Personalization's Role in Cord-Cutting and Continuance Intention for Streaming Services

The dynamics of information technology play an essential role in people's adaptation to digital products, particularly streaming video services. In the increasingly competitive Video on Demand (VoD) market, VoD platforms like Netflix leverage extensive content libraries and personalized recommendations as key competitive advantages. Personalization provides a compelling alternative to traditional television's one-size-fits-all model, enabling users to explore the vast selection of content, as well as providing a curated viewing experience. This study examines the impact of personalization on cord-cutting and continuance intention, through mediating factors of perceived advantage and perceived value. Findings from a national survey with 150 Indonesian Netflix subscribers show that personalized content recommendations directly influence users' intent to keep using VoD services. In contrast, personalization has a weak negative effect on cord-cutting intention, even when mediated by perceived advantage. These insights could be valuable for VoD platform providers in developing impactful strategies to maintain user engagement and attract new subscribers.