V3I3P93

Write Impact of Netflix Originals on Subscription Decisions among Youth Consumers in Bangalore City

Pallavi S^1*, Dharshan Maggavi¹

Abstract

In India, particularly within metropolitan areas, the emergence of OTT (Over the Top) Services has transformed the way people consume media, particularly for younger demographics, and Netflix has played a significant role in this transformation through the creation and investment in a vast catalogue of “Netflix Original Content”. The overarching strategy behind Netflix Originals – both internationally and also locally created Indian series – is to distinguish Netflix as a unique service provider, forge an emotional connection with viewers, and establish strong brand loyalty over time. In cities such as Bangalore City, where the majority of youth populations exhibit a high level of digital adoption and shifting viewing habits, Netflix Originals have quickly become an integral part of their binge-watching experience, and the topic of a great deal of social interaction, as well as influencing their selection of Service Provider. This paper explores how youth in Bangalore City make their Subscription decision and retain their Subscription to the service, based on their level of engagement with Netflix Original content.

The amount of existing research that can be used to support continued study in this area is extensive. For example, Panda and Pandey (2017) found that young adults binge-watch due to increasing access to multiple episodes at once, as well as because they can connect with the characters in an emotionally charged storyline. Kumar and Reddy (2021) provide three major characteristics that make an OTT platform desirable to young customers: Flexibility, Personalization, and Culturally appropriate content. Similarly, Smith and Telang (2022) state that Original Programming can significantly impact how consumers perceive the value of an OTT platform, which can reduce the likelihood that these customers will switch to competing platforms for the same content. Additionally, Chen et al. (2020) identified peer discussion and social context as influencing how likely someone will trial or subscribe to an OTT service immediately after trying it for the first time. Long-term subscriptions to the OTT service will depend on two main factors: the consumer’s sensitivity to price and the availability of other providers.

Based on these insights, our research employs a quantitative methodology to explore how Netflix Originals are shaping subscription choices among young adults aged 18 to 30 years old who reside in Bangalore City. This paper uses a survey with structured questions as the primary source of data, which we will analyze using descriptive statistics (means and standard deviations), Chi-square tests of independence, correlation coefficients, and regression analysis. It is clear from the analysis that although the fact that a large portion of Netflix users is engaged by Netflix Originals (and hence likely to subscribe), it has not necessarily led to an increase in the number of continued subscriptions of individuals who were initially interested in subscribing, even though they may have very good views of Netflix Originals. Several factors including economic factors, subscription sharing habits, and multiple OTT platforms provide some level of moderation to this topic of discussion. Based on these findings, we conclude Netflix Originals create substantial amounts of engagement and brand loyalty amongst younger generations yet their continued subscription behaviours are influenced by numerous variables, most notably, quality of content, social validation, and perceived value for money.

Keywords:

Netflix Originals; OTT platforms; Youth consumers; Subscription intention; Binge-watching behavior