Streaming Competition Between Broadcasters’ Content Libraries and SVOD Services: Relative Advantage, Substitutability, and Their Impact on Usage

This study explores the impact of strategic product characteristics (content quality, system quality, brand perception, and price value) on the consumers’ perceptions of the relative advantage and their intention to use different types of streaming services — either so-called content libraries based on linear television channels (e.g., BBC iPlayer, ZDF Mediathek) or pure play streaming providers (e.g., Netflix, Amazon Prime Video). Employing structural equation modeling on survey data from 2,009 streaming users in Germany, the study underscores the significance of content quality, brand perception, and perceived substitutability in shaping usage intentions. Practical implications for managers navigating the evolving streaming landscape include the potential of content-related differentiation approaches. These become more critical when streaming providers assess the optimum mix of original and repurposed broadcast/cable content or consider setting up new streaming services based on “legacy” content.