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As situational changes result in changing consumption patterns, this study aims to understand the entertainment consumption shifts during and after the COVID-19 pandemic lockdown. Particularly, how users’ habits and use behavior have changed and how these constructs subsequently impact their continuance intention has been investigated. The study proposes a research model based on customer value and habit theory.

The study proposes a research model based on customer value and habit theory. The data collected during (n = 192) and after (n = 138) COVID-19 situation in the over-the-top (OTT) platforms setting through purposive sampling was analyzed using partial least square structural equation modeling (PLS-SEM).

The study elucidates that customer perceived value (utilitarian and hedonic values) impacts habit and continuance intention in different situations: during and after COVID-19. It was also shown that habit partially mediates the influence of utilitarian and hedonic values on continuance intention. Further, the extent of use had a negative moderation effect on the habit-continuance intention relationship during COVID-19 but did not moderate the relationship in the post-COVID-19 situation. Finally, it was demonstrated that the effect of utilitarian value increased, whereas that of hedonic value decreased on the continuance intention of OTT platforms in the after-COVID-19 situation compared to during COVID-19.

Although set up in the OTT context, the practitioners from other online entertainment services, and any online service in general, may utilize the study findings to reinforce habit and continuance intentions to address unwanted consequences due to situational changes. The study suggests to the OTT service providers ways to facilitate the habit formation of OTT users. The study recommends constant monitoring of the extent of the use of OTT consumers and user engagement tactics for nurturing the OTT consumption habits of heavy users. The recommendations for maintaining and strengthening the perceived value-continuance intention relationship were also made, which would help the OTT service providers immensely.

The study establishes the mediation effect of habit and the robustness of perceived value in determining continuance intention in varying situations. The results also highlighted the changes in the impact of perceived value and habit on the continuance intention of OTT platforms. The study also advances the literature by demonstrating the differential influence of the extent of use on the habit-continuance intention relationship during and after COVID-19.