The diffusion of innovation theory outlines how, why, and at what rate new ideas, products, or technologies spread among consumers.

It categorizes consumers into five groups based on their adoption rate.

Consider a new OTT platform. Innovators would be the first to subscribe to the product immediately after its launch. They are affluent, educated, and risk-takers.

The Early Adopters would follow. They are influential opinion leaders subscribing to the platform, who might also start a trend for a new show by providing recommendations.

The Early Majority is cautious, awaiting feedback and endorsements from Early Adopters before trying and subscribing.

The Late Majority will wait and subscribe only when the product becomes mainstream, prioritizing functionality and affordability over novelty.

Lastly, Laggards resist change and are the last to adopt new products. They might still rely on traditional methods like cable TV while others move on to newer technologies.

The theory helps to strategically manage the timeline of marketing initiatives and identify influencers and opinion leaders for promotion.

It also enables monitoring and management of the product lifecycle.