An Investigation of the Effects of Over-the-Top (OTT) Services on Subscription Television Providers in South Africa

Abstract

This study examines the growing shift in consumer behavior from traditional television to Over-the-Top (OTT) streaming platforms in South Africa. With the rapid adoption of digital technologies, OTT services such as Netflix, Showmax, and DStv Stream have become increasingly popular, especially among younger, tech-savvy, and educated individuals. The study employed a quantitative approach using a Stratified Random Sampling method. Data were collected from 264 respondents out of 303 distributed surveys, achieving an 87.13% response rate. The survey explored factors influencing OTT adoption, including age, gender, educational level, and regional distribution. The findings revealed that OTT platforms, particularly Netflix, are most favoured by individuals aged 25-44, with Netflix being the dominant service across all age groups. Additionally, education levels were positively correlated with OTT adoption, with higher education linked to increased usage of OTT platforms. DStv remained the most popular traditional TV service, but its appeal is waning in comparison to OTT services. This study further explored the motivations behind consumers’ choices, including content relevance, pricing, and the perceived benefits of flexibility and convenience offered by OTT platforms. The findings provide valuable insights into consumer preferences in the South African media landscape and offer recommendations for businesses looking to capitalise on the growing OTT market. The findings of this study indicate that OTT platforms are rapidly transforming the television industry, necessitating strategic adaptations from traditional TV providers. Based on these findings, the study recommends that to remain competitive, industry leaders must embrace digital transformation, invest in personalised content experiences, explore innovative monetisation models, and leverage social influence for customer acquisition and retention with an emphasis on digital literacy and regional expansion, particularly in Gauteng, where OTT services are most widely adopted.