Money for Nothing: An analysis of the gratifications motivating the purchase of non-compulsory video streaming subscription products
This study examines the gratifications sought by individuals purchasing non-compulsory products on otherwise free video streaming services. Applying uses and gratifications theory (UGT), ten gratifications are hypothesized to motivate the purchase of non-compulsory livestreaming products called “subscriptions” on the Twitch platform. Data was collected using a survey instrument and web scraping. Negative binomial, hurdle, and logistic regression analyses support four primary findings. (1) An increased desire for altruistic gratification positively influences the quantity of subscription products purchased and the quantity of subscriptions gifted to others. (2) An increase in the strength of a parasocial relationship positively influences both the quantity and quality of subscriptions purchased. (3) An increase in the desire for self-expression and social commitment positively influence the quantity of subscriptions purchased. (4) An increase in perceived social pressure and the desire for an elevated personal reputation negatively influence the likelihood of an individual purchasing their first subscription product. When taken with the relative size of the effect each gratification exhibits on subscription activity, the results benefit both theorists and practitioners. For the theorist, the results build upon previous UGT literature on livestreaming by showing evidence in favor of a relationship between social-gratifications sought and the purchase of non-compulsory livestreaming products while also expounding on the bi-directional effect of social-gratifications on initial subscription purchases. Additionally, the analyses identify previously unknown gratifications that motivate subscription purchases and the relative strength of these gratifications. Practitioners can benefit from this knowledge by using the results to design and market subscription products congruent with the gratifications sought from their purchase. Additional research should be pursued to further explain the socio-behavioral gratifications that uniquely motivate initial and subsequent subscription purchases.
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