TITLE: AN INVESTIGATION OF EFFECTS OF OVER-THE-TOP ON 

SUBSCRIPTION TELEVISION PROVIDERS IN SOUTH AFRICA. 

 

VUYANI LUKHELE 

(0404667D) 

UNIVERSITY OF THE WITWATERSRAND 

JOHANNESBURG, SOUTH AFRICA. 

 

SUPERVISOR: PROF STEWART PETER KAUPA 

 

 

 

JANUARY 2025 

  



DECLARATION 

I, Vuyani Lukhele, hereby declare that this dissertation represents my original work and has 

not been previously submitted, in whole or in part, for any degree at this or any other university.  

 

________________                                                 17 February 2025    

V. Lukhele                                                                Date 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



ii 
 

DEDICATION 

This research is dedicated to the memory of my beloved mother, Sibongile Rose Hleza, who 

passed away on September 30, 2019. My mother was a constant source of support and 

inspiration throughout my life. While I deeply regret that she cannot witness this milestone, I 

know that she would be immensely proud. I cherish the unwavering love and countless 

sacrifices she made for me. May her memory forever be a source of strength and motivation. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



iii 
 

ACKNOWLEDGEMENTS 

A few months ago, it was announced that I would be completing my Master in Digital 

Transformation at Wits Business School. Throughout this journey, my team has surrounded 

me with love, appreciation, encouragement, and well wishes, for which I am deeply grateful. 

As I conclude this chapter, there are so many people to thank, but I want to express my most 

profound gratitude to our CTO, Sabelo Mwali. He has been an exceptional mentor, one who 

truly believes in the power of hard work and dedication. Over the course of this experience, I 

have grown both personally and professionally, and it has been an honour to work alongside 

him at the leadership table in our shared mission to drive the growth of our division. Thank 

you, Sabelo. 

I also want to extend my sincere thanks to my supervisor, Prof. Stewart Peter Kaupa, for his 

guidance and motivation throughout my studies. 

Lastly, I am incredibly grateful to my wife, Athabile Lukhele, for being my unwavering support 

and the best companion on this career journey. She and our daughter, Mbalenhle Lukhele, are 

my biggest cheerleaders, and I couldn’t have done this without them. Thank you both for 

everything. 

 

 

 

 

 

 

 

 

 

 

 



iv 
 

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. 

Keywords: Over The Top (OTT), Traditional Television, Consumer Behavior, Digital 

Technologies, Marketing Strategies, South Africa. 

 

 



v 
 

 

Contents 
DECLARATION ..................................................................................................................................... i 

DEDICATION ........................................................................................................................................ ii 

ACKNOWLEDGEMENTS ................................................................................................................... iii 

ABSTRACT ................................................................................................................................... iv 

LIST OF ACRONYMS ................................................................................................................ xii 

CHAPTER  1. INTRODUCTION AND BACKGROUND OF THE STUDY................................... 1 

1.1 INTRODUCTION .................................................................................................................. 1 

1.2 BACKGROUND OF THE STUDY ....................................................................................... 1 

1.3 PROBLEM STATEMENT ..................................................................................................... 4 

1.4 AIM OF THE STUDY:........................................................................................................... 4 

1.5 RESEARCH OBJECTIVES: .................................................................................................. 5 

1.6 RESEARCH QUESTIONS..................................................................................................... 5 

1.7 SIGNIFICANCE OF THE STUDY: ....................................................................................... 5 

1.8 LIMITATIONS OF THE STUDY .......................................................................................... 6 

1.9 DELIMITATION OF THE STUDY ....................................................................................... 6 

1.10 CONCLUSION ....................................................................................................................... 6 

CHAPTER  2. LITERATURE REVIEW ........................................................................................... 7 

2.1 INTRODUCTION .................................................................................................................. 7 

2.2 LITERATURE REVIEW SCOPE .......................................................................................... 7 

2.3 EASE OF USE OF OTT PLATFORMS ................................................................................. 8 

2.3.1 Overview of OTT platforms and their evolution ............................................................ 8 

2.3.2 Ease of use as a Key factor ............................................................................................. 9 

2.3.3 Consumer Perception of Benefits ................................................................................. 10 

2.3.4 Behavioural Drivers for Switching ............................................................................... 11 

2.3.5 Barriers to Switching .................................................................................................... 12 

2.3.6 Impact of External Factors ............................................................................................ 13 

2.4 CUSTOMERS FIND OTT SERVICES ................................................................................ 14 

2.4.1 OTT Market Overview in South Africa ........................................................................ 14 

2.4.2 Content Relevance ........................................................................................................ 15 

2.4.3 Content Quality ............................................................................................................. 16 

2.4.4 Consumer Perceptions of Usefulness ............................................................................ 16 

2.4.5 Impact of Internet Connectivity and Affordability ....................................................... 17 

2.4.6 Comparison with Traditional TV in South Africa ........................................................ 18 

2.5 UNDERSTANDING HOW USEFUL CUSTOMERS FIND OTT SERVICES .................. 20 

2.5.1 Overview of OTT content offering in South Africa ...................................................... 20 

2.5.2 Consumer expectations and preference ......................................................................... 22 



vi 
 

2.5.3 Perception of content quality ........................................................................................ 23 

2.5.4 Accessibility and Affordability of content .................................................................... 23 

2.6 RELATIONSHIP BETWEEN SOCIAL INFLUENCE AND THE BEHAVIOURAL 
INTENTION ..................................................................................................................................... 24 

2.6.1 Theoretical Frameworks ............................................................................................... 24 

2.6.2 Social influence and consumer perception .................................................................... 26 

2.6.3 Comparative analysis OTT vs Traditional television. ................................................... 27 

2.6.4 Role of Social media and digital communities ............................................................. 29 

2.7 CONCEPTUAL FRAMEWORK ......................................................................................... 30 

2.8 CONCLUSION ..................................................................................................................... 32 

CHAPTER  3. RESEARCH METHODOLOGY .............................................................................. 33 

3.1 INTRODUCTION ................................................................................................................ 33 

3.2 RESEARCH DESIGN .......................................................................................................... 33 

3.3 RESEARCH APPROACH ................................................................................................... 34 

3.3.1 Qualitative research....................................................................................................... 34 

3.3.2 Quantitative research ..................................................................................................... 34 

3.3.3 Mixed-model research ................................................................................................... 35 

3.4 RESEARCH PHILOSOPHY ................................................................................................ 35 

3.4.1 Epistemology ................................................................................................................ 36 

3.4.2 Interpretivism ................................................................................................................ 36 

3.4.3 Ontology ....................................................................................................................... 37 

3.4.4 Positivism ...................................................................................................................... 37 

3.4.5 Axiology ....................................................................................................................... 37 

3.4.6 Realism ......................................................................................................................... 38 

3.5 RESEARCH STRATEGY .................................................................................................... 38 

3.6 TARGET POPULATION AND SAMPLING ...................................................................... 40 

3.6.1 Sampling strategy .......................................................................................................... 40 

3.6.2 Kinds of Sampling ........................................................................................................ 40 

3.7 DATA COLLECTION ......................................................................................................... 41 

3.7.1 Construction of Questionnaire ...................................................................................... 42 

3.8 DATA ANALYSIS ............................................................................................................... 43 

3.9 PILOT STUDY ..................................................................................................................... 44 

3.9.1 Feedback related to data ................................................................................................ 44 

3.10 DATA VALIDITY ............................................................................................................... 44 

3.11 DATA RELIABILITY .......................................................................................................... 45 

3.12 ETHICAL CONSIDERATIONS .......................................................................................... 45 

3.12.1 Consent from participants ............................................................................................. 46 

3.12.2 Ensuring confidentiality and anonymity ....................................................................... 46 

3.12.3 Ensuring no harm comes to participants. ...................................................................... 46 

3.12.4 Ensuring that permission is obtained. ........................................................................... 47 



vii 
 

3.13 CONCLUSION ..................................................................................................................... 47 

CHAPTER  4. DATA ANALYSIS AND PRESENTATION OF RESULTS .................................. 48 

4.1 INTRODUCTION ................................................................................................................ 48 

4.2 DATA ANALYSIS AND FINDING .................................................................................... 48 

4.2.1 Respondents Characteristics ......................................................................................... 48 

4.3 DESCRIPTIVE DATA ......................................................................................................... 53 

4.3.1 Descriptive Statistics for OTTE Construct ................................................................... 54 

4.3.2 Descriptive Statistics for OTTS Construct .................................................................... 54 

4.3.3 Descriptive Statistics for OTTC Construct ................................................................... 55 

4.3.4 Descriptive Statistics for OTTI Construct ..................................................................... 55 

4.4 RELIABILITY OF RESULTS .............................................................................................. 56 

4.4.1 OTT Ease of use compared to TV  (OTTE Construct) ................................................. 56 

4.4.2 Social influence to adopting OTT (OTTS) ................................................................... 57 

4.4.3 Content quality comparison to traditional TV (OTTC) ................................................ 58 

4.4.4 Social influence to switch from TV to OTT platforms (OTTI Construct) .................... 59 

4.5 FACTOR ANALYSIS .......................................................................................................... 59 

4.5.1 Correlation and Regression Analysis ............................................................................. 63 

4.6 CONCLUSION ..................................................................................................................... 69 

CHAPTER  5. KEY FINDINGS FROM THE STUDY ................................................................... 70 

5.1 INTRODUCTION ................................................................................................................ 70 

5.2 KEY FINDINGS FROM THE STUDY ............................................................................... 70 

5.2.1 User friendliness and benefits of using OTT platforms and its influence on consumer 
decisions to switch from traditional TV. ....................................................................................... 70 

5.2.2 Usefulness of OTT services, in terms of content relevance and quality to customers. . 70 

5.2.3 The relationship between social influence, and the behavioural intention to adopt OTT 
services over traditional subscription television. .......................................................................... 71 

5.3 CONCLUSION ..................................................................................................................... 72 

CHAPTER  6. CONCLUSIONS AND RECOMMENDATIONS ................................................... 73 

6.1 INTRODUCTION ................................................................................................................ 73 

6.2 KEY HILIGHTS FROM THE STUDY ................................................................................ 73 

6.2.1 User-Friendliness as a key Driver of OTT .................................................................... 73 

6.2.2 Usefulness of OTT services .......................................................................................... 73 

6.2.3 Relationship between social influence and Consumer  adoption of OTT services ....... 73 

6.3 RECOMMENDATIONS FROM THE STUDY ................................................................... 74 

6.3.1 Continuous Investment in User Interface ...................................................................... 74 

6.3.2 Leverage Advanced Data Analytics and Machine Learning Techniques ..................... 75 

6.3.3 Develop Targeted Social Media Marketing Strategies ................................................. 75 

6.4 MANAGERIAL IMPLICATIONS ....................................................................................... 76 

6.4.1 Strategic Adaptation to Changing Consumer Preferences ............................................ 76 

6.4.2 Content Curation and Personalisation as Competitive Advantages .............................. 76 



viii 
 

6.4.3 Rethinking Monetisation Strategies .............................................................................. 77 

6.4.4 Leveraging Social Influence and Community Engagement .......................................... 77 

6.4.5 Infrastructure and Technological Investment ................................................................ 77 

6.5 AREAS FOR FUTURE STUDIES ....................................................................................... 77 

6.5.1 The Long-Term Impact of OTT on Traditional Television Business Models .............. 77 

6.5.2 The Role of Artificial Intelligence and Data Analytics in OTT Personalisation .......... 78 

6.6 CONCLUSION ..................................................................................................................... 78 

APPENDIX A – PARTICIPANT INFORMATION SHEET ................................................................ 83 

APPENDIX B – RESEARCH  INSTRUMENT ................................................................................ 85 

APPENDIX C – RESPONDENT CONSENT FORM ....................................................................... 87 

APPENDIX D – ETHICS CLEARANCE CERTIFICATE ............................................................... 92 

APPENDIX E – PLAGIARISM DECLARATION ........................................................................... 93 

APPENDIX F – EDITING LETTER CONFIRMATION................................................................... 95 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



ix 
 

 
LIST OF FIGURES 
 
Figure 2-1: OTT platform provider in South Africa .................................................................. 9 

Figure 2-2:Over-the-Top Streaming and Video-on-Demand .................................................. 15 

Figure 2-3:  Gross Houses Passed ............................................................................................ 18 

Figure 2-4: The Digital Vortex ................................................................................................ 19 

Figure 2-5: Technology Acceptance Model 2 ......................................................................... 25 

Figure 2-6: Hypothesis development ....................................................................................... 30 

Figure 3-1: The research ‘onion’. ............................................................................................ 36 

Figure 3-2 Stages of planning a questionnaire ......................................................................... 42 

Figure 4-1: Summary table of preferred OTT platform ........................................................... 53 

Figure 4-2: Scree Plot .............................................................................................................. 61 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



x 
 

 

LIST OF TABLES 
 
Table 2-1: Literature review theoretical framework. ................................................................. 7 

Table 2-2: Streaming Prices ..................................................................................................... 21 

Table 2-3: Hypothesis framework ........................................................................................... 31 

Table 4-1: Summary table of study .......................................................................................... 48 

Table 4-2: Summary table of Age ............................................................................................ 48 

Table 4-3: Summary table of Gender....................................................................................... 49 

Table 4-4: Summary table of Level of Education .................................................................... 50 

Table 4-5: Summary table of Province .................................................................................... 51 

Table 4-6: Summary table of traditional television ................................................................. 51 

Table 4-7: Summary table of preferred OTT platform ............................................................ 52 

Table 4-8: Definition of constructs .......................................................................................... 53 

Table 4-9: Descriptive statistics for OTTE .............................................................................. 54 

Table 4-10: Descriptive statistics for OTTS ............................................................................ 54 

Table 4-11: Descriptive statistics for OTTC ............................................................................ 55 

Table 4-12: Descriptive statistics for OTTI ............................................................................. 55 

Table 4-13: Summary Reliability Analysis for Constructs ...................................................... 56 

Table 4-14: Reliability Analysis for OTTE Construct ............................................................. 57 

Table 4-15: Inter-Item Correlation Matrix ............................................................................... 57 

Table 4-16: Reliability Analysis for OTTS Construct ............................................................. 57 

Table 4-17:Inter-Item Correlation Matrix (OTTS) .................................................................. 58 

Table 4-18: Reliability Analysis for OTTC Construct ............................................................ 58 

Table 4-19: Inter-Item Correlation Matrix (OTTC) ................................................................. 58 

Table 4-20: Reliability Analysis for OTTI Construct .............................................................. 59 

Table 4-21 :Inter-Item Correlation Matrix (OTTI) .................................................................. 59 

Table 4-22: KMO and Bartlett's Test ....................................................................................... 60 

Table 4-23: Total Variance Explained ..................................................................................... 61 

Table 4-24: Rotated Component Matrix .................................................................................. 62 

Table 4-25: Total variance analysis ......................................................................................... 63 

Table 4-26: Pearson Correlation .............................................................................................. 64 

Table 4-27: H1a, H1b, H1c Model summary .......................................................................... 65 

Table 4-28: H1a, H1b, H1c ANOVA ...................................................................................... 65 



xi 
 

Table 4-29:  H1a, H1b, H1c Coefficients ................................................................................ 65 

Table 4-30: H2a Model summary ............................................................................................ 66 

Table 4-31:  H2a ANOVA ....................................................................................................... 66 

Table 4-32:  H2a Coefficients .................................................................................................. 66 

Table 4-33:  H3a, H3b Model summary .................................................................................. 67 

Table 4-34: H3a, H3b ANOVA ............................................................................................... 67 

Table 4-35: H3a, H3b Coefficients .......................................................................................... 67 

Table 4-36: H4 Model summary .............................................................................................. 68 

Table 4-37: H4 ANOVA .......................................................................................................... 68 

Table 4-38: H4 Coefficients..................................................................................................... 68 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



xii 
 

 
 
LIST OF ACRONYMS 

AI  Artificial Intelligence 

DE  Digital Experience 

DSTV  Digital Satellite Television 

EMS  Economic and Management Sciences 

FWA  Fixed Wireless Access 

ICASA Independent Communications Authority of South Africa 

IP  Internet Protocol 

MCSA  MultiChoice South Africa 

OTT  Over-the-Top 

SABC  South African Broadcasting Corporation 

SPSS  Statistical Package for the Social Sciences 

TV  Television 

VOD  Video-on-Demand 

PaaS  Platform as a Service 

SaaS  Software as a Service 

SMM  Social Media Marketing 

SVOD  Subscription Video On Demand 

TAM2  Technology Acceptance Model 2 

 
 
 
 
 
 



CHAPTER  1. INTRODUCTION AND BACKGROUND OF THE STUDY 

1.1 INTRODUCTION 

 

Chapter one presents and discusses the background of the study, outlining the problem 

statement and the rationale behind it. This chapter also details the research objectives, research 

questions, significance of the study, and its limitations and delimitations. 

 

1.2 BACKGROUND OF THE STUDY 

 

OTT platform have become immensely popular among youth in South Africa, who spend 

significant amounts of time watching shows across various platforms that cater to their 

preferences. Platforms like Showmax, DSTV streaming, Netflix, Amazon Prime, and YouTube 

are highly watched among youth. An increasing number of television viewers are adopting 

over-the-top (OTT) TV services to stream television content online. These services disseminate 

online content via the Internet or other IP-based transmission pathways. In Africa, access to 

the internet and digital technologies is expanding, but it still lags behind the global average. 

Despite these challenges, the continent's digital economy shows immense potential and is 

projected to reach $180 billion by 2030 (Charter Project Africa, 2022). This growth is driven 

by increasing mobile connectivity, innovative digital solutions, and a young, tech-savvy 

population eager to embrace new technologies. Investing in digital infrastructure, education, 

and policies that foster innovation will be crucial to realising this potential and bridging the 

digital divide (Charter Project Africa, 2022).  

 

Due to enhanced accessibility, greater availability, and the increasingly affordable nature of 

broadband data, Generation Z is increasingly adopting online streaming platforms. This trend 

is driven by their desire for on-demand access to content tailored to their preferences and 

schedules. The latest technological improvements have also contributed to the growth of the 

video-on-demand market. Bower and Christensen (1995), describe the phrase "disruptive 

technology" as new technologies that differ from existing ones by targeting previously 

underserved market segments. This concept is readily observable in the paradigm shift towards 

on-demand content consumption models, where new technologies have transformed traditional 

viewing habits. In Africa most of the OTT providers are not able to grow the market due to 



2 
 

global players like Netflix. Furthermore, consumers who were previously subscribers of pay 

TV platforms such as cable and satellite have been transitioning to OTT services, selecting 

them as their primary video platform. Meanwhile, some subscribers opted to downgrade from 

premium to regular pay TV packages (Banerjee et al., 2014). In the Middle East 

STARZPLAY's one of the OTT provider, business strategy was tailored to cater to the diverse 

interests and payment choices of families in the region, which allowed it to increase its 

subscriber base quickly. The company's success continued even after well-funded domestic 

enterprises and global giants such as Netflix entered the market. Disney, Paramount, and HBO 

were among the big American studios in discussions with local operators about possible 

agreements at the time of the lawsuit (Elie, 2021). 

 

Recognising South Africa's integration into global shifts in the television broadcasting sector, 

the Group CEO of MultiChoice voiced apprehensions over the perceived regulatory disparity 

favouring OTT TV service providers. This circumstance, highlighted in the same source, 

inhibits competition, prompting MCSA to urge the Independent Communications Authority of 

South Africa (ICASA) to enact industry regulations (Nokuphiwa and Robertson, 2020). There 

have been various claims that the number of subscribers to traditional pay-TV services and the 

adoption of over-the-top (OTT) TV services are connected. 

The purpose of this study is to investigate the effects of Over-the-Top (OTT) on subscription 

television providers in Africa. Analyse the competition within the video platform market and 

to derive implications for both OTT service providers and traditional pay TV platform 

providers. Achieving this objective will offer valuable insights for practical applications and 

contribute to academic discourse, particularly through the analysis.  

The history of OTT platforms dates back to the early days of the internet, when companies 

began experimenting with delivering video content online. In the 1990s, RealNetworks 

introduced RealPlayer, a streaming media player that enabled users to watch video content over 

the web (Bharat, 2023). According to Duhamel (2021), growth in the entertainment and media 

industries has resulted in the establishment of new organisations OTT services, which have the 

potential to significantly threaten the subscriber demographic of traditional television service 

providers. The average number of mobile devices per person globally has increased, these 

devices are the primary means of internet-based entertainment and communication. The 

evolving global media and entertainment landscape necessitates service providers to 

strategically reassess their positioning for sustained competitiveness. By prioritising subscriber 



3 
 

needs, enhancing digital strategies, and refining business models, providers can effectively 

retain and attract subscribers through emerging digital platforms (Bonnet & Westerman, 2021). 

The majority of people in Africa have access to the internet, and as over-the-top (OTT) content 

continues to improve, this is altering the way people watch television material. According to 

Junghwan et al. (2016), "Mobile" and "Internet" are key components of the new media 

ecosystem. In February 2019, nearly 144 million people spent a total of 362 million hours on 

an OTT platform. Of this time, 87% was spent on smartphones and 13% on desktops (Suman 

et al, 2019). 

The rise of the Internet has significantly impacted traditional media, altering consumer media 

usage patterns. Additionally, the widespread adoption of mobile devices such as smartphones 

and tablets has enabled consumers to access unlimited content anytime and anywhere. 

Significant global shifts, including those in South Africa, have propelled OTT TV service 

providers such as Netflix, YouTube Premium, Amazon Prime, Black, and Showmax to 

prominence. These platforms are disrupting the television broadcasting industry, transforming 

how audiences consume content and expanding viewer options (Nokuphiwa & Robertson, 

2020). Today, OTT platforms are an integral part of the entertainment industry, offering 

viewers a diverse range of on-demand content. The popularity of these platforms is expected 

to continue growing, with more companies launching streaming services and an increasing 

number of subscribers. 

Content openness, cost, and lack of technological readiness are emerging as major barriers to 

the adoption of OTT services. People prefer to watch OTT videos on mobile phones rather than 

smart TVs, laptops, or tablets, as mobile phones offer higher personalisation Suman et al 

(2021). This is one of the primary reasons viewers are switching from traditional television 

channels to OTT video platforms. A key driver for the increasing market share of OTT video 

platforms is the penetration of mobile computing devices. 

China has emerged as one of the key drivers in technology and the growth in OTT platforms. 

America and China have shifted away from traditional television broadcasting services to OTT 

services. China OTT company Mongo television has increased its subscriber base to 62.6 

million subscribers. With evolving trends of global media and entertainment market dynamics 

are driving the need for African vendors or operators like Multichoice to redefine their market 

positioning to drive growth and maintain competitiveness in South Africa’s markets.  



4 
 

 

1.3 PROBLEM STATEMENT 

According to Eeden and Chow (2018), the media and entertainment industry in broadcasting 

is undergoing rapid transformation, fuelled by internet accessibility, new device adoption, big 

data analytics, and the emergence of platform-based businesses tailored to technology savvy 

subscribers. Traditional broadcasting, such as satellite organisations, struggle to predict 

customer behaviour, effectively market products to customers, and generate targeted content. 

Customers prefer subscribing to a limited number of channels, focusing on specific genres or 

viewing times, seeking maximum value for their money. There's a noticeable shift in the TV 

industry as subscribers increasingly opt for OTT platforms.  

In Africa satellite subscription and free-to-air TV remain the predominant means for 

subscribers to access television content. Subscribers wants to choose selected programs at their 

convenience, departing from traditional subscription services. According to Lai Lin (2023), as 

of June 2021, Mango TV's mobile app had garnered approximately 209 million monthly active 

users in China. Nearly 74% of the new users acquired by Mango TV that month were female. 

This Chinese subscription OTT service provider is renowned for its exclusive reality shows 

that have gained significant popularity among female TV audiences, such as "Sisters Who 

Make Waves" and "Your Face Sounds Familiar." As the population is growing in Africa there 

is significant growth of OTT platform and achieve the same customer base as Mango TV in 

China. With the evolving landscape of the global media and entertainment industry, South 

African service providers like MultiChoice must adapt their market positioning to drive growth 

and maintain competitiveness. 

According to Broeck et al (2008), the evolving broadcasting model necessitates new business 

strategies that integrate telecom companies, content producers, content aggregators, and 

broadcasting firms to be able to stay competitive. Television content consumption has changed 

from traditional consumption to OTT subscription services. Given this background this study 

aims at investigating the clear effects of Over-the-Top on subscription television providers in 

South Africa. 

 

1.4 AIM OF THE STUDY: 

This study aims to investigate the clear effects of Over-the-Top on subscription television 

providers in South Africa. This study focused on customer behaviour and switching from 



5 
 

traditional subscription TV services to OTT platform services. Currently in Africa there is no 

study that has been conducted to fully understand this customer behaviour.  

 

1.5 RESEARCH OBJECTIVES: 

 The problem statement as well as this primary objective were attained by: 

 Examining the user friendliness and benefits of using OTT platforms to customers  

 Investigating the usefulness of OTT services, in terms of content relevance and quality 

to customers. 

 Examining the influence of social factors on the adoption of OTT services over 

traditional subscription television.  

1.6 RESEARCH QUESTIONS 

The research objectives presented above were addressed by answering the following research 

questions: 

 How do perceived ease of use and perceived benefits influence customer adoption of 

Over-the-Top (OTT) platforms? 

 How do consumers perceive the usefulness of Over-the-Top (OTT) services in terms of 

content relevance and quality? 

 What is the influence of social factors on the adoption of OTT services over traditional 

subscription television? 

 

1.7 SIGNIFICANCE OF THE STUDY: 

Researching OTT platforms in South Africa is crucial for gaining insights into customer 

behaviour, market dynamics, economic impacts, regulatory challenges, technological 

advancements, cultural influences, industry growth, investment opportunities, consumer 

protection, and international benchmarks. This comprehensive understanding will provides 

significant benefits for stakeholders in the media and entertainment sectors by helping media 

companies refine their content strategies to align with consumer preferences, assisting 

businesses in identifying opportunities for growth and innovation, and informing policymakers 

on the development of balanced regulations that support industry expansion while ensuring 

consumer protection. Additionally, the study enhances strategies for customer acquisition, 

engagement, and retention, enabling service providers to build long-term relationships with 

their audiences. Furthermore, traditional broadcasters can leverage these insights to adapt their 

offerings and remain competitive in the evolving digital streaming landscape. By providing a 



6 
 

data-driven understanding of industry trends, this research supports informed decision-making, 

service optimisation, and sustainable growth in South Africa’s media and entertainment sector. 

 

This study will assist in answering the main research objective which is to investigate the clear 

effects of Over-the-Top on subscription television providers in South Africa and how these 

organisations can leverage OTT platform to remain competitive. Furthermore, this study will 

have an academic contribution regarding insights on how customer preferences and habits are 

changing towards television subscription in South Africa, hence allowing the policy makers to 

analyse the opportunities and regulatory obstacles that OTT and subscription TV face. 

 

1.8 LIMITATIONS OF THE STUDY 

This study focused on a subset of customers and as such it introduced sampling biases, leading 

to results that are not representative of the entire population. This was   addressed by ensuring 

that data collection methods were consistent across all sampled customers to avoid systematic 

errors or biases in data gathering. The study also catered for different segments or 

demographics  such as age groups, gender and ethnic groups within South Africa  this ensured  

that  the sample included representative proportions from each stratum. 

 

1.9 DELIMITATION OF THE STUDY  

The study was restricted to the South African market, it did not include data from other African 

or international regions. This focus made   it possible to analyse customer behaviour, regulatory 

environments, and local market dynamics in great length. This study covered a period from 

August 2023 to February 2025 and it included recent development and trends.  

 

1.10 CONCLUSION  

This chapter concludes with a comprehensive exploration of the background focusing on clear 

effects of Over-the-Top on subscription television providers in South Africa. The chapter 

provided foundations by summarising the study research objectives, research questions, and 

understanding the significance of this study.  

 

 

 

 



7 
 

CHAPTER  2. LITERATURE REVIEW 

2.1 INTRODUCTION 
 
This chapter examines existing literature published by other authors to explore how subscribers 

access and engage with media from various services on a daily basis. This literature review 

investigate and analyse the discernible impacts of OTT platforms on subscription television 

providers specifically within South Africa. By synthesising existing research, empirical 

studies, and theoretical frameworks, the review seeks to uncover insights into how OTT 

services have reshaped the competitive landscape, influenced viewer preferences, and 

prompted strategic shifts among traditional television providers. 

2.2 LITERATURE REVIEW SCOPE 
 
The below literature review will identify gaps in existing research, contextualise global trends 

to the South African environment, and establish the theoretical and practical significance of the 

study. It will also help frame the research questions and methodology. 

 

Table 2-1: Literature review theoretical framework. 

 

Source: Compiled by the Author, 2024 
 
 
 
 
 
 



8 
 

2.3 EASE OF USE OF OTT PLATFORMS 

2.3.1 Overview of OTT platforms and their evolution  
 
Technology is crucial for business success, playing a pivotal role in determining the outcomes 

of an organisation and its business-level strategy. According to Tanya and David (2014), the 

rapid advancement of technology is filled by innovation, driven by entrepreneurs who 

constantly push the boundaries of current limitations. As new frontiers are explored, older 

technologies become obsolete, and any competitive edge gained is short-lived. Technological 

breakthroughs can either lead to the decline of certain industries or pave the way for the 

emergence of new opportunities. The internet presents numerous vulnerabilities, making online 

transactions potentially unsafe due to the accessibility of a large number of users. 

 

OTT platforms are internet-based services that deliver media content (video, audio, etc.) 

directly to consumers, circumventing traditional distribution methods like cable or satellite 

television. These platforms provide consumers with the flexibility to access content on-demand 

across a range of devices, including smartphones, tablets, smart TVs, and computers According 

to Dhiman (2023), previous studies on Over-the-Top (OTT) platforms highlight their disruptive 

impact on the entertainment industry, offering a global platform for flexible viewing 

experiences and diverse content libraries. The growing popularity of OTT services, such as 

Netflix and Amazon Prime Video, is attributed to their cross-platform compatibility and 

inclusion of localised content. However, challenges such as content fragmentation and legal 

disputes over the use of profanity underscore the importance of balancing creative freedom 

with responsible content distribution. Li, X. (2023) argue that Netflix has transformed from a 

DVD rental service into a global streaming giant, with a market valuation exceeding $200 

billion. The company has significantly reshaped consumer behaviour and redefined how 

audiences engage with content worldwide. 

 

According to Nokuphiwa and Robertson (2020), the global media landscape, including in 

South Africa, has undergone significant transformation with the rise of OTT TV service 

providers such as DStv streaming, Netflix, YouTube Premium, Amazon Prime, Black, and 

Showmax. These platforms are disrupting traditional television broadcasting, reshaping 

content consumption patterns, and offering viewers greater flexibility and choice. Staff (2023), 

argue that mobile operators can play a significant role in driving OTT services on the African 

continent. The paid OTT market in the region is experiencing robust growth. Subscriber 



9 
 

numbers for OTT services surged 22% between 2021 and 2022 and are projected to exhibit a 

62% increase by 2028 

A summary of OTT platform provider in South Africa as listed in Figure 2-1. As competition 

intensifies, platforms are likely to focus on enhancing user engagement, expanding into 

untapped markets, and balancing quality content with affordable pricing models. 

 

Figure 2-1: OTT platform provider in South Africa 

                                           Source: Compiled by the Author, 2024 

 

Evens (2018), explains that the entertainment industry is undergoing a rapid digital 

transformation, a key focus of numerous studies. The emergence of Over-the-Top (OTT) 

platforms has significantly disrupted traditional content distribution models, enabling viewers 

to access a vast array of content, including movies, TV shows, and documentaries, via the 

internet. This digital transformation has fundamentally reshaped consumer media consumption 

patterns. 

 

2.3.2 Ease of use as a Key factor   
 
According to Shaik and Viswanatha (2024), the digital revolution has profoundly reshaped 

media and entertainment consumption. Over-the-Top (OTT) platforms have emerged as a 

cornerstone of this transformation, providing a diverse content library encompassing movies, 

TV shows, user-generated videos, and live streaming, all delivered via the internet. Leveraging 

their inherent flexibility and convenience, OTT platforms have disrupted traditional cable and 

satellite television services, empowering users with the ability to personalise their viewing 

experience and access content on-demand. According to Suman et al. (2021), Fuelled by rapid 

technological advancements, the proliferation of smartphones, and the growing availability of 

affordable internet access, Over-the-Top (OTT) media services have witnessed a surge in 

popularity. OTT platforms empower users with the freedom to enjoy a vast library of TV series, 

movies, and other content on-demand, tailoring their viewing experience to their convenience.  



10 
 

In the study by Bhullar et al. (2020), Analysis revealed that content quality and user interface 

significantly influence OTT adoption rates. Amisha et al (2021), argue that OTT platforms 

empower viewers with the flexibility to enjoy a diverse content library, including shows, series, 

and movies, across various devices and locations. This on-demand accessibility fosters a 

convenient and personalised viewing experience. Consumers are increasingly willing to invest 

in premium subscriptions that grant them the privilege of accessing content anytime, anywhere, 

aligning with their evolving entertainment preferences. Ease of use plays a pivotal role in the 

success and adoption of Over-the-Top (OTT) platforms. Consumers are increasingly drawn to 

platforms that offer seamless, intuitive, and user-friendly experiences, as these aspects 

significantly enhance satisfaction and engagement. 

 

2.3.3 Consumer Perception of Benefits  
 
According to Shilpa and Kumal (2021), a study titled 'A Study of Consumers of OTT Platforms 

in India' revealed that OTT platforms emerged as the preferred source of entertainment for 

viewers during the pandemic. The research investigated the impact of OTT on customer 

satisfaction and the factors driving user adoption. Notably, the study found a preference for 

OTT services among viewers under 30. The findings support the notion that OTT platforms 

provided a superior entertainment solution during the pandemic. This dominance can be 

attributed to factors like high-quality audio-visual content suitable for diverse audiences, 

including children, and the inherent convenience offered by OTT platforms. The research 

suggests that users have significantly increased their OTT consumption, exceeding five hours 

of viewing time. 

According to Nielson (2014) and Lee (2020), the study found that over 70% of OTT subscribers 

demonstrate a propensity for binge watching. This consumer behaviour underscores the critical 

role of content diversity in driving user preference for these platforms. These findings indicate 

a shift in consumer behaviour. Unlike the passive consumption of content traditionally 

associated with broadcast media, viewers now exhibit a strong preference for actively selecting 

and engaging with content. This trend underscores the growing importance of user agency and 

personalised viewing experiences in the evolving media landscape (Lee and Jeon, 2020). 

OTT platforms offer a high degree of personalisation, enabling consumers to tailor their 

viewing experience to individual preferences, lifestyles, and device usage. Personalisation, as 

defined by Wamba et al. (2017), refers to the extent to which consumers can customise OTT 



11 
 

services to their unique needs. This level of customisation empowers OTT users to access and 

enjoy desired content on-demand across a range of devices, as highlighted by Kim and Kim 

(2018). Consumers increasingly perceive OTT platforms as a transformative solution for media 

consumption. These perceptions are shaped by the tangible and intangible benefits offered by 

OTT services, which cater to evolving preferences for convenience, personalisation, and value. 

The rapid advancement of big data technology is profoundly impacting the media industry. By 

leveraging big data analytics, businesses can gain a significant competitive advantage, 

streamline operations, and cultivate deeper customer relationships. This data-driven approach 

necessitates a fundamental shift in the media industry, prioritising customer needs and 

preferences over traditional television. (Amanpreet, 2022), Big data encompasses datasets of 

unprecedented scale and complexity, exceeding the capabilities of traditional data processing 

methods. Effective management necessitates robust infrastructure with scalable design, 

efficient storage, and advanced analytical capabilities. By analysing vast and diverse data 

sources, organisations can uncover hidden patterns, identify market trends, understand 

customer preferences, and gain valuable insights to inform strategic decision-making. 

2.3.4 Behavioural Drivers for Switching  
 
The competitive landscape of video content consumption has been reshaped by the rise of 

streaming giants such as Netflix, Hulu, and Amazon Prime, who have disrupted traditional 

cable providers by offering significantly larger content libraries (Lee and Lee, 2015). 

According to Po-Chien and Yu-Ping (2023), a key factor driving the shift in video consumption 

in Taiwan is audience perception. Viewers perceive traditional TV operators as offering limited 

content diversity, while recognising OTT platforms as providing a more flexible and diverse 

viewing experience. This shift in perception is evident across all user segments, including those 

utilising TV broadcast, IPTV, and other telecom services. 

 

According to Blake (2021), Content quality remains paramount in consumer subscription 

decisions. Viewers are discerning, unwilling to pay for content they do not intend to watch. 

This is reflected in Netflix's significant investment in original content, exceeding $13 billion 

in 2018, with approximately 85% allocated to original productions. This strategic focus on 

original programming has proven to be a key differentiator for the platform. Blake (2021), also 

argue that Netflix's online business model has facilitated the collection of extensive user data. 

Leveraging AI-powered algorithms, the platform delivers highly personalised 



12 
 

recommendations based on individual viewing history, preferences, ratings, and demographics. 

These recommendations are remarkably accurate, with Netflix reporting that 80% of user 

engagement originates from personalised suggestions. In an era of heightened customer 

expectations, Netflix serves as a benchmark for personalised experiences across all industries. 

Furthermore, Netflix demonstrates a strong commitment to continuous innovation. 

 

Consumers are increasingly migrating from traditional broadcasting to OTT platforms, driven 

by several behavioural and contextual factors. These drivers reflect shifting preferences in how 

audiences access, consume, and value media content. OTT subscriptions are often seen as more 

affordable compared to traditional pay-tv packages, especially with no installation fees or 

equipment costs. 

 

2.3.5 Barriers to Switching  
 
Despite initial success, the OTT market is now characterised by intense competition, primarily 

driven by the entry of numerous multinational players (Sharma and Lulandala, 2023). This 

market saturation has increased customer acquisition and retention costs, exacerbated by low 

switching costs between platforms. Furthermore, rising subscription prices are straining 

consumer loyalty. To remain competitive, OTT platforms are increasingly focusing on content 

differentiation and personalisation strategies to cater to diverse viewer needs (Palomba, 2022). 

According to Jan (2024), the competitive landscape between fibre and 5G fixed wireless access 

providers is rapidly intensifying. As key players in both technologies invest heavily in 

expanding their coverage, a fierce battle for customer acquisition is underway. The rapid rollout 

of 5G technology presents a formidable challenge to fibre providers. This challenge is 

compounded by the diversion of significant investment towards mitigating the severe impacts 

of load shedding, battery theft, and vandalism, hindering fibre network expansion and 

impacting the ability of fibre providers to effectively compete. In South Africa the focus has 

been most in lucrative suburbs, where operators deploy fibre in streets another operator has 

already passed. 

 

Despite recent regulatory interventions aimed at reducing data prices, data costs in South Africa 

remain prohibitively high for many consumers. The State of ICT in South Africa report 

highlights that affordability remains a significant barrier to internet access, with data costs, lack 

of internet-enabled devices, and insufficient digital literacy cited as key factors. These 



13 
 

challenges are often intertwined with poverty, further exacerbating digital inequality (Tapiwa, 

2020). 

 

While Over-the-Top (OTT) platforms offer numerous advantages, certain barriers may prevent 

consumers from fully transitioning from traditional TV services to OTT. These barriers often 

stem from technical, economic, behavioural, and contextual factors. In South Africa regions 

with low internet penetration, accessing OTT platforms remains a challenge. Some users, 

especially older demographics, may find traditional TV setups simpler and more familiar. 

 

2.3.6 Impact of External Factors 
 
According to Hanna (2018), governments worldwide face challenges in establishing 

appropriate policies that align with emerging digital applications. The Department of 

Communications and Digital Technologies (2023), published a draft white paper proposing 

Over-the-top (OTT) video services such as Netflix, Prime Video, and Disney+ may soon be 

subject to stricter regulations in South Africa, potentially requiring them to obtain a license to 

continue their operations in the country. Currently, services like Netflix, Prime Video, and 

Disney+, are not required to possess an operating license in South Africa, unlike traditional 

services such as the South African Broadcasting Corporation and DStv. 

 

It is suggested that regulation is essential as it drives the development and implementation of 

informed policies, enabling governments to provide reliable ICT technologies to the public 

(Parcu and Silvestri, 2014). Regulation also aims to address challenges that may emerge in the 

ICT industry effectively. In Africa markets have different regulatory policies regulations have 

an impact on customer choice and market competitiveness. 

 

The growth and adoption of OTT platforms in South Africa are influenced by various external 

factors. Despite progress, challenges like inconsistent connectivity in rural areas and the cost 

of data bundles remain barriers for many users. Economic disparities in South Africa influence 

the affordability of OTT subscriptions. Lower income households may prioritise basic needs 

over entertainment services. 

 

 



14 
 

2.4 CUSTOMERS FIND OTT SERVICES 

2.4.1 OTT Market Overview in South Africa  
 

According to Statista (2024), The Video-on-Demand market in South Africa is projected to 

generate US$338.70 million in revenue by 2025. The market is anticipated to exhibit a robust 

compound annual growth rate (CAGR) of 7.24% from 2025 to 2027, resulting in a projected 

market volume of US$389.50 million by 2027. Nokuphiwa and Robertson (2020), argue that 

consumer behaviour is undergoing a significant shift, with a growing trend towards cord-

cutting – the abandonment of traditional pay-TV services in favour of OTT platforms. 

Furthermore, a substantial number of consumers are engaging in cord shaving, downgrading 

their premium pay-TV subscriptions to less expensive packages while concurrently subscribing 

to OTT services. Additionally, a segment of consumers, known as 'cord-nevers,' have never 

subscribed to traditional pay-TV and have directly adopted OTT services as their primary 

source of entertainment. 

 

According to Chen (2017), Consumer preferences are increasingly shifting towards short-form 

video content, readily accessible on portable devices. This preference is driven by the desire 

for convenient consumption, enabling viewers to enjoy content anytime, anywhere, such as 

while commuting. This shift empowers consumers with greater control over their viewing 

experiences. Daniels (2017), argue that viewers aged 18-24 exhibit diverse content 

consumption habits, utilising a range of devices including television sets, laptops, tablets, and 

smartphones. In contrast, older age groups, including those aged 55 and above, predominantly 

consume television content via traditional television sets. 

 

The OTT market has experienced exponential growth globally, driven by advancements in 

technology, shifting consumer behaviours, and a competitive landscape. The South African 

OTT market reflects global trends while presenting unique challenges and opportunities shaped 

by local dynamics. The South African OTT market is expanding due to increasing smartphone 

adoption, affordable internet packages, and localised content. Local players like Showmax and 

VIU have gained a competitive edge by offering regionally relevant programming. 

 

As show in Figure 2-2. The next wave of technological innovation is poised to revolutionise 

the landscape of streaming and on-demand content consumption, providing viewers with more 

personalised and engaging experiences. 



15 
 

 

Figure 2-2:Over-the-Top Streaming and Video-on-Demand 

Source: Ruether (2021) 

2.4.2 Content Relevance 
 
According to Madhu and Abdul (2024), OTT platforms empower viewers with the flexibility 

to access a vast library of content on-demand across a range of internet-enabled devices, 

enabling anytime, anywhere viewing. This shift from scheduled programming to personalised, 

on-demand streaming has fundamentally transformed consumer entertainment habits, 

presenting both challenges and opportunities for consumers and industry stakeholders. Madhu 

and Abdul (2024), argue that the production of original and exclusive content has become a 

cornerstone strategy for OTT platforms. Platforms such as Netflix and Amazon Prime Video 

invest heavily in developing high quality, unique content to attract and retain subscribers. This 

strategic focus on original content has not only intensified competition within the OTT market 

but has also revolutionised the content creation industry. 

 

According to Statista (2024), given South Africa's diverse population with multiple languages 

and cultures, OTT Video platforms are strategically adapting their content offerings to cater to 

this diversity. By providing content in various languages and genres, these platforms 

effectively attract a wider audience and cater to the specific preferences of South African 

viewers. Moreover, underlying macroeconomic factors play a crucial role in shaping the 

development of the South African OTT Video market. 

 

Content relevance is a critical factor driving consumer engagement, retention, and satisfaction 

with OTT platforms. In the context of South Africa, where diverse cultural, linguistic, and 



16 
 

social preferences exist, the ability to provide meaningful and localised content determines the 

success of OTT platforms. Content that resonates with local customs, traditions, and values 

strengthens audience connection. 

 

2.4.3 Content Quality 
 
OTT platforms have experienced remarkable global growth in recent years (Chang & Chang, 

2020). According to Singh et al. (2021), this surge in popularity can be attributed to several 

key factors, including the ability of OTT platforms to offer exclusive, high-quality content that 

significantly exceeds the quality and diversity of traditional television viewing experiences. 

Furthermore, Sudhir & Rao (2021), argue that technological advancements and improvements 

in internet infrastructure have played a crucial role in driving this rapid growth. Nkosinathi 

(2024), argue that a significant drawback of the increasingly fragmented market is the viewer 

experience. Consumers often find themselves navigating a complex ecosystem of streaming 

platforms, facing the challenge of subscribing to multiple services to access all the content they 

desire. 

Content quality is a critical factor that determines the success and consumer appeal of OTT) 

platforms. It directly influences user satisfaction, subscription rates, and audience retention. In 

South Africa, where the OTT market is becoming increasingly competitive, platforms must 

prioritise high-quality content to meet diverse consumer expectations. High-quality content is 

a major driver of initial subscriptions, particularly for platforms offering exclusive or original 

programming.  

2.4.4 Consumer Perceptions of Usefulness 

According to a study that was conducted by Mark and Loredana (2021), individuals' 

perceptions of usefulness and ease of use were strong predictors of their intentions to utilise 

online streaming services. Moreover, participants reported seeking emotional gratifications 

from these technologies, such as distraction and relaxation during leisure time. These findings 

highlight the importance of user experience and emotional gratification in driving the adoption 

of online streaming services. 

The perceived usefulness of OTT platforms plays a significant role in driving adoption and 

continued usage. Consumers assess usefulness based on the platform's ability to meet their 

entertainment needs, provide value, and align with their preferences and lifestyles. In South 



17 
 

Africa, these perceptions are influenced by factors such as accessibility, content relevance, 

cost, and technological infrastructure. User-friendly interfaces and AI-driven recommendations 

simplify content discovery, increasing satisfaction. 

 

2.4.5 Impact of Internet Connectivity and Affordability 
 
According to Darrell (2015), numerous barriers impede internet access for a significant portion 

of the global population, particularly in developing countries. These barriers include poverty, 

high costs associated with devices, data, and telecommunications, infrastructure limitations, 

digital literacy challenges, and policy and operational constraints. Financial constraints, 

including limited disposable income, pose a significant obstacle to internet access. This limits 

the ability of individuals to acquire devices and afford digital services. A Deloitte study 

emphasises that income levels are a key determinant of internet penetration, with lower GDP 

per capita often correlating with lower internet access rates. Unless individuals can access free 

or low-cost digital services, they will be unable to fully participate in the benefits of the digital 

revolution. 

 

Data charges remain a significant financial burden for many users. The escalating costs of data 

consumption, particularly driven by the increasing demand for video services, are likely to 

persist in the near future. According to Tapiwa (2020), research ICT Africa's Retail African 

Mobile Pricing (RAMP) Index reveals that South Africa ranks 33rd out of 46 African countries 

in terms of data affordability per gigabyte (GB) as of Q1 2020, indicating a relatively poor 

performance compared to other African nations. It's important to acknowledge that recent 

reductions in mobile tariffs were primarily driven by the Competition Commission's Data 

Services Market Inquiry, rather than a philanthropic response to the COVID-19 pandemic, as 

one would not expect altruistic behaviour from mobile network operators. 

 

Darrell (2015), argue that in countries such as Mexico, South Africa, Bangladesh, Malaysia, 

and Brazil, taxes on mobile broadband services create a significant barrier to internet access. 

These "connectivity taxes" increase the cost of mobile services, particularly impacting 

underserved communities where affordability is a critical concern. High taxation hinders 

internet adoption by making it challenging for individuals to afford the necessary devices and 

services. 



18 
 

Internet connectivity and affordability are critical factors influencing the adoption, usage, and 

growth of OTT platforms. In South Africa and globally, these elements play a pivotal role in 

shaping consumer experiences and perceptions of OTT service. In South Africa urban areas 

have relatively better access to high-speed internet (fibre and LTE), enabling seamless OTT 

streaming while in rural areas face challenges due to limited broadband infrastructure, reducing 

the accessibility of OTT services. 

In South Africa according to a study by Jan (2024), it revealed that the most notable growth in 

recent years has occurred in metro suburbs beyond primary cities, as well as in secondary cities 

and numerous smaller towns. As it shown on figure 2.4. 

 

Figure 2-3:  Gross Houses Passed 

                                           Source: MyBroadband (2024) 

 

2.4.6 Comparison with Traditional TV in South Africa 

The television industry emerged as a dominant force in mass communication, succeeding the 

print media era. This was achieved through centralised broadcasting, enabling viewers to 

receive media content directly in their homes via television sets. According to Baccarne et al. 

(2013), for decades, the broadcasting process remained largely unchanged. Broadcasters 

acquired content from producers or developed their own content, packaging it for distribution 

on their branded channels or through third-party channels. This content was then transmitted 

to viewers via various technologies, including analogue and digital radio waves, satellite, and 

cable. 



19 
 

Conventional subscription-based TV providers must adhere to strict broadcasting regulations, 

which are governed by national policies and legislation. As outlined by ICASA (1999), the 

Broadcasting Act requires broadcasters to support industry advancement and societal progress 

by investing in content creation, ensuring the equitable and effective use of broadcasting 

resources, and fulfilling additional responsibilities. These regulatory obligations ultimately 

lead to operational expenses. 

 

The media and entertainment sector occupies a central position in this period of rapid industry 

flux as it shown on Figure 2-4 Characterised by the dissolution of existing industry boundaries 

and the emergence of new, interconnected ecosystems. 

 

 

Figure 2-4: The Digital Vortex 

                           Source: Global Centre for Digital Business Transformation (2016) 

 

The perceived benefits of OTT services are driving a significant shift in consumer behaviour, 

with technologically savvy subscribers increasingly opting out of traditional TV subscriptions 

(Park & Kwon, 2019). This decision is often driven by financial considerations, as consumers 

evaluate the increasing cost of traditional TV subscriptions against the cost-effectiveness of 

OTT services. OTT services typically offer competitive pricing with minimal setup costs, 

leveraging existing consumer devices for content consumption (Kim et al., 2016). 

 

According to Rubenking et al. (2018), traditional linear TV subscriptions are facing increasing 

subscriber dissatisfaction due to frequent advertisements, repetitive content, and limited 



20 
 

viewing options. Viewers are frustrated by the inability to easily access desired content, often 

requiring extensive channel surfing. In contrast, Video-on-Demand (VOD) services empower 

viewers with the ability to select content from a diverse range of genres and enjoy it across 

multiple devices via the internet. 

 

The rise of OTT platforms has fundamentally altered the television landscape in South Africa, 

presenting both competition and alternatives to traditional TV services. While both forms of 

media delivery aim to provide entertainment, they differ significantly in terms of accessibility, 

content delivery, consumer preferences, and cost structures. Below is a comprehensive 

comparison of OTT platforms and traditional TV in the South African context. 

 

2.5 UNDERSTANDING HOW USEFUL CUSTOMERS FIND OTT SERVICES  

2.5.1 Overview of OTT content offering in South Africa 
 
Thinus (2020), argue that the South African television viewing landscape has become 

significantly more complex in 2020. This complexity is further compounded by the anticipated 

local launches of HBO Max and The Walt Disney Company's Disney+ streaming services, both 

of which have yet to enter the South African market. Viewers are confronted with an 

increasingly fragmented media landscape, characterised by a proliferation of streaming 

services, each offering its own extensive content library. This complex environment is further 

compounded by the evolution of traditional pay-TV services, which are increasingly 

integrating SVOD offerings. This escalating complexity presents a significant challenge for 

consumers, who are increasingly overwhelmed by the sheer number of options, struggling to 

make informed decisions regarding content availability, subscription costs, and the overall 

value proposition of each service. 

Ironically, after years of consumer criticism regarding MultiChoice's DStv as the dominant 

player in the pay-TV market, the industry has undergone a significant shift. MultiChoice 

previously served as a one-stop shop, acquiring a substantial portion of Hollywood studio 

content and offering it to viewers as a comprehensive bundled package. However, consumers 

now find themselves in a more fragmented market, where they must navigate a multitude of 

streaming services to access their desired content, effectively creating their own "bundles" at a 

potentially higher cost (Thinus, 2020), Park and Kwon (2019), identify several key advantages 

associated with OTT services.  



21 
 

These include reduced content distribution costs, enabling smaller producers to reach a wider 

audience. Furthermore, OTT platforms facilitate the collection of real-time viewer feedback, 

such as comments, reviews, and ratings, enabling service providers to proactively implement 

adjustments to enhance subscriber satisfaction. These advantages provide a significant 

competitive advantage over traditional subscription television (Park & Kwon, 2019). 

According to Vivek et al (2023), OTT enables content providers and streaming platform 

owners to collect precise information about their audience, including demographics such as age 

groups and interests. This data empowers them to customise their content offerings to appeal 

to diverse target audience effectively. South Africa’s OTT market has seen significant growth, 

with platforms catering to diverse audience preferences through a variety of content offerings. 

The landscape is shaped by a mix of international giants, regional players, and niche services 

focusing on localised content. Nkosinathi (2024), argue that streaming services generally offer 

a more cost-effective alternative to traditional satellite subscriptions. However, the fragmented 

nature of the streaming market presents a significant challenge for consumers. Viewers 

frequently encounter the dilemma of subscribing to multiple platforms to access their desired 

content, as no single platform offers a comprehensive content library, leading to increased 

overall entertainment expenses. Table 2-2 display all streaming services available and how 

much it can cost.   

Table 2-2: Streaming Prices 

 

Source: We Build South Africa’s ultimate streaming package (2024) 



22 
 

2.5.2 Consumer expectations and preference 
 
According to Kailash et al. (2024), OTT services provide consumers with unprecedented 

flexibility, offering access to a massive library of content on-demand. This aligns perfectly 

with modern viewing behaviours, where consumers prioritise the freedom to choose when, 

where, and how they consume content, empowering them to take control of their viewing 

experience. Kailash et al. (2024), argue that a key differentiator in OTT streaming is the 

consumer demand for personalised experiences. Advanced data analytics and algorithmic 

analysis enable platforms to analyse user behaviour and preferences, facilitating the delivery 

of highly customised content recommendations. This focus on personalisation enhances the 

viewing experience, improving content discovery and ensuring a more enjoyable and engaging 

viewing experience for users. 

 

Consumer decision-making regarding subscription services is characterised by a careful 

evaluation of the balance between price and the perceived value of the content offered. To 

effectively cater to the diverse financial interests of their user base, providers differentiate 

themselves through a range of subscription packages, competitive pricing strategies, and the 

inclusion of exclusive content to enhance the overall value proposition for subscribers (Kailash 

et al., 2024), According to Choudury et al. (2020), the core value proposition of a subscription 

service centers on providing subscribers with exclusive benefits that are not readily attainable 

through alternative means, such as ongoing access to products and services and reduced time 

and effort expended on purchasing activities. Healy et.al. (2017), argue that a customer-centric 

approach is essential for a successful business model. Companies must prioritise consumer 

perceptions and interactions at every touchpoint to ensure a positive and engaging customer 

experience. 

The value proposition is a multifaceted concept encompassing various elements that deliver 

unique benefits and address specific consumer needs. Osterwalder & Pigneur (2010), argue 

that an effective way to deliver a value proposition is by providing an attractive pricing model. 

Understanding consumer expectations and preferences is essential for OTT platforms to attract 

and retain users. These insights drive platform strategies, from content creation to user 

experience optimisation. 

 



23 
 

2.5.3 Perception of content quality 
 
According to Joyeeta  et al. (2024), customer satisfaction with OTT platforms is influenced by 

a range of factors, including available viewing space, usage time, content quality, and preferred 

device usage. Demographic factors, such as age group, occupation, city of residence, and 

income level, exert a significant influence on the utilisation of OTT platforms. The majority of 

OTT services operate on a subscription-based model, offering limited free content while 

requiring a monthly subscription fee for access to premium content. 

 

Unlike non-OTT outlets like cable TV, content from OTT platforms can be accessed on the go. 

OTT videos and audio can be viewed not only on TVs but also on internet-connected devices 

such as PCs, laptops, and mobile devices. Additionally, some gaming consoles also support 

OTT streaming (Vivek et al, 2023). Compared to traditional media, content on OTT platforms 

is perceived as more creative, unique, innovative, and accessible. Additionally, customers 

subscription is often cheaper to access a variety of content (Vivek et al, 2023). 

 

Content quality is a critical factor influencing customer satisfaction and loyalty to OTT 

platforms. Customers evaluate content quality based on various dimensions, which shape their 

perception and determine their preference for specific platforms. Unique and original content, 

such as Netflix Originals (Blood & Water) or Showmax exclusives (The Wife), is a major draw 

for customers. Consumers value exclusivity, which differentiates one platform from another. 

 

2.5.4 Accessibility and Affordability of content  
 

Jose (2020), argue that the emergence of Over-the-Top (OTT) platforms has significantly 

intensified competition among content creators and technology firms. This heightened 

competitive environment has resulted in a decrease in the cost of content and services, making 

high-quality content more readily accessible to consumers. According to Gupta (2020), 

furthermore, increased competition within the streaming market has resulted in a substantial 

increase in the number of available services, providing users with a more diverse range of 

content options. Moreover, the intensified competition has spurred the development of more 

sophisticated technologies, leading to a significant enhancement of the user experience. 

According to Vivek et al. (2023), in the Indian market, OTT content producers are actively 

exploring a range of monetisation strategies. While advertising currently serves as the primary 

revenue stream for many platforms, efforts are underway to develop compelling product and 



24 
 

service offerings with the aim of incentivising free users to upgrade to premium subscriptions. 

Vivek et al. (2023), argue that OTT platform content is frequently perceived as exhibiting 

greater creativity, uniqueness, and innovation compared to traditional media offerings. 

Furthermore, a significant portion of content available on OTT platforms can be accessed 

without a subscription, offering viewers greater flexibility and affordability compared to 

traditional subscription-based models. 

Vivek et al. (2023), clarify that to effectively cater to the growing customer base on Over-the-

Top (OTT) platforms, production companies and film studios are strategically developing 

content specifically for these platforms. This shift enables viewers to stream content that was 

previously exclusively available through traditional television channels, mirroring the 

successful model of platforms such as Disney+. Accessibility and affordability are pivotal in 

driving the adoption and sustained use of OTT platforms. These factors determine how easily 

users can access content and whether it aligns with their financial means, especially in cost-

sensitive markets like South Africa. 

2.6 RELATIONSHIP BETWEEN SOCIAL INFLUENCE AND THE 
BEHAVIOURAL INTENTION  

 
2.6.1 Theoretical Frameworks  
 
The Technology Acceptance Model 2 was Applying TAM2 to investigate the effects of Over-

the-Top services on subscription television providers in South Africa will help to understand a 

broader range of factors influencing consumer adoption as seen below on Figure 2-5. The 

Technology Acceptance Model 2 (TAM2) offers a valuable framework for managers to 

understand user perceptions and acceptance of technology. This model, depicted in Figure 2-5 

integrates perceived usefulness and functional goals with social influences and subjective 

structural processes to provide a comprehensive understanding of user behaviour. 



25 
 

 

Figure 2-5: Technology Acceptance Model 2 

                                           Source: Venkatesh and Dacis (2000) 

 

According to Mei-Ying et al. (2011), the Technology Acceptance Model 2 (TAM2) 

incorporates the influence of subjective norms, voluntariness, and image on user acceptance. 

The intricate interplay among these constructs constitutes a significant determinant of user 

acceptance or rejection of innovative systems. Furthermore Mei-Ying et al (2011), explain that 

TAM 2 proposes that subjective norm, defined as an individual's perception of social pressure 

to perform or refrain from a specific behaviour, plays a crucial role in mediating social 

influence processes. This concept is consistent with the Theory of Planned Behaviour, which 

also acknowledges the significant impact of subjective norms on individual behaviour. 

According to Seyed et al. (2011), the TAM2 model incorporates a range of factors, including 

subjective norms, image, voluntariness, and experience, as well as perceptual factors such as 

job relevance, output quality, and result demonstrability. Within this framework, subjective 

norm exerts a significant direct influence on perceived usefulness and an indirect influence on 

the intention to utilise the technology. The TAM2 represents an extension of the original 

Technology Acceptance Model (TAM), incorporating the crucial factor of social influence. 

This refinement allows for a more nuanced and comprehensive understanding of the factors 

influencing perceived usefulness and user acceptance (Seyed et al., 2011). 



26 
 

The TAM2 extends the original TAM by incorporating additional factors such as social 

influence and cognitive instrumental processes to better understand technology adoption. 

Applying TAM2 to OTT platforms provides insights into the factors influencing consumer 

acceptance and use of these services. The TAM2 provides a robust framework for 

understanding and enhancing the adoption of OTT platforms. By focusing on perceived 

usefulness, ease of use, and social influences, while simultaneously addressing the unique 

challenges of the local market, OTT providers can optimise their strategies to effectively attract 

and retain a loyal user base in the competitive and dynamic OTT market. 

2.6.2 Social influence and consumer perception 
 
According to Dzaa et al. (2022), Social influence has been recognised as a crucial factor within 

the diffusion of innovations literature. Support from significant others exerts a significant 

influence on potential adopters, as individuals tend to align their attitudes, behaviours, and 

beliefs with their social context. Innovation inherently involves a degree of uncertainty 

regarding its potential impact on potential adopters. This inherent uncertainty can create 

discomfort among potential users, prompting them to seek social validation by interacting with 

their social networks to discuss adoption decisions, influenced by social and normative factors 

(Dzaa et al., 2022). 

 

Stafford et al. (2004) highlighted the significant influence of close contacts and respected 

individuals on adoption decisions. Potential adopters are heavily influenced by the adoption 

experiences and opinions of those whose opinions they value. According to Geurin & Burch 

(2017), Studies have demonstrated that social media followers are not merely passive recipients 

of promotional messages. Rather, they actively participate in the creation of shared meaning 

around products through their interactions within the social network.  

 

According to Ferreira (2020), OTT services, including Showmax, DSTV streaming and 

Netflix, remain competitive in attracting subscribers. Smaller streaming providers are also 

entering the market, aiming to expand their market share and influence the subscriber base of 

traditional subscription TV services. In South Africa OTT platform like Netflix have shown a 

significant growth and Multichoice 2023/2024 financial statement has displayed significant 

decrease is subscriber base as Customer retention strategies are crucial in traditional 

subscription TV to enhance revenue growth.  



27 
 

Social influence plays a pivotal role in shaping consumer perceptions and driving the adoption 

of Over-the-Top (OTT) platforms. User perceptions of value, trust, and relevance are 

significantly influenced by social interactions. By effectively leveraging word-of-mouth, social 

media, and influencer marketing, while proactively addressing challenges such as content 

overload and effectively managing consumer expectations, OTT providers can leverage the 

power of social influence to drive adoption and foster long-term customer loyalty. 

 

2.6.3 Comparative analysis OTT vs Traditional television.   
 

Christenson (2017), outline that the emergence of Video-on-Demand (VOD) services, 

alongside the expansion of channel offerings within the traditional subscription TV market, has 

created a significantly more complex media landscape. This dynamic environment presents 

significant challenges in effectively meeting the evolving preferences and needs of subscribers. 

The introduction of Video-on-Demand (VOD) services in South Africa has raised significant 

questions regarding their impact on the future of traditional subscription television. Key 

considerations include the extent to which VOD will replace or complement existing services, 

as well as the identification of necessary investments and the implementation of process 

digitisation to enhance subscriber satisfaction and maintain a competitive advantage (Chen, 

2017). 

 

According to Gupta and Singharia (2021), The COVID-19 pandemic has significantly 

accelerated the migration of subscribers towards OTT services. In response, traditional 

subscription TV providers are implementing a range of retention strategies, including 

initiatives to enhance subscriber engagement and the introduction of innovative products and 

services to enhance the overall value proposition for existing subscribers and maintain their 

loyalty. According to Oracle (2021), Traditional television consumption in South Africa 

primarily involves linear television, where programming is broadcast according to pre-

determined schedules established through contractual agreements between distributors and 

service providers. This includes free-to-air services, such as the public broadcaster, the South 

African Broadcasting Corporation (SABC), which requires an annual license fee of ZAR 

265.00 from viewers.  

 

Additionally, commercial broadcasters like ETV and Open View, owned by EMedia Holdings, 

operate within the free-to-air landscape. Furthermore, South Africa has a pay-TV market, 



28 
 

dominated by DStv, a subsidiary of the MultiChoice Group, with over 20.1 million subscribers 

across the African region (MultiChoice Group, 2020). The introduction of television 

broadcasting in South Africa commenced in 1975 with the establishment of a single channel 

by the state-controlled South African Broadcasting Corporation (SABC). This initial service 

was not funded through a subscription model but rather relied on a television license fee 

imposed on households owning a television set. Subsequently, an advertising-based funding 

model was introduced to supplement revenue (SABC, 2021). 

 

The South African subscription TV industry was inaugurated in 1985 by M-Net, a subsidiary 

of the Naspers group of companies. In 1995, Naspers established MultiChoice, launching DStv 

as the first satellite subscription TV service in Africa. MultiChoice has since emerged as the 

dominant player in the African pay-TV market, boasting a subscriber base exceeding 8.9 

million as of 2021 (MultiChoice Group, 2021b). 

 

According to Nokuphiwa and Robertson (2020), they argue that while research conducted in 

other markets suggests a potential correlation between the adoption of OTT TV services and 

traditional pay-TV subscriptions, this relationship remains unclear within the South African 

context. This study aimed to conduct a rigorous investigation into the impact of OTT TV 

services on traditional pay-TV subscriptions in the South African market, providing valuable 

data to inform regulatory decision-making processes. A significant shift in consumer behaviour 

is evident, with a growing trend towards cord cutting, characterised by the abandonment of 

traditional pay-TV services in favour of OTT platforms. Furthermore, a substantial segment of 

consumers are engaging in cord-shaving, downgrading their premium pay-TV subscriptions to 

less expensive packages while concurrently subscribing to OTT services. Additionally, a 

notable segment of consumers, known as 'cord-nevers,' have never subscribed to traditional 

pay-TV services and have directly adopted OTT platforms as their primary source of 

entertainment, signifying a fundamental shift in consumer preferences (Nokuphiwa and 

Robertson, 2020).  

 

Davis and Zboralska (2017), explain that Video-on-Demand (VOD) services utilise disruptive 

technologies, including big data analytics and artificial intelligence, to deliver a highly 

personalised viewing experience for each subscriber. These platforms enable users to create 

personalised playlists and profiles, while simultaneously ensuring user-friendly interfaces to 

optimise accessibility and enhance the overall user experience. The rise of OTT platforms has 



29 
 

transformed the media consumption landscape, challenging the dominance of traditional 

television. A comparative analysis highlights the differences and advantages of each format, 

focusing on content delivery, consumer preferences, technology, and market trends. 

 

2.6.4 Role of Social media and digital communities 
 
Chu (2021), argue that the advent of digital technology has facilitated the evolution of 

traditional word-of-mouth marketing, giving rise to electronic word-of-mouth (e-WOM). This 

digital phenomenon leverages social media platforms to facilitate the rapid and widespread 

dissemination of information. User-generated content (UGC), created and shared by online 

users, plays a crucial role in this process, effectively spreading information about products and 

services within online communities. The emergence of social media and electronic websites 

has facilitated the emergence of social commerce, enabling two-way communication between 

businesses and consumers. Rehmani and Khan (2011), conducted research in Pakistan, 

investigating the factors influencing consumer purchase intentions, with a particular focus on 

seller-created content, electronic word-of-mouth, perceived quality, and knowledge 

acquisition. Their findings demonstrated that social media exerts a significant influence on 

consumer purchase intentions, with platforms such as Facebook and Twitter effectively utilised 

to enhance purchase intent. 

 

According to Kaplan and Haenlein (2010), the rise of social media platforms has precipitated 

a paradigm shift in audience engagement, transitioning from passive consumption to active 

participation. This emphasis on visual communication aligns seamlessly with the aesthetic 

focus of OTT platforms. The impact of Instagram extends beyond mere engagement, 

encompassing content discovery, brand promotion, and the fostering of vibrant digital 

communities (Krieger and Systrom, 2012). According to Harry and Vijayakumar (2024), the 

convergence of transformative forces positions Instagram as a key catalyst for the growth and 

impact of Over-the-Top (OTT) media. The intertwined evolution of these platforms reflects a 

symbiotic relationship that is fundamentally reshaping media consumption patterns and 

redefining audience engagement. 

Social media and digital communities have become critical drivers for the growth and success 

of OTT platforms. By creating opportunities for content discovery, user engagement, and brand 

advocacy, these platforms shape consumer behaviour and drive the popularity of OTT services. 

 



30 
 

2.7 CONCEPTUAL FRAMEWORK 
 
Drawing upon a comprehensive review of relevant literature and established theoretical 

frameworks, this study constructed a conceptual framework to examine the influence of social 

factors on consumer intent to adopt Over-the-Top (OTT) services in lieu of traditional 

subscription television. This framework is presented in Figure 2-6. 

 

Figure 2-6: Hypothesis development 

Source: Author 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 



31 
 

The following framework for hypothesis was developed as per Table 2-3: Hypothesis 
framework. 
 
Table 2-3: Hypothesis framework 

RO# Research Objective Hyp# Relationship Hypothesis 

1 

Examining how the ease of 

use of OTT platforms, 

coupled with the clear benefits 

of using them, influences 

consumer decisions to switch 

from traditional TV. 

H1a OTTE1 South African customers favouring OTT platforms 

for their diverse content are more likely to switch 

from traditional subscription TV. 

H1b OTTE2 South African customers who see OTT platforms 

as more cost-effective are more likely to switch 

from traditional subscription TV. 

H1c OTTE4 South African customers who find OTT platforms 

more convenient and flexible are more likely to 

switch from traditional subscription TV. 

2 

Understanding how useful 

customers find OTT services, 

in terms of content relevance 

and quality in South Africa. H2a 

OTTE3 

South African customers who find OTT platforms 

easy to use and navigate are more likely to switch 

from traditional subscription TV. 

3 

Understanding how useful 

customers find OTT services, 

in terms of content relevance 

and quality in South Africa. H3a OTTS1 

South African customers who perceive social 

pressure from friends, family, and social circles to 

adopt OTT platforms are more likely to intend to 

switch to OTT services. 

H3b OTTS2 

South African customers who perceive the use of 

OTT platforms as enhancing their social image are 

more likely to intend to switch to OTT services. 

4 

Explore the relationship 

between social influence, and 

the behavioural intention to 

adopt OTT services over 

traditional subscription 

television. H4 OTTC1 

South African customers who find OTT content 

more relevant to their interests are more likely to 

switch from traditional subscription TV. 

4 

Explore the relationship 

between social influence, and 

the behavioural intention to 

adopt OTT services over 

traditional subscription 

television. H5 OTTI1 

There is a significant positive relationship 

between perceived social influence and the 

intention to adopt OTT services among South 

African customers. 

 



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2.8 CONCLUSION 

This chapter thoroughly examined existing research on Over-The-Top (OTT) platform 

adoption and usability, focusing on what drives customer perceptions and their intentions to 

use these services. The study explored factors like ease of use, how customers view OTT 

services, their perceived value, and how social influence affects usage. It also created a 

conceptual framework, based on these findings, to provide a theoretical foundation for our 

study. This framework integrated key insights from the literature, offering a structured way to 

understand user adoption and behaviour within the OTT landscape. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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CHAPTER  3. RESEARCH METHODOLOGY 

3.1 INTRODUCTION 
 
This chapter presents the methodology which was applied to conduct this study which consisted 

of various stages namely; research design, research methodology, data collection, data analysis, 

the pilot of the study, validity and reliability and ethical consideration. The methods of the 

study will define sources of data, strategies used for sampling and instruments used to collect 

data.  

3.2 RESEARCH DESIGN 
 
According to Saunders et al. (2009), the research design section provides a crucial overview of 

the chosen research methods and the rationale underlying their selection. Research design 

serves as a foundational framework for the effective conduct of research. As noted by Akhtar 

(2016), four primary research designs can be identified: explanatory, exploratory, 

experimental, and descriptive. Explanatory research, as defined by Saunders et al. (2009), aims 

to establish causal relationships between variables, exploring reasons, identifying causes, and 

providing evidence to support or refute predictions. Akhtar (2016) further characterises 

explanatory research as an exploration of uncharted territory, investigating phenomena that