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Consumer Behavior in Subscription to Media Content from Over-The-Top (OTT) Service

Author

Listed:
  • Tunsuparp, Supapong

    (Ramkhamhaeng University)

  • Phansatarn, Thanwar

    (Ramkhamhaeng University)

  • Srinuan, Chalita

    (King Mongkut's Institute of Technology Ladkrabang)

Abstract

Over-the-top (OTT) services for content programming are growing rapidly in Thailand. Services aregenerally provided in both paid and free ad-supported formats. This research examines the behavior of paying for additional OTT services for content programming. The analysis is divided into two steps: the decision-making process between paid and free formats and an analysis of factors affecting the paid service format. Heckman’s two-step estimation is used to solve the problem of systematically selected data, combined with data from a survey of OTT service users in Thailand, which was conducted by the National Broadcasting and Telecommunications Commission in 2019. The results show that several factors lead to a higher likelihood of choosing the free format. Additionally, some factors increase the likelihood of users paying less for the service. The study highlights the importance of non-tariff factors in the decision-making process of users, which can be used as a competitive tool by free ad-supported OTT service providers against paid service providers. Regulatory agencies can use the study's findings to monitor the competition in the OTT service market for content programming in Thailand.

Suggested Citation

  • Tunsuparp, Supapong & Phansatarn, Thanwar & Srinuan, Chalita, 2023. "Consumer Behavior in Subscription to Media Content from Over-The-Top (OTT) Service," Asian Journal of Applied Economics/ Applied Economics Journal, Kasetsart University, Faculty of Economics, Center for Applied Economic Research, vol. 30(1), pages 119-141, June.
    • Handle: RePEc:ris:apecjn:0083
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    More about this item

    Keywords

    Over-The-Top services; contents services; subscription payments;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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