Estimating Subscribers' Willingness to Pay for OTT Media Streaming Services using Van Westendorp Model
Authors/Creators
- 1. School of Management, SASTRA Deemed University, Thanjavur, India
Description
Abstract: Over-The-Top (OTT) media streaming services being new age digital entertainment option, have seen a surge in the acquisition of consumers in the recent times. However, there exists a noticeable difference in the pricing strategies among different OTT services in the Indian media & entertainment market. This paper aims to provide an input for the market players by estimating the Willingness to Pay (WTP) among the subscribers of the OTT platforms. Utilising the Van Westendorp price sensitivity model, the research has examined the price points at which consumers are inclined and prepared to pay for OTT content subscriptions. The primary objective of this study is to gauge the optimal price points and acceptable price range, deploying the model. A thorough analysis has been carried out, encompassing 495 responses, to compute the price points for annual and quarterly subscription plans. The optimum price point for the annual subscription plan was found to be Rs. 1100, and for the quarterly subscription plan, it was found to be Rs. 410. Relevant implications and suggestions are discussed.
Keywords: OTT Services, Price Sensitivity, WTP
JEL Classification Number: D490, M29