OTT Market Dynamics: Understanding Consumer Behaviour and Pricing in Emerging Economies
Sridevi M
*
Department of Management Studies, Periyar University, Salem (TN) – 636011, India.
T. Sarathy
Department of Management Studies, Periyar University, Salem (TN) – 636011, India.
*Author to whom correspondence should be addressed.
Abstract
Aims: This study examines how pricing strategies, content preferences, and socio-economic and cultural factors influence consumer adoption, retention, and willingness to pay for over-the-top (OTT) platforms in emerging economies.
Study Design: A descriptive, cross-sectional design with survey methodology and quantitative analysis was adopted.
Place and Duration of Study: Research was conducted across three emerging economies—India, Brazil, and Indonesia—between January and June 2024.
Methodology: A structured online survey of 1,200 active OTT users was analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) and Latent Class Analysis (LCA) to validate constructs, test hypotheses, and identify consumer segments.
Results: Pricing flexibility and cultural relevance in content were the strongest drivers of adoption and retention, moderated by socio-economic and socio-cultural variables. Three segments were identified: price-sensitive youth, mid-income professionals, and high-income early adopters.
Conclusion: The study addresses a significant research gap by integrating pricing strategy, content preference, and socio-cultural context—areas rarely examined collectively in emerging digital economies. The findings, grounded in the Expectancy-Value Theory and Unified Theory of Acceptance and Use of Technology (UTAUT), highlight that hybrid pricing models and culturally resonant content are essential for sustained engagement and monetisation. Segment-specific strategies that balance affordability with content value are critical for long-term growth in resource-constrained markets.
Keywords: OTT platforms, emerging economies, consumer behaviour, pricing strategy, freemium models, subscription models, cultural relevance, market segmentation