Analyzing OTT Platform Churn Rate: A Study of User Discontinuation Intention in Hyderabad audience

Abstract

The rapid rise of Over-The-Top (OTT) platforms has revolutionized entertainment consumption by providing video streaming services through the internet, eliminating the need for traditional cable or satellite TV. In India, OTT adoption has grown due to faster internet connections, affordable data plans, and increased smartphone usage. However, despite this growth, high churn rates remain a challenge, affecting user retention and revenue. This study, “Analyzing OTT Platform Churn Rate: A Study of User Discontinuation Intention in Hyderabad Audience,” investigates the factors driving user dissatisfaction and subscription cancellations in Hyderabad, a region known for its diverse and digitally active population. The research identifies three primary causes of dissatisfaction: content dissatisfaction, perceived overpricing, and perceived system inadequacy. Content dissatisfaction occurs when users find the platform lacking in variety or personalization, while perceived overpricing refers to the subscription cost outweighing the value received. System inadequacy involves technical issues such as buffering, poor interface design, and glitches that hinder smooth usage. A Likert scale questionnaire was used to assess how these factors influence user satisfaction and discontinuation intentions. The study further explores how social influence, especially from friends, family, and influencers, impacts content discovery and user preferences, with younger users being more susceptible to trends and the fear of missing out (FOMO). The findings suggest that OTT providers can reduce churn by offering diverse, regularly updated content, competitive pricing, and user-friendly interfaces supported by efficient delivery systems. Personalization, intuitive design, and targeted marketing strategies also play a crucial role in improving user experience and satisfaction.