The Return of the King: The Importance of Killer Content in a Competitive OTT Market

Abstract

As the over-the-top (OTT) service market continues to evolve, with new large global players entering the already crowded market, competition between various OTT services for subscribers has intensified. In this study, we aim to investigate the impact of user preference content on the selection of specific OTT services by consumers. Specifically, we employ the conjoint experiment (CE) method to examine consumer utility, relative importance, and marginal willingness to pay (MWTP) for over-the-top (OTT) subscription service attributes. Especially, the presence of users' killer content and its impact on MWTP is the focus of our study. As a result of calculating the MWTP for each attribute, we found that users are willing to pay about 7633 KRW (5.8 USD) for the first-ranked killer content in their first preferred genre. To gain a deeper understanding of users' willingness to pay for OTT services, we further analyzed the data by age group and the number of OTT services in use. Based on the results, we suggest strategic plans for local OTT operators to compete effectively in the fiercely competitive OTT market.