How can the pay-TV market retain its users? A critical threat to the pay-TV market with insights from South Korea

Over-the-top (OTT) services have introduced substantial challenges, such as subscriber attrition and declining profitability, to the pay-TV market. As preventing market loss in the pay-TV market is difficult, developing market strategy for retaining current subscribers is critical for survival in the market. This calls for an understanding of how additional OTT subscriptions and their associated increases in household expenditure on media content influence consumer choices regarding pay-TV services. Hence, this study investigates consumer preferences for pay-TV services by considering the introduction of an OTT service market. The results show that only 1.1% of respondents engaging in newly paid OTT subscriptions opt for cord-cutting; however, 8.2% are inclined toward cord-shaving, underscoring it as a more pronounced threat to the pay-TV market. Additionally, revenue loss in the pay-TV market is also analyzed. This study offers insights into forecasting market changes and developing strategic management strategies for the pay-TV market.