Thanks in great part to industry growing digitalization, subscription-based services have been rather popular recently. The Over-The-Top (OTT) video streaming sector has seen explosive expansion as the market has evolved, which has increased competitiveness and created the necessity of efficient retention techniques to retain customers on the platform.Previous
studies have shown content to be one of the essential components for consumers and their cof new players that are adjusting to the subscription service business model and show the subscription service model economic impact and future significance in many different markets (Bischof et al, 2020,O er-the-top entertainment servicesFor companies who want to grow
their subscription-based business models, the evolving digital landscape offers fresh chances to build more custom-drawn classifiable as an accessible service (Carroni & Paolini, 2020, p. Through various networked devices, such laptops, tablets, and smartphones, over-the-top media services allow access to video or audio material that streams over internet bypassing the traditional providers cable, broadcast, and satellite TV platforms (Statista, 2023d)game for the first time in history in 1995, and in the late 2000s the technology became more accessible
The business exploded ervices was born
Companies applied the advertising-based business model in the early years of the OTT market, in which case the content was free and accessible to everyone paid by ads. Video streaming firms that had attached a lot of users converted to a subscription-based revenue model (Paytm, 2022) in line with the fast OTT video industry expansion. Customers of this business model must pay an ongoing cost for the period of their usage of the service,
therefore guaranteeing a continuous payment system (Paddle, n.d.).When a company has a consistent user base, historically a change from the advertising-based business model to subscription-based business model has demonstrated to be the general right path of action for OTT services (Carroni & Paolini, 2020, p. 5).Emphasizing the benefits of the subreption-based business model used in the OTT video industry is Carroni & Paolini (2020, p. 5), which
produces a more consistent and predictable revenue stream. Customer retention and customer satisfaction seem to be two factors explaining the benefit of the change of business strategy as they are clearly more central.Customized experiences created by automated buying allow subscription services to be a handy approach for providing real advantages from company to consumer. Along with the number of subscription service providers, demand for
These services has lately increased
(Chen et al., 2018). Although new categories among subscription services have evolved in recent years, shifting from a product delivery-centered strategy to new forms of services using the digital environment, subscription services might in theory be adjusted virtually any industry (Kim & Kim, 2020, p. 2).Four categories define the most often mentioned subscription
services in literature on the topic: software, subscription boxes, e-commerce, and accessibility services (Andonova et al., 2021., Carroni & Paolini, 2020., Ramkumar & Woo, 2018., Kim & Kim, 2020). Usually behind a paywall, software subscription services offer one product for continuous or licensed use to its paying customers (Paddle, n.d). It could be software
subscriptions for Microsoft Office (Microsoft, 2023) or Adobe (Adobe, 2023). Mailed to the customer, subscription boxes are packages loaded with surprise goods or bespoke products (Andonova et al., 2021, p. 631). Subscription boxes might be Hellofresh, a meal-kit startup (Hellofresh, 2020), or Glossybox and Snip, which monthly provide beauty-related products to its customers.Usually, subscribers of subscription boxes can find them online; yet, all e-
Commerce subscriptions are not subscription
boxes. One instance of this is the company Estrid, which provides refill subscriptions on razorblades to its consumers on a regular basis (E-commerce subscriptions, n.d.). This entails other kinds of deliveries including recurring mass deliveries or single products to their consumers.Another kind of subscription service that might be considered as a mix of software and e-commerce kind ones are accessibility services. Accessible services include Spotify or
Netflix (Paddle, n.d.) that provide their customers access to goods or material.Depending on the subscription program, customers get a range of services within these categories, usually paid for once a month, once a quarter, once year. The services offered under these four categories vary and could be anything from streaming services, refills of certain products or offering consumers new, personalized products (Paddle, n.d). More businesses are using the
subscription service model, hence it is important to know consumer preferences for particular characteristics connected to subscription-based video streaming services. We have as our suggested research question By concentrating on particular business model components instead of platform related content, OTT video subscription services can help to boost customer retention.The study finds three primary elements in the company model, each of
Conclusion
which relate to particular characteristics outside content influence customer happiness and retention. Consumers ranked the components in the following sequence of significance pricing, user experience, and customer service. Moreover, some characteristics such as providing several subscription plans, loyalty programs, and functionally built platforms were found to be appealing and one-dimensional, thereby showing their great influence on
customer satisfaction. Although content is still crucial, the results show the importance of giving these particular quality qualities top priority and developing plans for them since they will help raise consumer satisfaction and affect client retention.elements in the subscription-based business model than advertising-based business model (Anderson et al, 2015, p. 254). The study by Anderson et al. (2015, p. 255) examine differences between advertising and
subscription-based business model, establish in the findings that customer retention and customer satisfaction promote a predictable and constant revenue stream which is advantageous as it facilitates financial planning. Moreover, a combination of these two business models is possible. Video streaming services that use the freemium model are offering customers a subscription plan or inplatform purchases to get access to premium or
exclusive content, while also offering free content on their platform with adverts. By offering both free and premium subscription options, streaming services have been able to attract a large user base and successfully convert them into paying customers (Arkenberg, 2021c). Nevertheless, the research by Carroni and Paolini (2015, p.10) identify a significant correlation of improved customer satisfaction and the shift from an advertising-based
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