Netflix & Spotify: comparing service loyalty factors and binge-watching motives

Abstract

Objectives: This study aims to find what the primary reasons for subscription renewal might be in businesses like Netflix and Spotify, and whether they would be the same as the nature of the services is different (movies/shows and music/podcasts). Previous research has thoroughly analyzed these factors, and this study aims to find which one of these factors is the most significant in both Netflix and Spotify. This study also looks at binge-watching motives, which are also now heavily researched, and this thesis aims to rank these motives and find whether there are similarities with previous research or not.

Summary: A survey was conducted that measured loyalty regarding Netflix and Spotify, while also measuring levels for the following factors: content, trust, consumer knowledge, web/app design and features. Respondents were asked several questions regarding these factors and through data analysis the ones that affected loyalty the most were found. Data on binge-watching motives was also gathered, and through an analysis of the means the top motives were analyzed.

Conclusions: The results that were found from this study indicate that content is the main reason why individuals choose to renew Netflix, whereas with Spotify individuals renew because of the trust they have in Spotify. Both Netflix and Spotify shared the top three factors, being content, trust, and price, although in different order for both services. The main binge-watching motive was ‘suspense and excitement, whereas the lowest ranking motive was ‘to feel a sense of accomplishment’.