Determinants of satisfaction, loyalty and willingness to pay in subscription based streaming services

Abstract: In an era of rapid change the multimedia content distributors have seen business model after business model become obsolete because of piracy. The rise of subscription based streaming services using a business model of a monthly subscription with access to a large library of content has brought hope of a promising future.But little is know of what qualities customers value in these new innovative services. By using conventional methods of creating marketing scales and by adapting existing measurements this research paper aims to explore the phenomena and find the determinants of customer satisfaction, loyalty and willingness to pay.An extensive pre-study was performed using the internet forum reddit and together with HBO and Cmore films a number of dimensions was found. A quantitative study was performed and confirmed four main dimensions explaining satisfaction: Quality of the content, Quality of the accessibility, Quality of the experience and Price. The link between satisfaction and loyalty was confirmed but any link between satisfaction or loyalty and willingness to pay could not be found. Willingness to pay was however influenced by a reference price of what the customer is currently paying.