Consumer response to OTT subscription promotions in Taiwan: a prospective theoretical perspective

PurposeThis article investigates the impact of consumers' promotion strategies on the effectiveness of promotional campaigns for subscribing to Over-the-Top (OTT) streaming services, from a prospective theoretical perspective. Additionally, it explores the moderating effects of platform type and subscriber type on promotion strategies in the context of OTT streaming services.Design/methodology/approachThis study employs an experimental design to separately examine the promotion strategies of subscribers. The first part investigates the effect of promotion strategies on promotional effectiveness, regardless of platform and subscriber types, while the second part considers the moderating effects of both platform type and subscriber type on promotional effectiveness.FindingsThe analysis reveals that renewed subscribers exhibit a positive attitude toward incremental promotions and have stronger intentions to subscribe and recommend. Nonrenewed subscribers, in contrast, prefer discount promotions, demonstrating a positive attitude toward them and expressing higher intentions to subscribe and recommend.Originality/valueThis study applies prospect theory to OTT promotion strategies, uncovers the psychological drivers behind promotion effectiveness and examines the moderating role of subscriber type and platform type, thereby providing actionable insights to improve consumers' attitudes and behavioral intentions.