The majority of consumers in the Philippines prefer pay-per-use over-the-top (OTT) media consumption than monthly subscriptions, according to a study conducted by analyst and consultancy firm Ovum on behalf of Amdocs, a multinational corporation specializing in software and services for communications, media, and financial services providers. The study was conducted among 4,000 consumers from Australia, India, Singapore, Thailand, and the Philippines, 787 of which are Filipinos.
With 72% of Filipinos more likely to pay for short-term access or specific content, this characteristic reflects the traditional consumer behavior prevalent in the country, deep-rooted in the "sari-sari store" culture. Sari-sari stores refer to ubiquitous, small-time convenience stores found in every street in the Philippines, where customers can buy in "tingi" or retail rather than whole package. Meanwhile, the accessibility of these stores among Filipino households make on-demand purchase possible, a concept popular among OTT media services.
Other relevant findings of the study show that 69% of Filipino consumers access Netflix, making it the dominant OTT media provider in the Philippines. More than half (52%) of consumers also prefer having their OTT media services bundled with their mobile or fixed Internet subscriptions, which opens up a lot of opportunities for telecommunications companies (telcos) and OTT media providers to gather more consumers in the future.
"I think we are in mid-revolution. The traditional delivery of information, like cable and satellite, is clearing its path, and everything is moving to OTT media these days. Telcos are not just telecommunications providers but they are also media powerhouses that are capable of creating their own content," said Lior Friedman, Vice President for Global Business Development for Amdocs Media, adding that telcos and OTT media providers will be offering more interesting bundles to attract more consumers.
On the other hand, with the "new normal" brought about by the COVID-19 pandemic causing more Filipinos more hooked up to the Internet, the situation has also amplified OTT media consumption in the Philippines. "The study was done very recently. We wanted to make sure that our findings still hold true in the pandemic landscape. The trends that we see are befitting for the new normal as well," said Maya Barkay, Head of Marketing for Amdocs in Asia Pacific.