Movie characteristics as determinants of download-to-own performance in the Korean video-on-demand market

Abstract

The global video-on-demand (VOD) market is experiencing drastic change due to the rise of over-the-top (OTT) services such as Netflix and YouTube. Traditional Pay TV service providers such as internet protocol television (IPTV) operators and cable TV providers are making efforts to cope with such changes. One of the ways for such providers to remain competitive is to use the proper service models of VODs and the download-to-own (DTO) model can be a very attractive service model for IPTV operators. While many previous studies have examined VOD success, there is a lack of research on the factors that influence VOD success for the DTO model. Thus, this study examined the characteristics of movie VODs as the determinants of DTO performance in the Korean VOD market by analyzing 433 movies offered in 2017 and 2018 via SK Broadband VOD platforms, a major IPTV operator in Korea. The results indicate that G-rated movies, sequel movies, movies with fandom, and those with popular original soundtrack (OST) are likely to have higher sales via a DTO model than other movies. This study provides practical implications for Pay TV service providers, VOD platforms, movie producers, and governments.