1. Introduction
Born between 1997 and 2012, Generation Z (Gen Z) is emerging as a key consumer demographic with increasing economic influence. Gen Z values reasonable pricing when making purchasing decisions for products or services. However, they do not hesitate to engage in value-driven consumption that aligns with their lifestyle. This consumer behavior differs from that of Generation X, who prioritize practicality and cost-effectiveness [
1]. Gen Z is highly adept at enjoying digital culture and proficient in online environments for buying goods and sharing information. This contrasts with the characteristics of the Millennial generation, who, as digital immigrants, seek a balanced integration of digital platforms and traditional consumption methods [
2]. In particular, Gen Z has a higher understanding of new consumption methods of sharing or using subscription services than owning goods or services.
Similarly, Gen Z’s influence is prominently evident in the realm of OTT (over-the-top) service subscriptions. In South Korea, the usage rates for OTT services like Netflix and Disney Plus saw the most significant increase among Gen Z in 2022 [
3]. Also, Gen Z had the highest rate, at 42%, of using two or more paid OTT services compared to other generations [
4]. This is closely related to the fact that, unlike traditional media, OTT services offer personalized recommendation features and individualized experiences that align with Gen Z’s preferences. Furthermore, Gen Z prefers global, culturally diverse, and trendy content offered by OTT services.
In summary, as digital natives, Gen Z exhibits a high acceptance of digital platforms such as OTT services. Their consumer tendency, shaped by value-driven spending and familiarity with subscription-based services, aligns well with the sustainable business models pursued by OTT service providers. Also, as a key consumer group in the current OTT market, Gen Z’s consumption patterns are driving content consumption trends. Hence, amid fierce competition in the domestic OTT service market, service providers should continuously implement robust retention strategies to sustain Gen Z’s ongoing usage.
Recently, as content acquisition has become more challenging in the OTT service market, providers are increasingly eyeing sports content broadcasting. Compared to dramas and entertainment shows, sports content offers high efficiency in producing lengthy content with fewer resources and costs. In other words, OTT service providers are focusing on sports content to ensure sustainable revenue generation. Notably, Korean sports fans, including Gen Z, show an increasing desire and interest in watching high-level overseas sports league matches. In response, Korean OTT services recognize sports content as a key offering and are dedicating significant efforts to securing broadcasting rights [
5]. Domestic OTT services like SPOTV NOW, Coupang Play, and TVING are strategically increasing their subscriber base and revenue through exclusive sports broadcasting rights for domestic and international sports such as football and baseball. Coupang Play and TVING have rapidly increased the number of new users thanks to sports content, intensifying competition for the second spot in Korea’s OTT user rankings, just behind Netflix.
Yet, as previously mentioned, achieving sustainable growth for OTT service providers requires efforts to convert existing users into loyal customers. Thus, it is crucial to identify specific factors that can lead users to become regular subscribers beyond just providing high-quality sports content. In this regard, the Modified Information Systems Success Model, applicable to deriving success factors for OTT services, highlights system quality, content quality, and overall service quality as crucial factors influencing subscribers’ continued usage [
6]. Domestic research has reported that content diversity, informativeness, and system stability are pivotal in driving the sustained usage of sports OTT services [
5,
7,
8]. With the rapid expansion of the OTT service market, personalized services and AI-driven recommendation systems have emerged as critical factors in enhancing user satisfaction and increasing long-term subscription retention. Higher-quality personalized services have been shown to significantly improve service satisfaction and users’ intention to continue using the platform [
9]. Furthermore, AI-powered recommendation systems can foster user loyalty and strengthen customer relationships [
10]. Personalized AI recommendation features contribute to meeting user expectations in terms of accuracy, diversity, and novelty, thereby exerting a positive emotional influence on users [
11].
Internationally, the quality of Internet infrastructure (e.g., speed, stability) has been recognized as a critical factor influencing the availability of OTT services and the consumer experience [
12]. Additionally, licensing issues and regional content disparities in OTT services can restrict global consumers’ access to content [
13]. From the perspective that sustained user adoption is essential for service providers to maintain competitiveness in the market, exploring specific factors that hinder the continued use of sports OTT services holds significant academic and practical value.
In fact, the growing interest in sports content within OTT services has led to increased academic attention on sports OTT services. Jung, Lee, Yoo, and Choi [
14] mentioned that the diversity and novelty of sports OTT service content statically influence the intention to use. Similarly, Kim, Na, and Lee [
15] stated that content’s novelty, entertainment value, and informativeness significantly impact consumer satisfaction, which in turn affects sustained usage. Also, Choi, Kim, and Hur [
16] argued that perceived entertainment value observed in services like SPOTV NOW positively influences the perceived ease of use and usefulness, ultimately contributing to sustained usage. Internationally, Williams [
17] identified information, convenience, fandom, and cost as key motivations for consuming sports OTT services, while Xu, Li, Scott, and Wang [
18] noted that viewing convenience, ad-free viewing, and service quality impact intention to adopt OTT services. Previous studies predominantly verify relationships among variables related to sports OTT services. Still, there is a lack of direct analysis and explanation of factors that directly discourage sustained usage among sports OTT service users. In other words, while previous studies have primarily focused on users’ intention to adopt OTT services or the initial acceptance factors, this study analyzes the key determinants influencing long-term usage, thereby providing strategic insights for sustained user retention. Furthermore, prior research has generally examined the overall characteristics of sports OTT users or included a broad range of age groups. In contrast, this study specifically focuses on Gen Z’s continued usage intention, addressing an underexplored demographic and contributing to the development of age-specific, tailored strategies for sports OTT services. Therefore, it appears crucial to understand the inherent perceptions regarding factors limiting sustained usage among Gen Z, a high-spending demographic in the OTT service market. Addressing these factors could provide valuable insights for improving service strategies.
The Q methodology is a research method that objectively measures and systematically elucidates subjective perceptions such as personal opinions, values, or attitudes toward specific phenomena. Unlike the R-methodology, the Q methodology focuses on identifying the characteristics of each type derived from the unique subjectivity of the research participants through an inductive approach. In other words, the Q methodology offers a unique approach to analyzing the psychological and subjective constraints of OTT service usage among Gen Z. As mentioned earlier, Gen Z possesses a high level of digital literacy and can readily adapt to rapidly evolving platforms and content. Therefore, their perception of continued OTT service usage is likely to exhibit distinct characteristics compared to other generations. By implementing tailored strategies to promote sustained usage among Gen Z, OTT service providers can contribute to the establishment of a sustainable business model.
Therefore, this study aims to apply the Q methodology to derive and categorize the factors constraining the continued use of sports OTT services by Gen Z. By identifying the constraint factors from the viewing experiences and perceptions of Gen Z, the purpose of this study is to provide empirical foundational data that can lead to their viewing satisfaction and continued use. Additionally, the results of this study are expected to provide theoretical and practical implications regarding the constraints on the continued use of sports OTT services and contribute to the expansion of related research.
The research questions formulated to achieve the objectives of this study are as follows. First, what are the perceptions and types of factors that hinder the continuous use of sports OTT services among users? Second, what are the characteristics and implications of each identified type?
2. Literature Review
2.1. Sports OTT Service
OTT service has emerged as a new normal in the realm of media content. Responding to users’ shifting desires and interests, content providers in the sensitive media market have transitioned from traditional TV and IPTV-centric models to delivering on-demand OTT services via the Internet. Consequently, the global OTT market has experienced rapid growth, increasing from USD 6.1 billion in 2010 to USD 162 billion in 2023 [
19].
In contrast to traditional cable and satellite services, the distintive characteristices of OTT services are centered around user experience. First, OTT service users enjoy significantly expanded choices in terms of time, space, devices, subscription plans, and content compared to traditional services. While traditional services predominantly provide one-way supplier-centric services, OTT services offer enhanced interfaces and personalized content recommendations based on users’ viewing histories and preferences. Moreover, OTT services facilitate two-way communication, enabling interactions between users and providers or among users themselves. These features of OTT services allow users to consume content and maximize their experiences, enhancing their viewing immersion and satisfaction.
OTT services have also significantly influenced the paradigm of sports content consumption. Representative examples include ubiquitous viewing patterns through personalized devices and selective sports content consumption across multiple platforms rather than a single one. In the context of intensifying competition among OTT services and rising production costs, sports have become a key content offering [
20]. Based on a loyal fan base, sports content can foster a lock-in effect on existing users. Therefore, OTT service providers are actively pursuing the acquisition of sports content.
Among Korean OTT service providers, SPOTV NOW, Coupang Play, and TVING offer diverse sports content to users. Coupang Play, for example, provides sports content to its paid members through an integrated membership centered around its main e-commerce service. Coupang Play exclusively broadcasts events such as Spanish and French professional football leagues, the Davis Cup, and Formula 1. Since 2022, Coupang Play has hosted the Coupang Play Series, inviting renowned football clubs annually for exclusive broadcast matches.
TVING began offering sports content in earnest alongside dramas and entertainment programs with the exclusive broadcast of the 2020 UEFA European Championship [
21]. This year, TVING secured exclusive online broadcasting rights for Korean professional baseball, the most popular sport in Korea. As a result, TVING’s average number of users increased by approximately 38% compared to the previous year, with the younger demographic leading the trend of online baseball viewing and solidifying sports content as an important genre for OTT services.
Lastly, SPOTV NOW, launched in 2017, is Korea’s only specialized sports OTT service provider, primarily offering exclusive broadcasts of international football, baseball, basketball, mixed martial arts, volleyball, motorsports, and golf. Despite introducing a paywall for English Premier League matches from the 2022–23 season, SPOTV NOW continues to attract new users, demonstrating a successful business model for sports OTT services. Sports OTT service providers should continually deliver satisfactory services to retain users. For this reason, this study focuses on exploring the factors hindering the continued use of sports OTT services, focusing on SPOTV NOW users.
2.2. Determinants of Continuous Use Intention of OTT Service
OTT service has emerged as a new normal in the realm of media content. Responding to users’ shifting desires and interests, content providers in the sensitive media market have transitioned from traditional TV- and IPTV-centric models to delivering on-demand services. In contemporary society, the digital media environment serves as a space for personal self-expression and fulfilling communication needs. Consumers engage with digital media with clear purposes and pursue rational choices as active agents [
22]. Similarly, when using digital media, they can freely choose and switch channels based on their preferences, judgments, and evaluations [
23]. For these reasons, the recent digital media environment is undergoing a paradigm shift from a supplier-centered to a consumer-centered approach.
In this context, efforts to understand consumer viewing behaviors and meet their needs have been diverse in the digital media market, including OTT services. In particular, service providers must identify factors that promote the continuous use of existing users and secure new ones. Targeting the continuous use of existing customers is much more efficient than inducing new consumers to watch, particularly in the already saturated OTT market. Preventing the churn of existing subscribers would be a wise strategy. However, deeply understanding behavior regarding the continuous use of OTT services is by no means an easy task.
Numerous academic approaches have been attempted to study the continuous use of OTT services. In particular, aspects that users directly experience or perceive, such as content diversity, subscription costs, and user experience, can infer the likelihood of continuous use. First, a variety of content types can positively impact the intention to continue using a service by providing opportunities to select according to the differentiated needs and preferences of individual users [
24]. Costs also directly affect the intention to subscribe or continue using OTT services. The cost element can be further subdivided. For instance, some studies analyze the factors of continuous use based on perceived costs, including the variety of pricing plans, the amount level, the rationality of fees, and satisfaction with the pricing structure [
23].
Meanwhile, user experience refers to the user’s emotions, attitudes, and values while interacting with the service on the system [
25]. The overall experience regarding the quality of content, service, and system users encounter has become an important consideration for using OTT services. Yoon and Kim [
26] mentioned that the degree of personalized content provision and the complexity of use affect user satisfaction regarding Netflix, and Kim [
27] argued that the quality, playback quality, and convenience of mobile video services positively impact service satisfaction. In summary, it can be concluded that various factors such as diversity, cost, quality, convenience, complexity, and personalization in the OTT service usage process can determine users’ continuous use of the service. This study aims to identify and categorize the factors that hinder the constant use of sports OTT services among Gen Z.
2.3. Characteristics of Generation Z in Relation to OTT Service
The primary interest in today’s digital technology market, including OTT services, is Gen Z. Gen Z comprises about 26% of the global population and has grown up alongside digital technologies such as the Internet and smartphones, making them the main consumer group in the current digital market [
28]. Gen Z consumes significantly more digital content than other age groups and spends approximately 11 h a day viewing digital devices [
29]. They exhibit distinct socio-cultural characteristics and consumption behaviors compared to previous generations, significantly impacting the OTT service market.
Specifically, Gen Z, as digital natives, are inherently familiar with diverse digital environments. About 98% of Gen Z own a smartphone, demonstrating their strong affinity for adopting and using digital technologies, which they actively leverage in their consumption activities [
30]. Furthermore, Gen Z is highly responsive to trend changes and enjoys a solitary culture characterized by non-face-to-face communication through social media and networks. They also tend to prioritize sharing over ownership and experiences over product purchases.
In the context of OTT service usage, the characteristics of Gen Z are prominently displayed. In South Korea, Gen Z’s average daily OTT service usage time is 96 min, the highest among all generations (M generation: 73 min, X generation: 63 min, and Baby Boomers: 43 min). About half use OTT services multiple times daily, indicating a heavy user tendency. They utilize various devices to access a wide range of domestic and international genres and content, more so than other generations.
Gen Z shows a preference for practical and cautious consumption when using OTT services. With the increasing subscription fees of OTT services like Netflix and Disney Plus, over 40% of Gen Z in the United States have either canceled their subscriptions or resorted to account sharing, reflecting their high economic sensitivity and preference for rational choices [
31]. Additionally, Gen Z places a strong emphasis on personalization and customization. Known for pursuing freedom and unique identities, Gen Z has significantly influenced the spread of the value consumption trend in South Korea, where individual values are reflected in consumption patterns.
5. Discussion
This study focused on understanding the subjective perceptions of Gen Z users regarding the constraints on the continued use of sports OTT services. The results indicate that Gen Z users’ perceptions of sports OTT services exhibit unique characteristics for each type. When categorizing these types, Type 1 can be labeled as ‘Demanding improvements in pricing plans and system quality’; Type 2 as ‘Dissatisfaction with subscription fees and demand for diverse content’; and Type 3 as ‘Demand for differentiated services’.
5.1. Type 1: Demanding Improvements in Pricing Plans and System Quality
Type 1 includes a total of eight respondents. This group showed the highest factor loadings for statements 2 (2.063), 11 (1.772), and 14 (1.576). Examining the reasons why respondents in this type placed statements at the extremes reveals the following:
(+4) Frequent video interruptions and poor video quality are common when watching popular teams like Tottenham, Golden State, and the LA Lakers (statement 2). They prefer to have pricing plans that vary according to viewing options (quality, viewing device, etc.) (statement 11).
(−4) They believe that the commentators for sports broadcasts, primarily soccer and basketball, on SPOTV NOW are professional (statement 2). They have never felt burdened by the subscription fee due to watching multiple sports (statement 14).
This indicates that respondents in Type 1 perceive the lack of diverse pricing plans and dissatisfaction with system quality as significant constraints on the continued use of the service. Firstly, they recognize the need for a variety of pricing plans. This suggests a need for different pricing plans based on the usage environment and features rather than just the cost burden of the subscription. A variety of pricing strategies can provide users with customized choices, which can positively influence their decision to subscribe to an OTT service. Yoo and Park [
35] argued that pricing plans are crucial in determining users’ intentions to use paid services. Their study results showed that various pricing plans positively affect satisfaction with pricing, indirectly influencing the intention to continue using the service through perceived usefulness and ease of use. In other words, more diverse pricing plans can align with user expectations, impacting continuous OTT service usage and enhancing the service’s value [
36]. Issues related to subscription fees can negatively impact users’ continued use and adoption of the service. Thus, a strategy of reorganizing to create various pricing plans is needed to reduce the perceived financial burden.
Internationally, customized pricing plans play a crucial role in enhancing user satisfaction and encouraging continued usage [
12]. In India, the provision of flexible subscription models has been reported to contribute to increased subscription retention rates by allowing users to select services that align with their consumption patterns [
37]. This suggests that OTT service providers can enhance user satisfaction and promote sustained usage by offering a variety of pricing options. Therefore, the diversity and flexibility of pricing plans should be considered fundamental elements in user retention strategies.
In particular, Gen Z, as digital natives, are proficient at searching for and comparing various information through the Internet, rather than relying solely on advertisements for products or services. Similarly, Gen Z tends to pursue rational value consumption, purchasing products or services based on their values. However, SPOTV NOW only offers two pricing plans, Basic and Premium, which has led to dissatisfaction among users. For example, Netflix offers four pricing plans: Standard with ads, Basic, Standard, and Premium. The Standard plan with ads, which costs USD 4.5 per month and provides full HD quality, is top-rated worldwide, offering a significant lesson for SPOTV NOW [
38]. OTT service providers need to offer more diverse pricing plans, allowing users to choose services according to their preferences and facilitating rational and economical consumption.
Therefore, OTT service providers should diversify their pricing plans, allowing users to choose services according to their preferences and enabling them to make rational and economical consumption decisions. SPOTV NOW, in particular, needs to segment its pricing plans further to reflect the diverse demands and consumption patterns of its users beyond the current two options. For instance, a pricing plan for families or groups sharing the service, as well as an affordable plan for students, may be necessary. Additionally, the introduction of day-pass plans for important matches of Korean athletes or specific major events, as well as conditional plans for watching particular sports, could significantly contribute to enhancing user satisfaction and encouraging continued usage.
Furthermore, respondents in Type 1 perceived system quality as a crucial factor for the continued use of sports OTT services. System quality refers to the basic performance of the information system itself and is closely related to user convenience, system reliability, and accessibility. In OTT services, this means the system’s performance, clear video quality, and smooth access. Maintaining stable system quality is essential to accurately provide users with high-quality content. Also, to provide seamless service, it is important to improve system quality, such as platforms and Internet connections that can be accessed through various devices [
8]. As such, system quality is a factor that directly impacts the user experience. Therefore, OTT service providers must pay careful attention to maintaining high levels of service speed, connection stability, and technical reliability.
In particular, Gen Z, who are familiar with digital technology, may perceive system quality in OTT services as a fundamental standard. Since Gen Z is highly sensitive to service quality, they are quick to switch to alternative OTT platforms if issues such as video quality degradation, streaming delays, or system errors persist. A study on health-related live streaming services in China reported that technical stability, achieved through multi-device compatibility, AI-driven video quality optimization, and improved streaming performance, significantly influences user satisfaction [
39]. Considering Gen Z’s high expectations for technology and the critical role of system quality, technical stability is a fundamental factor in the success of OTT services. This underscores that, regardless of region, OTT service providers must prioritize technological reliability to maintain competitiveness and sustain user engagement.
Yet, issues like temporary service interruptions and playback errors due to system failures continue to be raised in South Korea. For instance, SPOTV NOW, which exclusively broadcasts the English Premier League, faced a surge of complaints in September 2023 when server access was disrupted during Son Heung-min’s game. With the increase in OTT service users, enhancing system quality to prevent inconveniences like connection delays and video quality degradation is crucial. System quality can minimize unnecessary effort for users and increase convenience [
40]. Improving usability and search functions within system quality can enhance user convenience, satisfaction, and positive experiences. If Gen Z users repeatedly experience video quality degradation and connection errors, they will likely quickly decide to cancel and switch services. Therefore, sports OTT service providers should offer diverse pricing plans and focus on implementing a stable system that allows users to enjoy domestic and international sports content seamlessly across various devices.
5.2. Type 2: Dissatisfaction with Subscription Fees and Demand for Diverse Content
Type 2 includes a total of eight respondents. This group showed the highest factor loadings for statements 7 (1.849), 10 (1.117), and 16 (1.053). Examining the reasons why respondents in this type placed statements at the extremes reveals the following:
(+4) The video quality is poor compared to the subscription fee, and the broadcast quality deteriorates significantly when there is a surge in users during popular games (statement 7). They find it unreasonable to watch advertisements despite paying for a subscription (statement 10). I usually enjoy watching the NBA, but I’m dissatisfied because the broadcasts are always focused on the Golden State Warriors’ games (statement 16).
(−4) Additional services like prediction events or prize draws are not directly related to the broadcast service, so I don’t consider them important (statement 7). They believe exclusive broadcasting can increase the revenue for sports or leagues, leading to overall development in the sports industry. However, since it can increase consumer burden, OTT service providers should offer appropriate pricing plans based on differentiated services (statement 10).
Summarizing these findings, respondents in Type 2 desire a level of service that matches their perceived subscription fee and have a high demand for diverse content. Basically, Korean viewers are not accustomed to paid subscription OTT service models, including Gen Z. Until recently, domestic sports viewers watched popular professional sports like baseball and football through cable TV or IPTV at low costs. Therefore, it is understandable that users are dissatisfied with having to watch sports content through paid subscriptions. More than 80% of Korean people negatively perceive paid sports broadcasts on OTT services [
41]. This study’s dissatisfaction with subscription fees can be interpreted as users’ critical view of paid subscriptions, comparing their service expectations with the perceived subscription quality.
For services, due to their intangible nature, price is considered even more important than for goods. Yoo and Park [
35] mentioned that the affordability of subscription fees has a greater impact on satisfaction than the diversity of subscription plans in OTT services. In fact, in India, the recent surge in subscribers due to affordable OTT service pricing plans supports the findings of this study [
42]. Furthermore, Chung and Zhang [
43] argued that the appropriateness of pricing plans directly affects the continued use of OTT services. As such, adding cheaper subscriptions plans can enable economical and rational service use for users who feel burdened by subscription fees, ultimately encouraging their continued use.
Also, consumers generally use price as an indicator of the quality and benefits of a product or service, often perceiving higher prices as indicative of higher quality [
44]. OTT service providers should offer differentiated value to users that can offset the subscription fee. To realize value consumption that meets the diverse needs of users through paid subscription services, it is essential to provide high-quality sports content. Rich information endows the service with unique value and enables content differentiation from other service providers. Information quality in OTT services can be considered a crucial factor for continued use. This suggests that viewers perceive trendy and exclusive content as a key differentiating factor of OTT services, which can enhance their subscription retention and overall service satisfaction. Namely, differentiated, high-quality content can create a strong connection between OTT services and users, generating experiential value.
These findings are also relevant to the business strategies of OTT service providers in the Asia–Pacific market. Given the region’s diverse cultural backgrounds, OTT service providers strategically offer content tailored to local preferences. For instance, global platforms like Netflix and Amazon Prime Video are investing in local content and forming strategic partnerships with production companies to strengthen their regional presence [
42]. Regional platforms, such as Hotstar in India, Viu in Hong Kong, and iFlix in Malaysia, leverage in-depth knowledge of local markets and preferences to deliver customized content that resonates with users. A systematic review analysis of Gen Z’s OTT service selection factors at the international level also highlighted that the combination of binge-watching culture and personalized content recommendation systems increases Gen Z’s OTT usage time and enhances the likelihood of long-term subscription retention [
45]. This finding suggests that both global and regional OTT services increasingly adopt content personalization strategies, indicating that this approach has become a universal trend in the OTT industry worldwide. As competition intensifies among OTT service providers, offering diverse content can contribute to differentiation and help build a loyal subscriber base.
Since SPOTV NOW is a sports-exclusive OTT platform, it faces limitations in offering a wide variety of content across different genres. Moreover, other OTT service platforms are increasing investments in sports broadcasting to attract new users, making SPOTV NOW’s competitive position in the market challenging. Therefore, in the face of intensified competition, SPOTV NOW should consider strategic partnerships with both domestic and international OTT providers to offer a broader range of content beyond sports. By adding movies, dramas, documentaries, and other diverse content, SPOTV NOW could reduce user churn during off-peak seasons and encourage continued viewing. Additionally, such strategic partnerships would strengthen SPOTV NOW’s competitiveness in the global market and enhance its brand recognition overseas.
5.3. Type 3: Demand for Differentiated Services
Type 3 consists of two respondents, with the highest factor loadings for statements 4 (1.2883) and 6 (1.2844). Examining why respondents in this type placed statements at the extremes reveals the following:
(+4) While it is commercially understandable to broadcast only popular NBA teams, it is very disappointing for those who support relatively unpopular teams (statement 6).
(−4) The subscription fee seems reasonable compared to the content provided (statement 6).
In addition, respondents in Type 3 sympathized with issues such as the inability to access two games simultaneously, the lack of an account-sharing subscription plan, insufficient benefits for premium subscription plans, and broadcasts focused on popular teams. This indicates that respondents have a high demand for differentiated services tailored to the user’s needs beyond basic services.
Recently, in the competitive landscape of exclusive sports broadcast content in domestic OTT services, users tend to select services that offer special benefits tailored to them [
46]. To illustrate, Netflix, a leading OTT service, has been considered successful due to its differentiated strategies, including unique content and original series that cannot be found on other platforms [
47]. When Netflix first entered the domestic market, it maintained relatively high prices while enhancing user satisfaction through strategic approaches such as offering a free trial month for new subscribers and allowing up to four simultaneous connections on a membership plan [
43]. A survey revealed that 64% of Korean OTT service users would cancel their subscription if account-sharing services were restricted, highlighting their sensitive response to such changes [
48]. Additionally, enhanced platform conveniences such as video recommendations and search functionalities are crucial for user satisfaction and can play an important role in market competition within the OTT service industry. These differentiating factors can positively impact users’ expectations and perceived usefulness, influencing their continued use.
Kotler [
49] refers to additional services and benefits that distinguish a product from its competitors as augmented products. In the context of OTT services, additional features beyond system stability and quality content can serve as supplementary benefits that enhance the effectiveness of core service functions. Namely, differentiated service features are likely to significantly impact users’ continued use. As competition in the sports OTT service market intensifies, providers must strive to secure a competitive edge through additional services.
Especially, Gen Z is accustomed to personalized experiences and will likely expect faster and more convenient access to the content they desire within OTT services. Differentiated services, such as personalized recommendations, tailored content offerings, and optimized user experiences, are key elements in enhancing user satisfaction and driving long-term engagement. In fact, several prior studies have shown that personalized content delivery and customized recommendation systems in OTT services can increase user satisfaction and promote continued usage intentions. In China, OTT platforms are utilizing advanced technologies such as AI and machine learning to offer personalized services, thereby improving user subscriptions and retention [
43]. Delivering personalized experiences can make content more valuable and relevant to users. Therefore, sports OTT services should focus on offering personalized viewing experiences centered around the sports, leagues, and teams that individual users prefer, which will drive their continued usage.
However, while AI-driven personalized services enhance user satisfaction and provide greater experiential value, they also raise ethical and regulatory concerns. Key issues include user data privacy protection, potential biases in recommendation algorithms, and compliance with regional data protection laws such as Europe’s GDPR and California’s CCPA. Therefore, OTT service providers operating AI-based personalization systems must simultaneously adhere to international ethical standards and regional regulations to maintain user trust and reinforce the sustainability of OTT services.
5.4. Statements Agreed upon by All Types
Among the three types, four common items emerged, which can be categorized into one positive item and three negative items. Specifically, all types reacted indicating a lack of various discount events and benefits. This suggests that existing sports OTT users perceive the current pricing as relatively expensive or unreasonable. Given the recent increase in subscription fees for both domestic and international OTT platform services, users’ burden regarding subscription fees has intensified. Therefore, maintaining the current content and platform services of subscription-based OTT services while offering cheaper ad-supported pricing plans could be an effective strategy to enhance consumer satisfaction.
On the other hand, there was a negative attitude towards items indicating a lack of broadcasting technology capabilities and domestic sports event broadcasts. This implies that users do not perceive any discomfort with the broadcasting technology capabilities and the diversity of broadcasts on the current OTT platforms. In other words, most users are relatively satisfied with the technical aspects and the quantity of content provided by the sports OTT services.
6. Conclusions
The objective of this study is to identify and analyze persistent usage constraints among Gen Z in sports OTT services. Through this, this study intends to provide empirical data that can help enhance viewer satisfaction and encourage the continued usage of sports OTT services.
To achieve this research objective, the Q methodology was employed. Ultimately, 25 participants were selected for the Q sample and 18 for the P sample to conduct Q sorting. Using the QUANL program, correlations for each respondent were calculated, and Q factor analysis was performed through principal component analysis and varimax rotation. As a result of these processes, a total of three types were identified, with an explanatory power of 46.5% across all types. Type 1 (N = 8) was labeled as ‘Demanding improvements in pricing plans and system quality’, Type 2 (N = 8) as ‘Dissatisfaction with subscription fees and demand for diverse content’, and Type 3 (N = 2) as ‘Demand for differentiated services’.
This study aims to present academic and practical implications. In terms of academic implications based on these research findings, unlike previous studies that mainly focus on analyzing attitudes and behaviors toward sports OTT services using R-methodology to examine causal relationships between variables and aim for statistical generalization, this study delves into personal opinions, beliefs, and emotions in depth. Therefore, this research is deemed to better reflect factors influencing the continued usage of sports OTT services from the users’ perspectives.
Furthermore, unlike previous studies, this research analyzed the subjectivity regarding constraints on the continued usage of sports OTT services specifically targeting Gen Z. Gen Z, as digital natives, significantly influences the development and success of OTT services by enjoying on-demand viewing and various content genres.
Through this study, it has been demonstrated that, in addition to content quality and system quality emphasized in previous studies, Gen Z considers various factors such as the need for diverse pricing plans, dissatisfaction with subscription fees, and demand for differentiated services that can affect continued usage. Therefore, these research results can provide insights for interpreting trends in OTT service consumption and factors influencing future continued usage by Gen Z.
Finally, AI-driven personalized services not only enhance the user experience but also strengthen the competitiveness of OTT services and serve as a crucial foundation for developing new business models and service formats. This study suggests that while AI-based personalization is already valuable, it holds even greater potential as an innovative tool that will shape the future of OTT services, warranting further in-depth research. However, to ensure the sustainability of AI-driven personalized recommendation systems, it is essential to comply with global ethical standards and regional regulations (e.g., GDPR, CCPA).
Next, this study explores factors constraining the continued usage of sports OTT services among Gen Z, aiming to provide practical implications that may assist service providers in formulating marketing strategies. Firstly, this study mentions the lack of various pricing plans for sports OTT services. Gen Z desires to choose reasonable pricing plans according to their economic situations and values pursued. Therefore, service providers should offer various pricing plans based on service benefits to provide flexibility in purchasing decisions and encourage continued usage.
Secondly, to offset user dissatisfaction with subscription fees, it is necessary to provide various sports content. Currently, sports OTT services tend to focus only on live broadcasts of popular team matches. However, Gen Z has diverse tastes and preferences for specific sports and teams. Therefore, sports OTT service providers should offer a variety of domestic and international sports content, including less popular sports, considering individual preferences.
Lastly, efforts are required to meet Gen Z’s demand for differentiated services. Therefore, OTT service providers should enhance user satisfaction and platform loyalty by adding features that enhance personalized experiences, such as allowing account sharing among users, enabling simultaneous access to two games, and providing personalized interfaces to optimize user experiences.
In summary, in the initial phase, it is essential to establish the fundamental infrastructure of OTT services and enhance pricing strategies. Various subscription options, such as basic plans, premium plans, and pay-per-match models, should be introduced while ensuring that pricing structures align with Gen Z’s preferences and expectations. In the mid-term, continuous efforts must be made to secure diverse domestic and international sports content, including broadcasting rights for new leagues. Additionally, improving the user interface (UI) and offering personalized home screens will be crucial for enhancing the personalization experience. In the long-term, technological innovations, such as ultra-high-definition (UHD) streaming, should be implemented. Moreover, expanding content through collaborations with overseas sports leagues will be necessary to strengthen the platform’s global appeal. These strategies will enhance the competitiveness of sports OTT services among Gen Z, the primary target audience, and contribute to sustainable growth in the industry.
Based on the results of this study, the following limitations are proposed, along with suggestions for further research. Firstly, it is important to note that this study collected and analyzed data exclusively from Gen Z. Gen Z was chosen as the research focus due to its significant influence in the OTT service market. However, since perspectives from other generations were not included, the interpretation of the results may be somewhat limited. To address this limitation, future studies should incorporate or compare perspectives across multiple generations to better identify generational differences and commonalities. This approach would help OTT service providers develop differentiated strategies that cater to the needs of each generation, ultimately contributing to the long-term sustainability of their services.
Secondly, the P sample size in this study was relatively small, consisting of 18 respondents. While Q methodology is based on small sample theory and focuses on differences in subjective importance rather than individual significance, expanding the P sample size in future research could provide deeper insights by exploring respondents’ subjective opinions from a broader range of perspectives.
Lastly, this study focused on identifying user type characteristics within sports-specialized OTT services, rather than examining interactions between different OTT service models. The primary objective of this research was to segment user types and analyze their distinct characteristics within the context of sports OTT services. Therefore, future research should conduct a more comprehensive analysis of the differences between various OTT service models that provide sports content, such as Coupang Play and TVING, and explore the interactions between user types across these platforms in greater depth.