. Education
5. Location (place of residence)
6. Income Level

I) Impact of Gender
• As demonstrated below the percentage of males and females using OTT platforms was greater
than 90%

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 • Similarly, 81% of both males and females did not purchase a new television during the
pandemic
Conclusion: Basis this survey, we can conclude that there is no correlation between gender of the
respondents and their OTT consumption as well as purchase of television.
Inference: Gender based Segmentation may not be effective in promoting TV Sales or OTT
consumption and other factors should be looked at to develop marketing and communication
strategies.

Male Female
94%

93%

81%

81%
OTT USER DID NOT PURCHASE NEW TV

Figure 6

II) Impact of Age

Note: The data for age group from 36 to 45 years and above has been excluded for this analysis as it
was inconclusive due to less number of respondents

• We can clearly see that the audience in the age group of 21-25 years grabs the highest share
of OTT consumption at 95%. This age group also has the highest percentage of buying new
television at 20%.
• Consuming OTT content for entertainment is becoming a prime trait of the GenZ culture
• For people below 20 years, the percentage using OTT platforms is the lowest at 75%. This
might be because of kids and teenagers included in the survey who have lesser time for
watching OTT due to study commitments and parental restrictions. This age group also has
the lowest percentage of TV buyers at 13%.

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Conclusion: 21- 25 years age group ranks highest in both OTT consumption and TV purchase. Thus,
there seems to be a correlation between age group and their OTT consumption as well as purchase of
television.
Inference: Age based segmentation might prove to be effective in promoting OTT consumption and
purchase of television. The people between the age group 21-25 years must be targeted.

OTT USER PURCHASED NEW TV

OTT user Purchased New TV
95%

91%

88%

20%
75%

16%
13%

13%
20 YEARS 21 - 25 26 - 30 31 - 35 20 YEARS & 21 - 25 26 - 30 31- 35
& BELOW YEARS YEARS YEARS BELOW YEARS YEARS YEARS

Figure 7a Figure 7b
III) Impact of Occupation
On OTT consumption:
• 95% employees and students report to being the users of OTT platforms
• Employees prefer to watch OTT during their free time as it serves as an escape from their
hectic lifestyle and they also have the purchasing power to subscribe to various platforms
• Students indulge in OTT due to the higher digital media consumption. Post-covid, binge-
watching culture among the GenZ has only enhanced
On purchase of TV:
• There seems to be no significant correlation between occupation and purchase of TV
• Thus, we conclude that the differences may be attributed to other factors

Conclusion: There seems to be a correlation between occupation and OTT consumption, however,
no correlation could be established between occupation and purchase of television.

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Inference: Students and employees can be targeted by OTT platforms for driving increased adoption
and more usage, however, there seems to be less effect of occupation on the TV purchase decision.

OTT USER
OTT user
95%

95%
78%
75%

EMPLOYEE ENTREPRENEUR FREELANCER STUDENT

Figure 8a

PURCHASED A TV
Purchased a TV
22%
20%

18%
13%

EMPLOYEE ENTREPRENEUR FREELANCER STUDENT

Figure 8b

IV) Impact of Education

On OTT Consumption:

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 • In general, respondents with high school & above education show high OTT consumption
• Youngsters favour OTT platforms for the kind of content they offer
• The younger kids and teenagers devote lesser time to OTT due to academic commitments and
restrictions from parents
• PhD students’ percentage is on the lower side due to the rigour that the course demands and
the limited free time they get

OTT consumption
PHD 60%

HIGH SCHOOL 100%

POST-GRADUATE 93%

C.A 100%

GRADUATE 96%

B-ED 100%

0% 20% 40% 60% 80% 100% 120%

OTT consumption

Figure 9
Education vs mode of watching
• Graduates and Post graduates formed majority users (~90%) of Smartphones and Laptops for
OTT consumption
• Also from the reverse lens, laptop and smartphones was the most preferred mode of OTT
consumption for graduates and postgraduates
• The students carry laptops almost all the time, especially during Covid, so they prefer to
watch OTT while taking short breaks. Also, smartphones is the second most convenient mode
for students as they can be used while travelling in metros, buses etc. and can also be used
while relaxing on couch

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 LAPTOP SMARTPHONES
C… B.ed
2%
Graduat
e
Post
38%
Post Graduate Graduate
Graduat 48% 48%
e
56% High
Ph.D/FP
School…
PhD M
4% 2%

Figure 10a Figure 10b

Preferred mode of OTT consumption

IPAD 4%
2%

COMPUTERS 2%
6%

TV 16%
20%

SMARTPHONES 26%
30%

LAPTOP 52%
42%

0% 10% 20% 30% 40% 50% 60%

Post Graduate Graduate

Figure 11

On TV purchase
• Total 19% of the respondents purchased a new television during pandemic.
• The entity of this TV purchasing group consisted of graduates and post-graduates
• The overall low TV purchasing percentage can be attributed to the fact that the students
prefer laptops and smartphones over television

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 Purchased a TV
PHD 0

HIGH SCHOOL 0

POST-GRADUATE 20%

C.A 0

GRADUATE 19%

B-ED 0

0 0.05 0.1 0.15 0.2 0.25

Purchased a TV

Figure 12

Purchased TV

B-Ed Graduate C.A Post-Graduate High School PhD

Figure 13
Conclusion: There seems to be a high correlation between education and OTT consumption for
people with high school and above education.
Inference: Students can be targeted by OTT platforms for driving increased adoption and more
usage, however, there seems to be less purchase of television by this category as they prefer laptops
and smartphones over television.

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V) Impact of Location
• Metro and Tier 1 cities had a significant % of respondents purchasing a new television during
pandemic (as shown in the below graph)
• Other cities had insignificant number of people purchasing a television
• Due to the lockdown, families were restricted to homes and thus, they resorted to television
as the major in-home entertainment provider and also to spend quality free time with their
families

Purchased TV
PUNE 40%
MUMBAI 24%
LUCKNOW 14%
KOLKATA 17%
NEW DELHI 29%
CHENNAI 33%
AHMEDABAD 50%

0% 10% 20% 30% 40% 50% 60%

Purchased TV

Figure 14

Conclusion: There seems to be a high correlation between people living in metro cities and purchase
of television
Inference: Location based Segmentation may be effective in promoting TV Sales or OTT consumption
and other factors should be looked at to develop marketing and communication strategies for non-
metro and tier 2 & 3 cities

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VI) Impact of Income
• People from all levels of income show high OTT percentage usage
• Thus, we conclude that the differences may be attributed to other factors

I NCO ME LE VE L V/S T V I NCO ME LE VE L V/S OT T USAG E

PURCHA SE OTT User
OTT User

100%
33%

95%

91%

83%

83%
25%
20%

17%
9%

6 LAC - 16 LAC - 26 LAC - 36 LAC - 46 LAC 6 LAC - 16 LAC - 26 LAC - 36 LAC - 46 LAC
15 LAC 25 LAC 35 LAC 45 LAC AND 15 LAC 25 LAC 35 LAC 45 LAC AND
ABOVE ABOVE

Figure 15a Figure 15b

• Additionally, an important observation is consistent across the two income categories (6-15L
& 16-25L): they are watching OTT but not purchasing TV
• This is because if we see their preferred mode of OTT consumption, it is dominated by
laptops followed by smartphones
• They prefer watching OTT on laptops while taking breaks from work as it provides big
screen entertainment and also prefer smartphones as they are more convenient and can be
used for watching while travelling.

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 Preferred mode of OTT consumption

TV

Smartphones

Laptop

iPad

Computers

0% 10% 20% 30% 40% 50% 60%

6 lac - 15 lac 16 lac - 25 lac

Figure 16

Conclusion: People across all income groups seem to consume OTT content
Inference: Thus, income level segmentation may prove to be ineffective for promoting TV Sales or
OTT consumption and other factors should be looked at to develop marketing and communication
strategies

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Some additional Insights:

1. Most preferred content:

• Following pie chart shows the most preferred content on OTT channels by the consumers.
• We can clearly see that web series rules with the highest percentage of 48% followed by
movies
• As expected, news content has no preference for people on OTT platforms

Figure 17

2. Top preferred OTT platforms

The top 3 OTT platforms are as follows:
• Netflix – 59.3%
• Amazon Prime – 24.5%
• Disney Hotstar – 9.8%

Figure 18
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3. Most preferred mode of watching OTT platforms
The top 3 preferred mode of watching OTT platforms are as follows:
• Laptop – 48%
• Smartphones – 28%
• TV – 17%

Figure 19

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 Discussion and Conclusion

The OTT platforms are presenting a major threat to the traditional content platforms like television.
However, for a country like India, both TV and OTT can thrive together as they feature content for
different segments. However, the traditional platforms need to innovate to catch up with OTT.
The advent of OTT would not kill TV, just like the Walkman couldn’t kill radio. The personalization
and convenience of watching at one’s own pace is what differentiates OTT. The content on TV needs
to evolve as audiences continuously compare it with digital content. However, TV is here to stay as
people still prefer watching content on big screens. The live news and sports events give an
advantage to television.
The way people are consuming content is changing. TVs need to offer immersive experiences like
OTT platforms. Streaming OTT is increasingly becoming possible through smart TVs and devices
like Amazon firestick. This comes as a saviour for both OTT platforms and televisions. Television
shall continue to thrive in the longer run due to its strong monetization engine and the transparency
that it offers in terms of measurement of advertisement watch time.

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 References
• https://www.google.co.in/amp/s/www.entrepreneur.com/amphtml/361959
• https://journals.sagepub.com/doi/full/10.1177/0972262921989118
• https://indianexpress.com/article/technology/tech-news-technology/over-70-users-in-india-
spend-up-to-four-hours-watching-ott-content-on-smart-tv-7496674/

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