Telematics and Informatics 69 (2022) 101797

Contents lists available at ScienceDirect

Telematics and Informatics

journal homepage: www.elsevier.com/locate/tele

Assessing the factors influencing the adoption of over-the-top

streaming platforms: A literature review from 2007 to 2021
Tausif Mulla
Westford University College Faculty of Business Management Sharjah United Arab Emirates
, , ,

A R T I C L E I N F O A B S T R A C T

Keywords: Internet access has changed media communication forever and reshaped the business models of
Over-the-top mobile carriers and Pay-TV companies alike. A growing number of studies have addressed this
Streaming services trend emerging in the media and entertainment industry. However, a substantial part of this
Pay-TV
research lacks systemization and categorization and there is a tendency to start anew with every
Cord-cutting
Cable TV
study. As such, it is imperative to assess current knowledge in this area. Today, consumers are
increasingly expecting personalized content at their fingertips anytime and anywhere as com­
panies such as Uber and Airbnb redefine on-demand access to services. Because of it, entertain­
ment and media companies along with the entire value chain from content production to
aggregation and distribution are undergoing unprecedented change in this direct-to-consumer
(D2C) environment. This shift in media consumption is driven primarily by the rise of Internet-
driven, over-the-top (OTT) streaming platforms that bypass the traditional distribution chan­
nels. Accordingly, a review of current literature spanning 2007 to 2021 identified twelve factors
influencing the adoption of OTT platforms. This literature review is the first one in the domain of
over-the-top media to identify the influencing factors across the streaming platforms. The factors
included content, price, flexibility, convenience (perceived ease of use), perceived usefulness,
perceived enjoyment (hedonic motivation), desire to be freed from any constraint, entertainment
value, socialization, culture inclusion, binge-watching, and self-efficacy that leads to the adoption
of OTT streaming platforms.

1. Introduction

The proliferation of the internet has had a profound effect on media consumption. Streaming services like Netflix, Amazon Prime,
Disney+, and Hulu are replacing cable TV companies as the go-to medium for entertainment. It is now well established from various
studies that families no longer schedule their chores to view a show or movie, as for the past 40–50 years (Green, 2008); (Lotz, 2007) .
The ongoing datafication of television with personalized recommendations and dynamic catalogs has led to increased companies
offering subscription services. According to Jones, (2009), the number of devices capable of supporting digital media has increased
along with an increase in internet access speed, offering consumers the ability to interact anywhere without worrying about the re­
strictions on what they can watch and do. Moreover, the media industry’s future is undoubtedly in question as it gradually becomes
uncertain who will produce, transmit, or distribute content.
In 2008, when Smart TVs were first introduced in stores, there were only 5 million subscribers to Netflix and Hulu combined. This
number has crossed over 100 million as digital distribution continues its domination across platforms like Amazon Prime Video, Hulu,

E-mail address: tausif@westford.org.uk.

https://doi.org/10.1016/j.tele.2022.101797
Received 1 August 2021; Received in revised form 20 January 2022; Accepted 28 February 2022
Available online 1 March 2022
0736-5853/© 2022 Elsevier Ltd. All rights reserved.
T. Mulla Telematics and Informatics 69 (2022) 101797

Disney+, and HBO Now, which offer unlimited streaming for an annual fee (Westcott, 2019; Westcott et al., 2019). Television is no
longer one-directional but has successfully bridged the interactivity of the internet with social viewing. In contrast to networks or
schedules, television is gradually distributed through platforms and interfaces. The evolution of the television has enabled it to be
much more than a live feed entertainment system. With internet transmission, families can use their TV for games and web browsing as
well. Technology change has allowed viewers to engage with content without limits or boundaries while precisely getting what they
want. In addition, the emergence of Direct-to-Home (DTH) technology has revolutionized the way we enjoy high-quality and on-
demand content (Koul et al., 2020; Kumar et al., 2020). As of today, technological advancements have made movie or TV watching
more convenient through online streaming. There are now many ways to watch movies and television series that it’s challenging for
viewers to keep track of. With the rise in popularity of Video on Demand (VoD), those who want a premium viewing experience
without paying cable prices may turn their attention towards streaming content from over-the-top applications such as Netflix, Airtel
Xstream, Switch TV, Disney + and more.
In the last decade, the distinction between Over-the-Top (OTT) and traditional television has blurred. The rise in online streaming
services results from the popularity that these platforms have gained over recent years. However, OTT service providers are now seen
as competitive with traditional broadcasting companies, with their ability to offer direct live-streamed and on-demand content from
any device for an affordable price. As per the report ‘Entertainment Goes Online’ by the Boston Consulting Group, revenues from OTT
platforms have seen a compound annual growth rate (CAGR) of over 40% for the period 2007–2017 and are expected to grow by 20%
in 2017–2023 (Samtani and Jindal, 2018). The popularity of OTT platforms has changed consumers’ viewing habits. The internet
economy has witnessed rapid growth in the past two decades, and technological innovation has led to a new generation of OTT
platforms. Previous studies reveal functionalities offered by OTT services such as convenience, preference, flexibility, and cost-benefit
may lead to cord-cutting (Bhullar and Chaudhary, 2020; Cha, 2013; Massad, 2018; Park, 2019) . However, Udoakpan and Tengeh
(2020) claimed that online video streaming does not significantly influence pay-TV viewers. Their findings also reveal that OTT and
television have high similarities in entertainment and ease of use. Another study by Kim and Kim (2020) claims that recommendations,
lack of self-control, and lack of consumption may lead to the adoption of streaming platforms like Netflix or YouTube. Bouwman et al.
(2014) findings show that using Mobile TV creates a significant correlation to active viewing behavior.
From past studies, OTT is replacing Pay-TV, but what remains unclear is the factors that are leading consumers to adopt various
services and not just video. This paper aims to critically review the factors that determine the adoption of streaming services. The
literature reviewed was from four different angles on the industry and its environment. The classification of over-the-top media has
seen significant research in recent years (Banerji et al., 2015; Capon, 2019; McCaffrey et al., 2020) , but there are still many unknowns
because of constant changes occurring within it. The overall ecosystem for OTT service providers includes many players that offer high-
quality content at low cost or even free. Research into the reasons behind the surge of OTT also shows an increase in demand for higher
bandwidth internet connections worldwide coupled with increased awareness among consumers about digital streaming technologies -
all factors leading towards greater adoption (Bhullar and Chaudhary, 2020; Madnani et al., 2020). Through this literature review, the
researcher hopes to provide a clearer picture of the current research state of the factors influencing the adoption of over-the-top
streaming media services. This review provides insight into the key areas where further exploration will provide new results.

2. Research questions

Given this rationale for the review, the researcher approached the literature analysis with two overarching questions in mind:.

1) What is over-the-top (OTT), and how is it defined and classified within media literature?
2) What are the factors that lead to the adoption of OTT streaming media platforms?

3. Method

The following section presents a detailed description of the research method, including an in-depth explanation of the procedure for
data collection. A narrative literature review has been carried out to describe and discuss this topic from a conceptual perspective
(Ferrari, 2015). At the initial screening stage, articles were included if they had titles and keywords indicating that it was about over-
the-top streaming media. Then, in the abstract screening phase, only those articles were included that pertained to the adoption of
streaming media or over-the-top media. Finally, the full-text articles of the accepted abstracts were screened for eligibility.

3.1. Search strategy

Data collection aimed to identify empirical studies, including quantitative, qualitative, mixed-method studies, and literature re­
views, published in peer-reviewed journals and industry reports within the period of January 2007 to May 2021. For an article to be
included in this review, the researcher focused on over-the-top media as a critical variable or subject area. The study used ProQuest and
Scopus databases literature search. Keywords comprised over-the-top, OTT, cord-cutting, and streaming media with the boolean
operator ’OR’ to keep the search broad. In addition, the researcher examined the reference lists of all retrieved articles to identify
additional literature that was not included in the database search. Lastly, only the articles in English were considered.

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3.2. Inclusion criteria

The starting point was set to the year 2008, when Netflix shifted into streaming media and the industry coined the term over-the-
top streaming. Articles were required to meet the following inclusion criteria:.

1) Research content — the primary matter of the literature should be about over-the-top streaming media,
2) The articles had to fall within the 2007–2021 time frame,
3) The article had to be in English,
4) The article must be a conference paper, journal article, book, or industry report.

The selection process of the articles to review was rigorous. In the first round, the titles and abstracts were screened for relevance,
studies that passed were analyzed based on the research question, and results were organized into tables based on their findings. In the
second round, only studies meeting these requirements were considered, eliminating those without full text available or not in the
English language. In the third round, the researcher reviewed all of their findings and determined the ones included in this study.

3.3. Search results

The researcher has reviewed 114 articles published across 68 academic journals, 10 conference papers, and 13 industry reports on
over-the-top streaming media. Looking at the publications trend in Fig. 1, 2015 was a tipping point where online streaming media went
from being an idea to its research stream.
Furthermore, Table 1 summarizes the identified studies, in alphabetical order of the author’s surnames, along with the key themes
addressed in the study.

4. Literature review

Over-the-top (OTT) streaming market is considered an infant industry. The definition of OTTs is still being widely debated in
academic literature and among experts. This has been because of multiple definitions proposed depending on the platform or region
being discussed. Despite some disagreement over its definition, some consensus in recent times has been that OTT platforms compete
with traditional Pay-TV providers by offering an alternative, available internet content delivery mechanism for TV programming (ITU,
2019). According to the U.S. Federal Communications Commission (FCC), “an OTT is defined as an online video distributor that
delivers video programming content to consumers over the Internet” (Commission, 2015). Similarly, other researchers have explained
it as a content distribution channel (Gupta and Singharia, 2021; Yoo et al., 2021) . In other words, content is delivered over the top of
the proprietary set-top boxes. However, all the definitions in the current literature are limited to video and do not include other
streaming services like music, games, or VoIP. The researcher believes the term will further develop with its penetration across the
markets and segments. Because there is no definition within media that encompasses other types, the author defines over-the-top
media as any form of media delivered to end-users through a digital channel, e.g., mobile apps, web browsers, or other digital devices.

Fig. 1. Frequency of over-the-top publication.

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Table 1
Key themes addressed in the literature.
Author/s and year of the study Key themes addressed

(Malewar and Bajaj, 2020) | (Bhullar and Chaudhary, 2020) | (Lobato and Lotz, 2020) | (Gupta and Singharia, 2021) | ( Price
Lee et al., 2016) | (Westcott et al., 2021)
(Westcott et al., 2019; Westcott, 2019) | (Cha, 2013) | (Joohyeon (Kim, 2018) | (Kim and Kim, 2020) | (Chen, 2019) | ( Content
Dasgupta, 2019) | (Madnani et al., 2020) | (Malewar and Bajaj, 2020) | (Strnadová, 2019) | (Sundaravel and
Elangovan, 2020)
(Massad, 2018) | (Li, 2020) | (Qiu and Cui, 2010) | (Lee et al., 2018) | (Dasgupta and Grover, 2019) | (Westcott et al., Flexibility
2019; Westcott, 2019) |
(Davis, 1989) | (Bhullar and Chaudhary, 2020) | (Dasgupta and Grover, 2019) | (Mavale and Singh, 2020) | (Malewar and Convenience / Perceived Ease of
Bajaj, 2020) | (Sundaravel and Elangovan, 2020) Use (PEOU)
(Davis, 1989) | (Bhullar and Chaudhary, 2020) | (Venkatesh and Bala, 2008) | (Malewar and Bajaj, 2020) | (Sundaravel Perceived Usefulness (PU)
and Elangovan, 2020)
(Kim and Kim, 2020) | (Malewar and Bajaj, 2020) | (Venkatesh et al., 2012) | (Bhullar and Chaudhary, 2020) Perceived Enjoyment/Hedonic
Motivation
(Yoon et al., 2021) | (Bhullar and Chaudhary, 2020) | (Yoo et al., 2021) Desire to be freed from any
constraints
(Allam and Chan-Olmsted, 2020) | (Anthony and Falzon, 2020) | (Qiu and Cui, 2010) Entertainment Value
(Anthony and Falzon, 2020) | (Malewar and Bajaj, 2020) Socialization
(Steiner and Xu, 2020) | (Kim et al., 2020) | (Lee, 2020) Cultural Inclusion
(Jenner, 2016) | (Shelton et al., 2016) | (Yoo et al., 2021) | (Sobral, 2019) | (Dasgupta, 2019) | (Watson, 2020) Binge-watching
(Mazzoli and Uricchio, 2015) | (Dasgupta, 2019) | (Anthony and Falzon, 2020) | (Dasgupta and Grover, 2019) Self-efficacy

4.1. Over-the-Top ecosystem

4.1.1. Content provider

With the changing landscape, over-the-top services are not only limited to video content but now include music, gaming, shopping,
fitness, and education. For instance, Dangbei Fitness is a sports application designed for home-based workouts; TV Taobao offers online
shopping on intelligent TVs; or Byju’s learning for synchronizing classroom teaching at home; all provide different content under the
ecosystem.

4.1.2. Regulator
In the media and entertainment (M&E) industry, content creators are licensors, and OTT services are licensees. As the adoption of
these platforms increases, consumers find themselves without protection from unfair practices by the service providers. Regulatory
bodies are now framing policies to protect both parties. For instance, the State Administration of Radio, Film, and Television of China
released the ‘Internet TV Service Management Specification’ and ‘Internet TV Integration Business Management Specification’ as a
policy that binds each smart-TV with the integrated business license before it can be sold in the market. In China, with this policy in
place, the upstream and downstream of the OTT industry chain are more closely bonded, and it has established relationships with
licensees to ensure the legitimacy of content output (Li and Sun, 2019). However, it is still a long road, as developing economies still
have not subscribed to the idea of a regulatory framework for the growing industry.

4.1.3. User
The literature on the adoption of streaming services points out the fundamental change in viewing habits across generations.
According to Udoakpan and Tengeh (2020), most viewers in South Africa who adopt OTT services are in the age group of 35–45 and
from low-income backgrounds. However, in the US, generation Z and millennials are more likely to adopt OTT services they grew up
with. Other researchers conquered the same (Anthony and Falzon, 2020); Kim and Kim, 2020; Mulyana, 2019) .

4.2. Impact on consumer behavior

In the over-the-top industry, Netflix is the market leader in growing and mature markets. In the US itself, Netflix is expected to have
over 182.2 million paid subscribers by 2024, followed by Amazon Prime video and Disney+ (Stoll, 2021). These services have become
an integral part of the M&E business that influences buying behavior. Some noteworthy shows include Narcos, The Queen’s Gambit,
Stranger Things, Game of Thrones, and House of Cards, which are pleasingly famous among viewers and have contributed to the
adoption of various OTT platforms. In addition, the viewing behavior towards live TV is changing as consumers are not considering
video-on-demand offered by streaming services (Koul et al., 2020). Today, the average TV viewer does not use most of their bundle,
watching just 0.09% of all linear TV content accessible to them. Focus groups with cord-cutters clarified they value the feeling of
beating the system and enjoying TV without the cable. Consumers are more price-sensitive to expensive cable packages (Alleman and
Rappoport, 2014; (Tefertiller, 2020). This phenomenon has led to cord-cutting and cord-shaving. According to Banerjee et al., (2013),
“consumers become cord-cutters when they cancel their traditional cable television or dish subscriptions and rely on Web-based
streaming to provide televised entertainment” (2013, p. 20), whereas consumers that cut down on their pay-TV plan and add OTT
service are called cord-shavers (Fudurić et al., 2018).

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4.3. Prevailing business models

Consumers are cutting the cable cord in favor of streaming services. With the rise in the adoption of OTT platforms, it is vital to
study the revenue models of these service providers. Currently, there is limited literature on how OTT services make money and could
be a future research topic for consideration. In this review, the prevailing business model among video streaming OTT services are
categorized as a) Ad-based Video on Demand (AVoD), b) Subscription-based Video on Demand (SVoD), c) Transactional Video on
Demand (TVoD), and d) Hybrid Business Models.

4.3.1. Ad-based Video-on-Demand services (AVoD)

AVoD is an ad-based digital video service free to its users. In this model, advertisers can leverage the content for their campaigns
and offset production costs with revenue from ads. AVoD provides an excellent opportunity for advertisers who want to reach au­
diences with targeted messages they care about, and consumers get access to free content. In addition, AVoD services have information
on user demographics that has enabled the accurate targeting of any advertising, also known as the ‘big data’ ecosystem. However,
premium content owners do not want their content to be licensed on AVoD platforms because it receives less revenue from other
market models (Deloitte, 2018).

4.3.2. Subscription-based Video-on-Demand (SVoD)

SVoD is a type of service that allows users to access an entire library of videos with the convenience and flexibility of watching from
their computer, tablet, or smartphone. This option might be preferable to some users as it allows unlimited viewing as long as their
subscription remains active. Netflix and Amazon Prime Video are two examples of SVoD over-the-top media services available today;
however, both have different prices depending on what each subscriber wants out of the experience. In 2007, Netflix pivoted into an
SVoD platform and dominated the market with this model. This is like the traditional cable and satellite TV format, primarily marketed
in packages (Bhullar and Chaudhary, 2020). According to a study by the MAZ system (2020), more than half of US households have an
SVoD subscription. It is a proven model that generates consistent revenue from every user. However, SVoD models are more prone to
subscription canceling because of changes in content, price, or subscription fatigue.

4.3.3. Transactional-based Video-on-Demand services (TVoD)

In a TVoD model, consumers buy or rent content one at a time. It is also known as pay-per-view or pay-per-download. In this type of
model, platforms such as Apple iTunes, Google Play, Amazon Prime, Disney+, and more function as digital retailers where consumers
pay for the content they buy, also known as Electronic Sell-Throughs (EST) (KPMG, 2020). The TVoD model works well for OTT
providers when they do not have enough content in their library to launch as a platform. It is an effective medium for premiering
movies or one-time sporting events. Examples are iTunes, Saavn, UFC, Formula 1, and more.

4.3.4. Hybrid business model

The Hybrid Business Model is not a business model but an innovative way to structure content as an offering. By combining ele­
ments of the three business models, OTT platforms enhance the user experience and provide value for money. Some companies, such as
Disney+, have merged SVoD with TVoD (Deloitte, 2018). For instance, Disney + costs about $7/month and provides TVoD access to
new movies and shows. Similarly, Hulu combines AVoD and SVoD as a value for money offering for the low-level users by allowing
them to pay a nominal charge with ad interruptions to their services, whereas for the high-end subscribers, it does not put ads.

4.4. Challenges faced by the OTT industry

With the rapid growth, the over-the-top industry has got its fair share of challenges. To name a few, these challenges include cost,
content, retention, and regulation & policies. In the US, depending on the service, the acquisition cost of one subscriber comes up to
approximately $200 per year (Park, 2019). For most providers, the subscriber acquisition cost is considerably high, and in most cases,
it overruns content acquisition cost. Similarly, content is at the core of OTT networks, even though it does not appear as the primary
reason to draw audiences. It is clear from past research that if the networks cannot provide the content that audiences want, they
witness subscription cancellation. In addition, viewing content on multiple screens has forced OTT providers to offer several variations
of the same content to compete with a wide range of platforms such as set-top boxes, connected TVs, laptops, smartphones, and game
consoles (Hou and Choi, 2019). Each device has its own media format and video resolution that needs to be matched. Likewise, the
retention of the subscriber base presents a significant concern for OTT networks. It includes offering the content that users demand,
access to multiple quality of content, and the option to skip ads. OTT services need to strive for more content creation and follow
policies to draw new users and retain existing ones. The aim is to have more content and provide a better overall experience to retain
users.
Furthermore, every nation has a regulatory body that frames policies for the industry. In recent years, they have framed specific
policies to regulate the content delivered by OTT platforms. For instance, in India, the rules mandate OTT platforms to classify their
content into five age-based categories — U (Universal), U/A 7+, U/A 13+, U/A 16+, and A (Adult) and, implement parental locks for
content classified as U/A 13 + or higher, and reliable age verification mechanisms for content classified as ‘A’ (Westcott et al., 2021).

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4.5. Factors driving the adoption of OTT streaming services

As digitalization has affected the entire world, so has the consumption of entertainment, and more particularly television. This
change in consumer behavior has led to the phenomenon of ‘cutting the cords’ from traditional TV to over-the-top services such as
Netflix, Amazon Prime, Disney+, Hulu, and more, to watch movies, series, and even live TV. Moreover, the increase in the number of
technologies capable of supporting digital media and increasing internet access speed has provided consumers with an option to access
any type of content at any place. As a result, users have more freedom than ever before to choose what is right for them. There is a
dearth of literature on factors that lead consumers to adopt OTT services. The factors reviewed in this study are not only for adopting
video streaming services, but for adopting all types of OTT streaming services.

4.5.1. Price
With the proliferation of over-the-top services, the consumers have a wide range of price points to decide. Some streaming services
are free, while others charge a monthly subscription rate. As per Bhullar and Chaudhary (Bhullar and Chaudhary, 2020), price in­
fluences the adoption rates and engagement levels with these platforms. In mature markets such as the US, Canada, and the UK, the
OTT landscape is more dynamic. In these markets, the competition is fierce as consumers have more choice to discover content at a
price point that they are comfortable with. Led by media disruptors such as Netflix, consumers can choose from a wide range of options
for content for a fraction of the price of conventional cable TV. This has also resulted in the cutting of cords among viewers. For
example, when Netflix entered Spain and India, it attracted consumers with its low-cost pricing that helped the streaming service gain
many subscribers (Lobato and Lotz, 2020). Furthermore, consumers are adding, sampling, and canceling services in search of the best
value for their time and money.
Similarly, Gupta and Singharia (2021) claimed that the prices cable providers charge to their customers are the essential reason
consumers are cutting the cord and adopting OTT services. In addition, many people are abandoning cable in favor of digital media
options, which offer the flexibility of purchasing only the channels users want and the convenience of accessing them from anywhere.
A study by Lee et al. (2016) showed that consumers switch toward more affordable streaming options due to increased cable TV prices.
A low monthly fee encourages customers to sign up even if they only use it occasionally for specific shows or movies, while high fees
discourage users from signing up because some users do not want to pay without knowing what kind of content will be available on
these sites. In short, content is the king, and the cost is the queen.
Apart from being more affordable than cable TV, consumers are starting to adopt OTT as there is nil installation cost. For a Pay-TV
service, the user needs to consider additional costs in the form of a set-top box (also known as a cable box) and a deposit fee. In
addition, the consumer doesn’t have to pay extra for the internet, this makes OTT even more lucrative as it brings more savings to the
end-user. However, with affordability, the media industry faces the challenge of cancellation. A recent study by Deloitte (Deloitte,
2018) found that more than half of US households have SVoD subscriptions. A proven model generates consistent income from every
consumer. On the contrary, SVoD models are more likely to see subscribers cancel their subscriptions due to content changes, price
increases, or subscription fatigue.

4.5.2. Content
Media content plays a critical role in viewing habits. The digital age has given consumers greater ability to find content that
matters. Additionally, there is also the ability to find content that suits one’s tastes and lifestyle. Streaming services have become more
popular because they offer a broad range of content and original programming that users cannot find anywhere else. Likewise, with the
rise of video and social streaming platforms, users prefer watching video game content. Gaming has become a viewing experience, with
gaming videos on YouTube and Twitch being the most popular platforms. They draw users into this immersive experience as many
games now allow players to watch themselves while they play, a trend that’s only set to grow stronger considering how it can be used
for educational purposes (Westcott et al., 2019; Westcott, 2019).
Digital media has made the landscape more dynamic. Consumers have a plethora to discover content, but they are also finding
value for themselves in this new era of media consumption. It is not surprising that users prefer different platforms for various content.
Cha (2013) distinguished between eight types of video content and examined whether genre type influenced the choice of the platform
being used. The seven content formats are comedy shows, dramas, reality shows, news, documentaries, educational content such as
‘how-to’ programs, and entertainment magazine formats. Further research is needed into many other facets of content to understand
the impact on the adoption of OTT services. According to Kim (2018) and Kim et al. (2020), users rarely want to spend their time
searching through different channels while watching live television but prefer streaming services because they know exactly where all
the movies, shows, or clips are located without having to search for them. The study found that consumers are more likely to use
streaming services if they have access to a wide variety of content. Reality shows were the most popular genre in viewer preferences,
with over 70% preferring this type of programming on an OTT service. The least preferred genres for viewing included education/how-
to programs at 16%.
In 2020, streaming services saw a considerable increase in the subscriber base but decreased new content, with COVID-19 coming
into effect. This has caused many productions to stall, making it harder for streaming providers and the studios they rely on to keep
their audiences engaged. Chen (2019) study confirms sports programs are positively correlated with satisfaction, while news shows
had no significant correlation. In addition, movies or dramas did not show a strong correlation but still seemed more predictive than
any other type of show except for sports ones.

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4.6. 3 Flexibility

Besides cost savings, there are many advantages of watching content via an OTT service. These include the ability to choose which
device users want for access and how much time it takes; having a virtually limitless amount of programming that is available
everywhere; being able to watch in your place whenever you please by using flexible viewing options such as pause/rewind or fast-
forwarding through commercials (Massad, 2018).
Li (2020) study estimates that OTT services will become a strong competitor of traditional mass media because they have more
flexible schedules and a greater variety of content. Likewise, the multi-screen experience offers a variety of options to users who want a
convenient way to watch their favorite multimedia content on the go. Cable companies are increasingly losing revenue because of
streaming services. The latter offers the flexibility of buying only those services the users need, with the functionality that they can
access the content from anywhere. A study by Qiu and Cui (2010) found that as cable prices continue to rise, consumers switch over to
over-the-top streaming services as it is affordable and provide a great viewing experience. Additionally, users can play files simul­
taneously as they are downloaded from servers. The same was echoed by Lee et al. (2018).

4.6.1. Convenience/Perceived ease of use

Perceived Ease of Use (PEoU) is an essential variable in the Technology Adoption Model (TAM). It is defined as “the degree to which
a person believes that using a particular system would be free of effort” (Davis, 1989). The ease of use can be an essential factor in
determining the adoption rate for new technology. If users find it challenging to adopt, they will probably avoid adopting the latest
technologies, like mobile applications and social media networking sites, because they often have complicated interfaces. Whether it is
a new phone, computer, or streaming service such as Netflix, consumers are looking for an easy-to-understand interface that will not
result in frustration and confusion when operating the product. In the era of social media and smartphones, it has never been easier to
access entertainment content. The convenience has created an opportunity for customers looking for a way to stay connected while on
the go or multitasking at home. Technology has made staying connected with favorite shows as easy as ever by providing viewers with
alternative ways to watch their favorite programming without interruptions from any distractions. As these advancements become
common, over-the-top streaming services have offered consumers increased opportunities, such as choice of content and accessibility,
resulting in a great experience.
The convenience factor in previous studies accounts for ease to access over-the-top content, by reducing the number of steps from
subscribing to actual usage. However, according to Bhullar and Chaudhary (2020), convenience is not a significant factor among
current subscribers, but plays an essential factor for new adopters. If users could subscribe quickly, then they were less likely to drop
out prematurely from subscriptions.

4.6.2. Perceived usefulness (PU)

This was defined by Davis as “the degree to which a person believes that using a particular system would enhance his or her job
performance” (1989, p. 320). It means whether someone perceives that technology to be useful for what they want to do. The use­
fulness of new technology is very vital to switch to it. If the user does not find any usefulness in new technological innovation, they will
not adopt that innovative idea and thus understanding how useful OTT media platforms are for users over traditional forms of
communication is imperative when studying people’s attitudes towards them (Bhullar and Chaudhary, 2020). Similar to PEoU, the
perceived usefulness did not show a significant factor among existing users but was a critical factor for new users.

4.6.3. Perceived enjoyment/hedonic motivation

Online subscription services are designed to provide a reliable and convenient service. There are many reasons that consumers use
them, including social, economic, and hedonic motives. However, according to Kim and Kim’s (2020) study, a significant motive for
subscribing is the hedonic motive because of an individual’s desire for pleasure or enjoyment. It is more likely the users subscribe to a
streaming service because of a certain enjoyment level.

4.6.4. Desire to be freed from any constraints

The cord-cutters want to watch any content at their convenience. This desire stems from the need for more control over their own
televisual experience. It is much more convenient to have limitless access to various forms of entertainment in the modern era. The idea
behind this trend is that people want freedom and control over their own experience with no restrictions. It is ultimately about what
the users decide to watch, depending on their preferences and needs.
Cord-cutters are primarily interested in being freed from any constraints related to viewing content not just financially but also
technologically (Bhullar and Chaudhary, 2020; Yoo et al., 2021) .

4.6.5. Entertainment value

The entertainment value is the perceived value related to enjoyment and fun-seeking. As over-the-top services predominantly
belong to the M&E industry, the entertainment value plays a critical role in adoption. Previous researchers have claimed that
relaxation and entertainment value are the primary motives for adopting entertainment devices (Allam and Chan-Olmsted, 2020;
Anthony and Falzon, 2020; Qiu and Cui, 2010) .

4.6.6. Socialization
Lockdown caused by COVID-19 not only led to the adoption of OTT services, but also introduced social viewing in novel ways. For

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instance, Teleparty is an innovative way to watch TV with friends online. It synchronizes the video playback and adds group chat for
any show viewers watch on Netflix, Disney, Hulu, or HBO. With such a system, viewers can sync what they are watching with their
friends and even have conversations about the show as if they were all sitting together. COVID-19 changed millennial and centennial
consumer behavior towards consuming content and resulted in social viewing as a vital driving factor in adopting OTT platforms
(Anthony and Falzon, 2020).

4.6.7. Cultural inclusion

Expatriate consumers can now access their home country’s content in host countries with the expansion of international streaming
services. Research by Steiner and Xu (2020) confirms consumers are more inclined to watch videos and culturally sensitive content
about their culture in host countries. For instance, the Indian community in the middle-east region can now access restricted content on
OTT platforms such as YuppTV, Zee5, and Airtel Xstream. These services offer a wide range of channels, including news, entertain­
ment, spiritual programming, and business, in addition, to live television channels and unlimited on-demand movies. Likewise, the
Chinese community in North America can access restricted content through Hong Kong-based Phoenix TV, which offers it in Mandarin
and Cantonese. They offer live streams of their news programs and sports and kids’ programs on demand. With globalization, culture
inclusion will gain significant importance as a key driver in over-the-top adoption (Kim et al., 2017). Lee (2020) argued that Korean
migrants in the US make themselves feel at home through cord-cutting practices.

4.6.8. Binge-watching
Binge-watching is a growing trend among consumers. It is becoming more and more popular, especially among millennials and
centennials who have grown up with Netflix and YouTube taking over traditional TV viewing habits. In the past decade, binge-
watching has emerged as the preferred method of consuming media content for many people worldwide. The access and availabil­
ity of over-the-top content have created a dedicated group of consumers who can now binge-watch their favorite shows, with the
majority being millennials (Jenner, 2016; Shelton et al., 2016; Sobral, 2019; Yoo et al., 2021). Even baby boomers binge-watch from
time to time. The line between content creation and consumption gets thinner as the entire video delivery ecosystem strives for an
optimal viewing experience. Consumers are experiencing an increased tolerance for hiatus episodes, and they are less likely to resume
a show after discontinuing viewing it (Ganjoo, 2016).

4.6.9. Self-efficacy
Bandura (1986) proposed that a person’s self-efficacy is their judgment of how they would handle the situation, based on what they
have been successful within similar situations.
The self-efficacy of video streaming is rooted in three fundamental needs: the need for mobility, the need for value, autonomy, and
recognition (Anthony and Falzon, 2020; Dasgupta and Grover, 2019; Massad, 2018) .

5. Discussion

Besides establishing the definition, the author presented the key motivational factors in the adoption of over-the-top services that
include: price, content, flexibility, convenience (perceived ease of use), perceived usefulness, perceived enjoyment (hedonic moti­
vation), entertainment value, socialization, culture inclusion, binge-watching, self-efficacy, and desire to be freed from any con­
straints. Increased internet connections, better networks, technological developments, and the availability of smart gadgets have led to
the growth of new OTT media that provide services to viewers directly via the internet (Gupta and Singharia, 2021). Furthermore, the
global lockdown period caused by COVID-19 resulted in a high number of users opting for services. This led service providers to
increase their competition by attracting customers through different strategies, such as discounts and promotions while retaining
existing subscribers with incentives like free trials or early access to new content releases.
Most of the current research and academic literature on new media services focus on critical aspects such as content, customers,
pricing, delivery mechanisms, and support. These are necessary to develop relevant products or services. However, few considerations
have been given in recent years about how these elements interact with each other within an over-the-top ecosystem. Previous research
mainly focused on media displacement (Cha and Chan-Olmsted, 2012), intention to use a specific platform (Cebeci et al., 2019), and
media substitution (Tefertiller, 2018). The KPMG (2020) report on ‘Media and Entertainment Post COVID-19′ suggests that the in­
crease in usage of OTT platforms post lockdown will result in habit formation. The quality of content, convenience, and no adver­
tisements are all factors contributing to an increased satisfaction level for people.

5.1. Viewership across demographics

Consumer culture is influenced by four generations: Baby Boomers, Generation X, Generation Y (or Millennials), and Generation Z
(or Centennials). During the past decade, we have seen TV evolve from traditional linear broadcast networks, cable networks, and
syndicated selections to streaming services, over-the-top (OTT), and connected TV. The following section discusses the influence of
OTT on the four generations. Niosi (2021) classified the generations like Baby Boomers: born between 1946 and 1964, Generation X:
born between 1965 and 1981, Generation Y (millennials): born between 1982 and 1997, and Generation Z (Digital Natives or Cen­
tennials): born between 1997 and today.
In order to understand viewership across generations X, Y, and Z, it is important to take a more nuanced approach. In terms of
audience age groups, Nielsen data showed a sharp decline in viewing traditional TV by younger audiences. Centennials and Millennials

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are watching 40% fewer traditional TV shows than they did 5 years ago, and the time spent watching traditional TV has decreased by
25%. In fact, this decline is not only affecting the younger audience - according to Nielsen’s Total Audience Report, traditional TV
watching has decreased by 13% among Gen Xers as well, while it has remained relatively flat among adults aged 50–64. On the
contrary, Baby Boomers actually increased traditional TV watch time by over 7% in the past five years, showing linear TV viewing
slowed down with age (Nielsen, 2021).
According to Massad (2018), the research literature on OTT is largely dominated by the theme that it was born out of a generational
shift in viewing habits. For instance, Generation Z and Millennials preferred the ad-free model they grew up with, while Boomers and
Matures preferred the subscription model they grew up with. Additionally, advertisement tolerance ranges between seven and fourteen
minutes per hour for all consumers (Westcott et al., 2019; Westcott, 2019).

6. Research model / theoretical framework

For any service to grow effectively, it is pivotal to understand consumers’ values and consumption habits. Considering the digital
transformation that has occurred in the entertainment industry, it has become crucial to understand how to fully leverage OTT
streaming services, namely which factors influence the decision to adopt. The theoretical model that emerged from this review
combines aspects of the theory of reasoned action, theory of planned behavior, technology acceptance model, innovation diffusion
theory, and the Unified Theory of Acceptance and Use of Technology (UTAUT).
As a basis for many other adoption theories about consumer behavior, the Theory of Reasoned Action (TRA) by Fishbein and Ajzen
(1977) is one of the most fundamental adoption theories. In a study by Cesareo and Pastore (2014), variables such as exposure to
music, involvement, interest, and attitude towards online piracy were used to assess consumers’ willingness to try a subscription-based
music streaming service. Similarly, other researchers have used TRA to study the consumer attitude towards adoption of either
streaming services or understanding the behavior of cord-cutting (Cha, 2009); Yang et al., 2017; (Tefertiller, 2017).
Ajzen (1991) developed the Theory of Planned Behaviour (TPB) as an extension of the TRA. It has been used in several streaming-
service adoption studies (Cha, 2009; Cronan and Al-Rafee, 2008; Dörr et al., 2013; Khatibi et al., 2011; Kwong and Park, 2008; Leung
and Chen, 2017) . Likewise, Davis (1989), developed another adaptation of the Theory of Reasoned Action with an emphasis on in­
formation technology. To explain the adoption of new technology, the TAM model is widely regarded as the most effective, precise,
and predictive (Anthony and Falzon, 2020; Bhatt, 2021; Cha, 2013; Lee et al., 2019); Lee et al., 2017; Turner et al., 2010) . There is
extensive evidence on how the TAM and its derivatives (such as TAM2) have been used to adopt streaming services (Anthony and
Falzon, 2020; Gupta et al., 2021).
Furthermore, Venkatesh et al. (2003) introduced a widely used technology adoption model, the unified theory of acceptance and

Fig. 2. Conceptual model.

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use of technology (UTAUT), by combining eight popular models of technology acceptance (theory of reasoned action, theory of
planned behavior, technology acceptance model, motivation model, combined TAM & TPB, model of PC utilization, diffusion of
innovation theory, and social cognitive theory) (Venkatesh et al., 2012). Additionally, UTAUT is cited by various researchers as
providing a deeper understanding of individual behavior to accept innovation than other similar models and theories (Barata and
Coelho, 2021; Chang, 2012; Hino, 2015; Malewar and Bajaj, 2020). The results indicate this model is exhaustive and offers an excellent
framework for explaining the use and acceptance of new technologies, including OTT.
Technology acceptance theories that deal with acceptance at the individual level include the Technology Acceptance Model (TAM),
the Theory of Planned Behavior (TPB), and the Unified Theory of Acceptance and Use of Technology. Whereas, researchers have
frequently employed the diffusion of innovations theory (DOI) to understand how and why individuals adopt new ideas and tech­
nologies (Lallmahomed et al., 2013). This theory suggests that innovations (ideas or technologies that are new to the adopter) diffuse
into the population through a distribution pattern that follows an S-curve. Innovators are among the earliest adopters, followed by
early adopters, then the majority, and finally laggards, who adopt innovations after the initial saturation point has been reached. In the
existing literature, researchers have used DOI theory to understand the adoption of OTT and IPTV (Lee et al., 2015; Lin, 2001; Li, 2020;
Tefertiller, 2020) .
Historically, media researchers have frequently turned to the diffusion of innovation theory to explain why new technologies are
adopted, whereas the Uses and Gratifications (U&G) theory has been used to explain why individuals consume media. Besides motives,
U&G theory describes psychological effects and media selection behaviors (Dasgupta and Grover, 2019; Joo and Sang, 2013; Kim et al.,
2016; Li, 2017; Moore, 2012; Yoo et al., 2021). In the current literature, this model is frequently used to describe how a consumer’s
traditional media consumption behavior changes as a result of new media (Anthony and Falzon, 2020; Greer and Ferguson, 2015; Ha
and Fang, 2012; Khatibi et al., 2011; Song et al., 2020; Steiner and Xu, 2020) .

6.1. Proposed conceptual model for OTT adoption

Using conceptual frameworks facilitates the development of research and helps make sense of the findings. Researchers can develop
a greater awareness and greater perspective of a situation by using a framework to plan and frame their approach. The constructs
proposed in the model are elucidated in the sections above. As a conceptual model, Fig. 2 displays twelve independent variables
(factors/themes), four moderating variables, and one dependent variable identified from the literature and their impact on the
adoption of over-the-top services.
Based on the model above, age, location, and time spent online are moderating variables that affect the impact of price, content,
convenience, self-efficacy, socialization, and binge-watching on OTT adoption. In order to identify and define differentiated motives,
empirical research is necessary through experiments and consumer interviews.

7. Limitations and future research

Based on the existing literature, this paper comprehensively defined the over-the-top streaming media, ecosystem, and prevailing
business models. Moreover, the paper analyzed the influencing factors and constructed a conceptual framework. But like every
research, there are also some limitations to this paper. First, there was a considerable dearth of literature on OTT platforms and their
usage. Second, this study only considered twelve factors that might influence the users’ attitude towards OTT media adoption, but
other factors such as the variety of service, facilitating conditions, demographic variables, and more could be drivers but were not
considered in the literature review. Furthermore, the literature search was extensive, which led to the finding of as many related
studies. However, the findings were limited to results that emerged from databases searched using specific keywords.
Future studies may test the framework suggested in this review and may investigate consumer demand, perceptions, and usage
patterns among OTT users. Similarly, the current literature is silent on how OTT services make money and could be a future research
topic. In order to gain a more cohesive view of OTT platforms, future studies need to gain a more holistic understanding of the over-the-
top platforms from the point of view of different stakeholders.
Furthermore, the existing available literature showcased extensive use of well-known theories & models, but it would be interesting
to test unconventional theories & models of adoption especially related to new age media. Theories such as social judgment theory
(SJT) by Sherif and Hovland (1980), Engel, Kollat & Blackwell model (Chandron, 1979), social cognitive theory by Bandura (1991),
niche theory by Dimmick and Rothenbuhler (1984), media complementarity theory by Dutta-Bergman (2004), and hedonic-
motivation system adoption model (HMSAM) by Lowry et al. (2013) to name a few. In addition, subsequent studies may examine
consumers’ perceptions of, and use of streaming services, as well as the specific economic or cultural factors that facilitate or hinder
consumer adoption. Lastly, through experiments and consumer interviews, empirical research should be conducted to identify and
define differentiated motives.

8. Conclusion

It is evident through the review of the literature that OTT adoption has increased exponentially over the past decade. This paper
aimed to develop a review of the factors that influence the adoption of over-the-top services. The author hopes that this research will
provide insights into what may motivate people to adopt new technologies or behaviors in order for marketers and other technology
providers to serve those needs better. This can be possible only when the users’ adoption behavior is studied intensively and planning
strategies that will bring in more customers and establish long-term relationships. In conclusion, the study takes an incisive look at the

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adoption of why it matters for key decision-makers on both sides (content providers and service operators).

Declaration of Competing Interest

The authors declare that they have no known competing financial interests or personal relationships that could have appeared to
influence the work reported in this paper.

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