The Effect of Subscription Pricing on Customer Retention on OTT Platforms in Ahmedabad City

Abstract

The present study investigates the impact of subscription pricing on consumer perceptions, satisfaction, and renewal intentions regarding Over-the-Top (OTT) platforms in Ahmedabad city. With the rapid digitalization of entertainment consumption, pricing strategies have become a decisive factor influencing user engagement and loyalty. The research employed a quantitative approach using chi-square tests and correlation analysis (p-values and r-values) to examine the association between demographic factors—particularly age—and OTT-related variables such as price fairness, content quality, accessibility, and renewal behavior. Findings revealed that 12 out of 17 hypotheses showed statistically significant associations (p < 0.05), indicating that subscription pricing notably affects consumer attitudes and decisions. Key determinants of satisfaction and loyalty included perceived price fairness, the justification of content quality for the price paid, and users’ reconsideration of renewal following a price increase. Although the correlation coefficients were generally weak (r < 0.2), the consistent pattern of significance emphasizes that pricing perceptions meaningfully shape consumer behavior. The results further suggest that younger consumers are more price-sensitive and responsive to promotional offers, while older users demonstrate stronger loyalty influenced by content quality and ease of access. The study validates the relevance of the Price–Value Perception Theory and Expectancy–Disconfirmation Theory within the OTT context. Practical implications highlight the need for dynamic, segmented pricing models combining affordability with perceived value to sustain user retention in a competitive market