A Comparative Analysis of Undergraduates’ Preference between Traditional Television and OTT Platforms in Watching Movies Select Universities in Nigeria

Abstract

With the introduction of new digital technologies and the internet, traditional television started to share its audiences with a new technology called the OTT platforms. As of January 2023, Nigeria was home to 31.60 million social media users, equating to 14.3% of the total population. There have been studies in the area of OTT in Nigeria, but none have compared undergraduates’ preference between traditional television and OTT platforms in watching movies among select universities in Nigeria. The study analysed undergraduates’ preference between traditional television and OTT platforms in watching movies in select universities in Nigeria. A survey research method was used. The findings revealed that the respondents are highly aware of the existence of traditional television and OTT platforms. Further findings revealed that the undergraduates in the select universities in Nigeria preferred OTT platforms more than traditional television for watching movies. The reasons for their preference for OTT platforms for watching movies are it enables them to access a variety of movies, due to the convenience it presents and it is not costly. The researchers recommend that OTT platform operators in Nigeria should carry out effective awareness campaigns in other to promote their products and services to the people.

1. Introduction

Television popularly known as “TV” can be defined as an electronic device that displays moving images accompanied by sounds as electromagnetic waves. It is used to broadcast objects, images, and sounds to its viewers. Television was conceived in the early 20th century as a medium for communicating and educating. However, in the mid-century, television became a model for broadcasting programmes to people all over the world.

However, in the mid-century, television became a model for broadcasting programmes to people all over the world. Now, with the improvement in technology, there are several ways TV can be delivered: “over the air” by terrestrial radio waves; along coaxial cables (cable TV); redirected satellites held in geostationary Earth orbit (direct broadcast satellite, or DBS, TV); streamed through the Internet; and recorded [1]. Therefore, with the rapid growth in technology, there have been some improvements in traditional television features and specifications. In some traditional television such as cable and satellite television with subscriptions to some packages like the DSTV Explorer and TiVo, audience members are able to rewind, record, and even pause programmes and movies. The viewer is able to watch their favourite movies or programs at a convenient time with the use of video-on-demand services.

Nonetheless, with the introduction of new digital technologies and the internet, traditional television started to share its audiences with a new technology called the OTT platforms. Over-the-top (OTT) platforms are digital technologies that are accessible through the Internet. OTT apps can stream content without the use of a cable box. This eliminates dependency on cable providers, geographical restrictions, time foundations, etc [2].

Non-television delivery systems such as the Internet, which enables viewers to download traditional TV shows onto a computer, laptop, iPod, or smartphone, are beginning to change people’s behaviour towards watching television. They are platforms that distribute media content directly to audiences through the Internet. It is a streaming media service where all communications are charged through data. The service offers access to its viewers to watch films and television content. The term is similar to Subscription-based on video-on-demand which grants viewers the privilege to pick and view any content at their own convenience, examples include Netflix, HULU, YouTube, etc.

There is a general agreement among media and communication scholars that a monumental shift is occurring in the media and communication habits of young people [3]. This could be seen in the consumption of movies which is identified to be one of the major sources of entertainment. And with the improvement in technology, it can now be accessed via the internet to phones and computers. There is a lack of literature regarding or relating to OTT platforms from Nigeria’s perspective.

In Nigeria, with the continuous improvement in technology, audience fragmentation becomes inevitable. Also, with youths at the forefront of the technology revolution, the battle for audience members between traditional television and OTT platforms keeps growing stronger. Therefore, this study comparatively analysed undergraduates’ preference between traditional television and OTT platforms in watching movies in select universities in Edo State, Nigeria.

2. Statement of the problem

The rate at which youths cling to the use of OTT platforms in watching movies is quite alarming, and this has brought about questions about whether it would reduce the youth’s patronage of watching movies on traditional television. Over-the-Top platforms gained more audience during the lockdown as a source of entertainment.

Nokuphiwa and Robertson [4] conducted a study on the impact of over-the-top television services on pay- television subscription services in South Africa. Also, [5] conducted a study on Network vs. Netflix: a comparative content analysis of demographics across prime-time television and Netflix original programming. These empirical studies made it known that OTT is gradually gaining ground in the media market. In Nigeria, a survey carried out by GeoPoll among youths in five Sub-Sahara African Countries (Ghana, Nigeria, Tanzania, Uganda, and Kenya) reports that youths between the ages of 18–35 in Nigeria are accessing their movies via Pay TV than online video streaming services such as Amazon, Showmax, Netflix and Apple [6].

Previous studies indicate that youth in Nigeria prefer traditional television over OTT platforms. However, with the rapid growth of technology one wonders if that preference is still maintained. Therefore, this study comparatively analysed undergraduates’ preference between traditional television and OTT platforms in watching movies in select universities in Edo State, Nigeria.

3. Research questions

1. What is the level of awareness of undergraduates in select universities in Edo State on the existence of traditional television and OTT platforms?

2. What is the preference of undergraduates in select universities in Edo State between traditional television and OTT platforms for watching movies?

3. What are the motivating factors behind undergraduates’ preference between traditional television and OTT platforms for watching movies in Edo State, Nigeria?

4. What are the viewing habits of undergraduates in select universities in Edo in their preferred choice between traditional television and OTT platforms for watching movies?

4. Meaning of over-the-top (OTT) platforms

Over-the-top can be seen as services that go beyond the conventional or traditional way of disseminating content or sharing ideas. According to [7], it is referred to as services that went “over” the heads of cable providers, specifically streaming services. According to Chris [8], over-the-top (OTT), is referred to devices that go “over” a cable box to give the user access to TV content. These devices make use of the internet to access TV content. With OTT, content is delivered through an internet connection instead of the conventional – through a broadcast provider or television cable.

According to Jeremy [9], “Over-the-top” media services are particularly referred to as any online content provider that delivers streaming media as its only product. It is likened to video-on-demand platforms. It can also be referred to as messaging services, audio streaming services, or internet-based voice. To access the contents on any OTT platform it is essential that the individual must be connected to the internet either locally or mobile network. However, OTT services could be subscription-based or could offer advertising or in-app purchases.

According to Endavo [10], OTT is described as going beyond cable offerings. Contents found on OTT are movies, long and short-form content, and television shows. They are streamed via smartphones, computers, and other devices. Some examples of OTT are Hulu, Amazon, DirecTV Now, Prime Video, FuboTV, Netflix, Sling TV, PlayStation, Vue, Hulu with Live TV, YouTube Premium, MercTV, and YouTube TV. However, YouTube also doubles as a social video platform that allows consumers or customers to share moments caught on camera.

According to KPMG [11], the OTT market is a place occupied by powerful players such as Netflix, Amazon Prime, and Hulu. And for that reason, small players find it difficult to find their place in that market where contents are what rules and sales. In other, for those players to sustain their customers they must focus on providing creative content, fixing the right price, improving their customer relations activity, and limiting account sharing.

5. Types of OTT technologies

Jeremy [9] identifies types of content suitable for OTT solutions. This new technology covers a wide range of web-based content. Such as;

1. Video: This is the most popular OTT media and it’s used for streaming videos. This includes subscription-based platforms such as Hulu, Amazon Prime, and Netflix and also paid platforms such as iTunes, and ad-based like YouTube.

2. Audio: Just as the way videos are streamed, audio is also streamed through OTT. Examples of audio stream OTT media are Pandora, Podcasts, Spotify, etc.

3. Message: This kind of OTT media is one that provides instant messaging service for customers through internet connections. This OTT service competes with mobile SMS networks. Examples of such are WhatsApp, Instagram, WeChat, Facebook, Telegram, etc.

4. VOIP: VOIP or Voice-Over IP calls platforms like WeChat and Skype that run on Internet platforms, are considered to be OTT services. In some cases, these services are able to integrate with mobile phone networks and can enhance certain features.

6. Some of the most popular OTT platforms for watching movies

Amy [12] mentioned three OTT platforms as the early starters of streaming. Below are the three and how they started.

6.1 YouTube

YouTube was founded by Steve Chen, Jawed Karim, and Chad Hurley in 2005. The three founders met while working for PayPal. Hurley was a designer while Chen and Karim were engineers. The name (YouTube) was suggested on February 14, 2005, by the trio, and in May 2005, the site was launched. The site became popular in December 2005 after Saturday Night Live aired its first short video known as “Lazy Sunday”. Google helped to promote the clip as it could only be found on Google as “SNL rap video”, “Lazy Sunday SNL”, or “Chronicle of Narnia SNL”. On Google, the video was linked to YouTube, and with that, the video went viral.

While the video went viral, it also created a problem for YouTube as the company expenses increased with no strategised means of creating revenue. As of May 2023, YouTube has 2.1 billion monthly active users based all around the world [13], about 300 hours of videos are uploaded every minute, and about 5 billion videos are watched on YouTube every day.

6.2 Netflix

Netflix was launched in 1997 by Reed Hastings and Marc Randolph. At the time Netflix was launched VHS tapes were expensive and DVDs were not used widely. The founders visualised a future with a website where movie watchers would receive or order movies with a click of a mouse. In the year 2000, the founders discovered that they were losing money, and so Hastings flew to Dallas from San Jose to meet with Blockbuster who had 7700 stores worldwide that were selling microwave popcorn and also renting VHS tapes. Netflix only had 300,000 subscribers then and to get movies to the customers, it relied on USPS. In the same year, when Hastings went to meet Blockbuster, he thought of a plan to rent movies to customers by streaming them over the Internet. However, the technology was not available at that time.

To start with, Hastings, approached Blockbuster for him to buy a 49% stake of Netflix for #50 million of which Netflix will then absorb the Blockbuster name. This is because he wanted Netflix to become Blockbuster’s streaming service but Blockbuster rejected the proposal. After multiple rejections by Blockbuster, Hastings went back travelled back and began working towards promoting Netflix. Blockbuster later launched its subscription service in 2004 but it was already too late as Netflix had already gained ground.

In 2007, Netflix introduced a streaming service. In 2013, it produced its first show premiered titled “House of Cards”. From then, it started partnering with other companies such as PS3, Phones, and Xbox among others. Presently, Netflix has around 232.5 million paid subscribers worldwide as of the first quarter of 2023 [14].

6.3 Hulu

On October 29, 2007, Hulu was launched. It was owned by AOL, Facebook, MSN, Myspace, Comcast, and Yahoo. It was a joint venture. The first contributor was NBC later Fox followed. It was announced to the public on March 12, 2008, in the U.S. It was inspired by Netflix. But unlike Netflix, it was spearheaded by Hollywood executives who saw the benefit of streaming. One of which was making money from making available to the public older television shows and newer television shows. Over the years, Hulu has changed to a service where one can watch current episodes of television shows.

Hulu is divided into two. One is the free plan service which contents are limited to users and are accessible through computers only while the other is the paid service which contents are not limited to users and can be accessed through Hulu applications on mobile phones, computers, and connected televisions. In November 2010, Hulu Plus was launched which offered an expanded content library that includes, full seasons, more episodes of shows, and day-after access to current season content via the free Hulu. In 2016, in a joint venture with Yahoo called Yahoo View, Hulu rebranded its free content. In the following year, live television streaming was launched by Hulu. Currently, the company has over 20 million subscribers. In the second quarter of 2023, the Walt Disney Company reported that Hulu had 48.2 million paid subscribers, up from 45.6 million in the corresponding quarter of the previous fiscal year [15].

7. Empirical review

Nokuphiwa and Robertson [16] Conducted a study on the impact of over-the-top television services on pay- pay-television subscription services in South Africa. The objective of the study is to establish the impact OTT TV services have on traditional Pay TV services in South Africa. The study adopted the online survey method. The study found that rather than being a substitute, OTT TV serves as a complementary service to Pay TV services. The study showed that for consuming TV content, low-income earners make use of free/paid mobile applications, while those without OTT TV and Pay TV services, make use of free-to-air services as their preferred platforms for TV consumption.

Narendran [17] conducted a study on consumer behaviour of online video and the perception of digital advertisements among Swedish millennials. The objective of the study was to ascertain how the consumption behaviour of online video among Swedish millennials changed in the last decade. An in-depth interview method was used to collect the data needed for the study. Also, 2009–2019 statistics from MMS on television viewership figures, OTT viewing figures, and OTT reach were collected. 2013–2018 data from IRM (Institut for Reklam Och Mediestatistik) on the turnover of television and digital advertisement were also collected. The study concluded that media convergence has made it possible for millennials to stream and watch content according to their schedules which has led to cord-cutting by an increased number of people thereby, resulting in a decrease in broadcast viewership.

8. Theoretical framework

Elihu Katz introduced the Uses and gratifications theory in the late 1940s, and his colleagues, Jay Blumber & Michael Gurevitch continue to expand the idea. The theory explains how individuals use the media among other resources in their environment to satisfy their needs and achieve their goals. The theory helps to understand that there are certain reasons why individuals choose a particular media over others. The uses and gratifications theory also asserts that media content does not have the same effect on people. That is, media content has different effects on people and the reaction of one person to media content is different from that of another person based on their ideas and what they want to do with the media. Also, the consumers’ background, personality, race, values, and gender determine the type of medium they will choose or select. These and more serve as the reason why people turn to one medium or the other.

The significance of the uses and gratification theory in this study is because of its assumptions which are explained in this study. First, it helps one to know that undergraduates in select universities in Edo State, Nigeria make use of either television or Over-the-top platforms for watching movies. Second, it helps one to know between traditional television and OTT platforms, which one undergraduate in Edo State, Nigeria prefers for watching movies. Lastly, there is its potential of being able to help one understand why undergraduates in Edo State, Nigeria prefer either traditional television or OTT platforms for watching movies.

9. Methodology

For the purpose of this research work, the selected institutions for the study were; the University of Benin and Benson Idahosa University, all in Edo State, Nigeria. The current population of undergraduate students in the University of Benin in the 2022/2023 academic session is 77,000 according to registry units of the school. While Benson Idahosa University’s population in the 2022/2023 academic session is 3407 according to the Admission Office of the school. Therefore, the total number of undergraduates making up the population of the study was 80,407(authours compilation, 2023). The researchers chose the two universities in other to generate diverse ideas from government-owned universities and privately owned universities. To determine the sample size for the study, the researcher made use of Wimmer and Dominick’s online calculator with an error margin of 5% at a confidence level of 95%. Thus, the sample size of the study was 382 and it was shared among the universities. The University of Benin had 200 copies of the questionnaires owing to their large population while Benson Idahosa University had 182.

The researchers adopted the multi-stage sampling technique. In the first stage, the researcher adopted the purposive sampling technique. The study was restricted to two universities in Edo State; one federal university and one private university. The researchers purposively chose the University of Benin and Benson Idahosa University to represent the population as a federal and private institution respectively. The reasons for the researchers’ choice of institutions are; Firstly, both are highly recognised and reputable universities in Nigeria. Secondly, funding and time were not sufficient for the researcher to expand the study to other universities in Edo State. Lastly, the researcher chose them due to convenience and access.

In the second stage, the researcher adopted the stratified random sampling technique. Using the stratified technique, the University of Benin has eleven faculties and three colleges, namely; the Faculty of Arts, Faculty of Agriculture, Faculty of Engineering, Faculty of Environmental Sciences, Faculty of Education, Faculty of Management Sciences, Faculty of Life Sciences, Faculty of Law, Faculty of Pharmacy, Faculty of Physical Sciences, Faculty of Social Sciences, College of Medical Sciences, School of Basic Medical Science, School of Dentistry and School of Medicine.

In Benson Idahosa University, using the stratified random sampling technique, Benson Idahosa University has six faculties namely; the Faculty of Arts and Education (FAE), Faculty of Agriculture & Agricultural Technology (FAAT), Faculty of Basic & Applied Sciences (FBAS), Faculty of Engineering, Faculty of Social and Management Sciences, Faculty of Law, The researcher randomly selected two Faculties; Faculty of Art and Education and the Faculty of Social Sciences and Management Sciences.

In the third stage, the researcher adopted the simple random sampling technique. In the University of Benin, out of the two faculties selected (Faculty of Arts and Faculty of Social Sciences). One department was randomly selected from each of them. That is Mass Communication Department and Public Administration Department respectively.

In Benson Idahosa University, out of the two faculties selected (Faculty of Social and Management Sciences and Faculty of Arts and Education (FAE). One department was randomly selected from each of them. That is Mass Communication and English Studies Department, respectively.

In the fourth stage, the convenience/available sampling technique was used to distribute copies of the questionnaire to available and accessible students on the campus.

10. Data presentation and analysis

The percentage method was used in data analysis and presentation. Out of 382 copies of the questionnaire administered to respondents at the University of Benin and Benson Idahosa University, in Edo State, only 361 (95%) were returned and found useable, thus giving the questionnaire a mortality rate of 21 (5%). Therefore, only 361 copies of the questionnaires were used for data analysis.

The demographic data of the respondents indicate that 206 (57%) are females, while 155 (43%) are males. The age brackets of the respondents indicated that 21 and 25 (36%) of age accounted for most, while the age brackets of 16 and 20 (15%) were the smallest in the number of respondents sampled. Further analysis revealed that 19 (5%) respondents were married while 342 (95%) were single.

The data in Table 1 show that the respondents are highly aware of the existence of traditional television and OTT platforms, 48% of the respondents agreed to this.

Response	Frequency	Percentage
Very high	113	31
High	175	48
Can’t tell	37	10
Low	22	7
Very low	14	4
Total	361	100

Table 1.

Level of awareness of undergraduates in the select universities in Edo State on the existence of traditional television and OTT platforms.

Sources: Authors compilation 2023.

The data in Table 2 indicate that the undergraduates in the select universities in Edo State, Nigeria prefer OTT platforms more than traditional television for watching movies. This is because the majority (67%) answered in this direction.

Response	Frequency	Percentage
Television	118	33
OTT platforms	243	67
Total	361	100

Table 2.

Preference of undergraduates in the select universities in Edo State between Traditional Television and OTT Platforms for watching movies.

Sources: Authors compilation 2023.

The data in Table 3 reveal that motivating factors behind undergraduates’ preference between traditional television and OTT platforms for watching movies is due to the fact that it enables them to access a variety of movies, 40% of the respondents agreed to this.

Response	Frequency	Percentage
Less costly	103	29
Access to varieties of movies	146	40
Convenience	112	31
Total	361	100

Table 3.

Motivating factors behind undergraduates’ preference between traditional television and OTT platforms for watching movies in Edo State, Nigeria.

Sources: Authors compilation 2023.

The data in Table 4 indicate that most (46%) of undergraduates in select Universities in Edo in their preferred choice between traditional television and OTT platforms spent less than 2 hours watching movies.

Response	Frequency	Percentage
Less than 2 h	165	46
2–4 h	140	39
More than 4 h	32	9
Never	24	6
Total	361	100

Table 4.

Viewing habits of undergraduates in select universities in Edo in their preferred choice between tradition television and OTT platforms for watching movies.

Sources: Authors compilation 2023.

11. Discussion of findings

The findings revealed that the respondents are highly aware of the existence of traditional television and OTT platforms, 48% of the respondents affirmed they are aware of this. This finding confirms that of Ajay [18] who revealed that OTT platforms are heavily used by youths in India and Netflix serves as the most popular streaming platform.

It was discovered that the undergraduates in the select universities in Edo State, Nigeria preferred OTT platforms more than traditional television for watching movies. This is because the majority (63%) of the respondents answered in this direction. This finding gives support to a study conducted by Nandani [19] titled “The Emergence of OTT Platforms during the Pandemic and Its Future Scope”. The study explained that OTT platforms have grown in popularity more than even television over the years. It also observed that before the pandemic, OTT platforms had been observing an upward curve in their popularity and usage but the pandemic brought an exponential increase in the popularity of Over-the-top platforms due to the change in the consumption patterns used by people for entertainment via various media platforms. The findings also support Nai-se’s [20] study on “Gratification Obtained from Television Shows on Internet TV and Conventional TV”, the study showed that Internet TV (such as OTT Platforms) is the leading gratification for watching shows as the respondents indicated that they receive more enjoyment from the internet TV

The data in Table 3 revealed that motivating factors behind undergraduates’ preference between traditional television and OTT platforms for watching movies is due to the fact that OTT platforms enable them to access varieties of movies and it is less costly. This discovery is supported by a report by VdoCipher [21] report. It notes that the OTTP platform in recent years has empowered customers by providing them with a variety of choices for their entertainment needs. Users are no longer tied down to traditional mediums such as satellite cable (https://www.vdocipher.com).

It was discovered that most (46%) of undergraduates in select Universities in Edo in their preferred choice between traditional television and OTT platforms spent less than 2 hours watching movies. The implication of the findings shows that many of the respondents spend less than 2 hours per day watching movies on OTT platforms. However, a study by Nandani [19], “The Emergence of OTT Platforms during the Pandemic and Its Future Scope”, argues that OTT platforms have grown in popularity as large numbers of users spend 2 to 4 hours consuming its content. Thus, this present study stresses that, though OTT platforms have grown in popularity, undergraduates spend less than 2 hours per day consuming its content.

12. Conclusion

The study shows that with the introduction of new technologies, there is a paradigm shift in undergraduates ‘preferred media for watching movies in Nigeria. This is because they now prefer OTT platforms to traditional television in watching movies with the majority of them spending not less than 2 hours per day watching movies on OTT platforms. The reasons for their preference of OTT platforms for watching movies are due to the fact that OTT platforms enable them to access a variety of movies, due to the high quality of movies it displays, the convenience it presents, and because it is less costly.

13. Recommendations

Drawing from the empirical data gathered from the field study, the researchers recommended as that:

1. OTT platform operators in Nigeria should carry out effective awareness campaigns in other to promote their products and services to the people.

2. Television operators should carry out extensive research on how they can improve their services to suit the needs of undergraduates and youths generally since majority of the undergraduates now prefer OTT platforms.

3. Over-the-top platform operators in Nigeria should improve more on their services in other to attract more audience and also to maintain the preference of their platforms by their subscribers for watching movies. They should ensure that there are varieties of movies that are also of high quality on their platforms and also make it more convenient for the audience members while also ensuring that the prizes are affordable.

4. With the rise of technological improvement in the world today, future researchers should conduct surveys to ascertain the perception, behaviour, and attitudes of youths in Nigeria towards television and OTT technologies.