Tài liệu Factors affecting intention to subscribe svod in vietnam

VIETNAMxNATIONALxUNIVERSITY, HANOI VIETNAMxJAPANxUNIVERSITY --------------------------- LE PHU KHANH FACTORS AFFECTING INTENTION TO SUBSCRIBE TO SUBSCRIPTION VIDEO ON DEMAND SERVICES INxVIETNAM MASTER’S THESISx Hanoi, 2020 VIETNAMxNATIONALxUNIVERSITY, HANOI VIETNAMxJAPANxUNIVERSITY --------------------------- LE PHU KHANH FACTORS AFFECTING INTENTION TO SUBSCRIBE TO SUBSCRIPTION VIDEO ON DEMAND SERVICES INxVIETNAM MAJOR:xBUSINESS ADMINSTRATION CODE:x8340101.01 RESEARCHxSUPERVISORS: Prof. Dr. MOTONARI TANABU Dr. TRAN HUY PHUONG Hanoi, 2020 ACKNOWLEDGMENT First of all, I would like to give my thanks to Prof.Dr. Montonari Tanabu and Doctor Tran Huy Phuong for helping and give me a lot of valuable advice during the time I was conducting this master thesis. Second, I would like to thank Prof. Matsui, Hanh sensei, Hino sensei, Tuan sensei for giving me comments to improve my thesis on internal defense on 20th May. Moreover, I would like to thank the reviewers, including Prof. Matsui, Prof.Morita, Hanh sensei. Tuan sensei, Lien sensei for giving me comments on final defense on 24th June. In addition, I would like to give many thanks to my family, who has supported me and motivated me a lot in the time I got difficult in doing the thesis. Finally, I would like to give many thanks to my friends, the participants who have supported me to complete the survey Table of Content ACKNOWLEDGMENT LIST OF TABLES LIST OF FIGURES LIST OF ABBREVIATION CHAPTER 1: INTRODUCTION ................................................................................. 1 1.1 Research Background ......................................................................................... 1 1.2 Research Objective ............................................................................................. 4 1.3 Research Question .............................................................................................. 4 1.3 Research Subjective and Research Scope .......................................................... 4 1.4 Research Contribution ........................................................................................ 4 CHAPTER 2: LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT .......................................................................................................... 6 2.1 Review of related definition and previous research ............................................... 6 2.1.1 Definition of OTT platform............................................................................... 6 2.1.2 Definition of Streaming .................................................................................... 6 2.1.3 Definition of Video on demand (VOD) ............................................................. 7 2.1.4 Definition of Subscription Video on demand (SVOD) ..................................... 8 2.1.5 Related research & research gap ..................................................................... 9 2.2 Review of the relevant theoretical model of technology adoption: ...................... 14 2.2.1 Theory of reasoned action (TRA) ................................................................... 14 2.2.2 Theory of planned behavior (TPB)................................................................. 15 2.2.3 Technology acceptance model (TAM) ............................................................ 15 2.2.4 Unified theory of acceptance and use of technology (UTAUT) ..................... 16 2.2.5 Reason why the author choosing UTUAT2 as theoretical framework ........... 18 2.3 Hypothesis development and conceptual model .................................................. 18 2.3.1. Performance Expectancy ............................................................................... 19 2.3.2. Effort Expectancy .......................................................................................... 20 2.3.3. Social Influences............................................................................................ 21 2.3.4. Hedonic Motivation ....................................................................................... 21 2.3.5. Price Value .................................................................................................... 22 2.3.6. Facilitating condition .................................................................................... 23 2.3.7. Consumer Innovativeness .............................................................................. 23 2.3.8. Media exposure ............................................................................................. 24 2.4 Research conceptual model .................................................................................. 27 CHAPTER 3: METHODOLOGY .............................................................................. 28 3.1. Research process .................................................................................................. 28 3.2. Sampling and data collection ............................................................................... 29 3.3. Sample Population ............................................................................................... 29 3.4. Variable and Measuring Instrument .................................................................... 29 3.5. Analysis Method .................................................................................................. 32 3.5.1 Descriptive analysis ....................................................................................... 32 3.5.2 Inferential analysis ......................................................................................... 33 CHAPTER 4: ANALYSIS RESULTS ....................................................................... 36 4.1 Data Description ............................................................................................... 36 4.2 Reliability analysis ........................................................................................... 38 4.2. Explanatory Factor Analysis ............................................................................ 38 4.3.1 Explanatory Analysis for independent variable ........................................ 38 4.3.2 Explanatory Analysis for dependent variable............................................ 40 4.3.3 Explanatory Analysis for moderation variable.......................................... 40 4.3. Regression Analysis ......................................................................................... 41 4.4. Moderation Analysis......................................................................................... 42 4.5 Hypothesis tested results .................................................................................. 44 CHAPTER 5: DISCUSSION AND CONCLUSION................................................. 46 5.1. Finding and Discussion........................................................................................ 46 5.2. Contribution of the thesis..................................................................................... 50 5.3. Implications for SVOD service providers ........................................................... 50 5.4. Limitation and future research direction.............................................................. 52 REFERENCES ............................................................................................................. 54 APPENDIX 1: Questionnaire...................................................................................... 65 APPENDIX 2: Cronbach’s alpha analysis................................................................. 75 APPENDIX 3: Explanatory Analysis ......................................................................... 80 APPENDIX 4: Pearson Correlation Analysis ........................................................... 84 APPENDIX 5: Regression analysis ............................................................................ 85 APPENDIX 6: Moderation Analysis .......................................................................... 86 LIST OF TABLES Table 2.1: Construct's definition ...................................................................................... 19 Table 3.1: Measurement Scale of thesis ........................................................................... 30 Table 4.1: Cronbach’s alpha for all variable .................................................................... 38 Table 4.2: EFA Results for Independent variable ............................................................ 39 Table 4.3: EFA Results for Dependent Variable ............................................................. 40 Table 4.4: EFA Results for Moderator ............................................................................. 40 Table 4.5: Results of Pearson Analysis ............................................................................ 41 Table 4.6: Results of regression analysis ......................................................................... 41 Table 4.7: Moderation analysis by Hayes ........................................................................ 43 i LIST OF FIGURES Figure 2.1: Results study of Cerbeci et al (2019) ........................................................... 9 Figure 2.2: Results study of Ramírez-Corre et al (2018) .............................................. 10 Figure 2.3: Research results of Sardanelli et al (2019) ................................................. 11 Figure 2.4: Theory of reasoned action (Fishbein & Ajzen, 1975) ................................ 14 Figure 2.5: Theory of planned behavior (Ajzen, 1991) ................................................ 15 Figure 2.6: Technology acceptance model (Davis, 1989) ............................................ 16 Figure 2.7: Unified theory of acceptance and use of technology UTAUT (Venkatesh et al., 2003) ................................................................................................. 17 Figure 2.8: Unified theory of acceptance and use of technology UTAUT2 (Venkatesh et al., 2012) ................................................................................................. 18 Figure 3.1: Research Model Proposed by Author ......................................................... 27 Figure 4.1: Age group of respondences ........................................................................ 27 Figure 4.2: Descriptive data of current users ................................................................ 37 Figure 4.3: Descriptive data of SVOD references channel ........................................... 37 ii LIST OF ABBREVIATION OTT Over-the-top SVOD Subscription Video on demand TAM Technology Acceptance Model TPB Theory of Planned Behavior TRA Theory of Reasoned Action UTAUT Unified Theory of acceptance and use of technology UTAUT2 Extended Unified Theory of acceptance and use of technology VOD Video on demand iii CHAPTER 1: INTRODUCTION 1.1 Research Background Today, thanks to the advancement of technology, people have changed the way they consume media (Shim & Kim, 2018). The development of Broadband Internet paved the way for the multimedia industry to shift from traditional Cable TV to OTT Streaming (Over-the-top Streaming). OTT is superior to the traditional Cable TV because of 2 characteristics: mobility and internet (Kim et al., 2016). Thus, OTT streaming has become the technology preferred by consumers to entertain (Shim et al., 2018). OTT streaming is well-known for its service called Subscription video on demand (SVOD). During 2010, the SVOD market was still in the early stage, with the domination of Netflix. However, in 2019, there were a lot of big players joining the SVOD industry, such as Apple, Disney, and WarnerMedia, which pave a new era for the SVOD market known as the name “Streaming Wars” (Ben, 2019). The predict of Pwc Global Entertainment and Media Outlook report showed that the size of this market will be doubling up to $72.8 billion. Other results showed that in 2018, traditional cable TV firms had less than 3 million users, while SVOD services revenue increased from 30 billion USD by 2016 to 68 billion USD by 2018 (Yen, 2019). Despite the success of SVOD in the world, the number of people using this service is still limited in Vietnam. According to the figure of Authority of Broadcasting and Electronic Information in 2020, the number of users of the whole SVOD market in Vietnam was 10 million users, which accounts for only 10% market penetration (VTV, 2020). Even the big firm in this industry like Netflix, which has 130 million subscribers in the world (Louis, 2018), is having a low number of users in Vietnam. According to ictnew.vn, the number of Netflix subscribers in Vietnam was only 300.000 users, which accounts for just only about 0.31% of the total Vietnamese population (Minh, 2019). Despite the low adoption 1 level, there still positive evidence showing that this industry has the potential to grow in Vietnam. By the analysis of Statista.com in 7/2019, there are more than 54% of Vietnamese frequently using the Internet, and these people will increase by 38% in 2023. Also, another figure showed that Vietnam users spend 6-7 hours each day using the Internet, mainly for entertaining (Statista, 2020). In Vietnam, there are 36 SVOD firms. The foreign firms in this industry are Netflix, Apple TV,.. and the most famous Vietnamese firms in this industry are ClipTV, FPT play. VTVcab ON, VTC Now, My K+ NOW,… .The revenue growth of the SVOD industry in Vietnam is predicted by up to 113% by 2023 (Statista, 2020). Many foreign SVOD companies are interested in this market. For example, the leader of Netflix – one of the big firms in the SVOD industry had a meeting with the Head of the Government Office to make an agreement about entering Vietnam in November 2019 officially (Luu, 2019). This evidence shows that Vietnam is a potential as well as high competition for exploit such online entertainment services like SVOD. For an industry that started to grow like SVOD in Vietnam, since the number of SVOD users in Vietnam was still limited, the finding of consumer insight and user’s psychology in subscription intention to SVOD is necessary. Recently, the number of studies on SVOD is really limited. In previous studies, some key factors had been proved to have an impact on subscription intention. The most common factors were perceived usefulness and perceived ease of use (Cebeci et al., 2019; Ramíez-Correa et al., 2017; Sardanelli et al., 2019; Lee et al. 2018). For instance, Cebeci et al (2019) using Technology Acceptance Model (TAM), found out that a person who had the perception of usefulness would have the intention to use Netflix in the context of Istanbul, other remaining factors in Cebeci’s study are Perceived Ease of Use, Knowledge and Technology Anxiety. In addition, RamíezCorrea et al. (2017) found that a person who had a high enjoyment perception of Netflix would highly have the behavioral intention of using Netflix. Some other scholars approached at the angle of movie piracy, which concluded that Moral Judgement and Product Involvement were the two key factors which affecting 2 subscription intention of movie streaming service by using TPB as a based model (Sardanelli et al., 2019). Although studies about SVOD investigated the subscription intention from different angles, there still theoretical gaps that needs to be filled. First, to the best of the author’s knowledge, most studies were looking at one company (in this case, Netflix) rather than identify factors affecting behavior intention for a whole industry like SVOD, especially in Vietnam. Second, there is a lack of research applied UTAUT2 to the domain-specific case like SVOD industries. Finally, previous studies were focusing on piracy, technology, finance factors. There was a lack of factors related to mass media as well as factors related to consumer’s traits to the behavioral intention of SVOD users. About UTUAT2, this model was the latest one in technology adoption. Venkatesh et al. (2012) mentioned adding moderator as the way to expand the theory of UTAUT2. Following Vankatesh’s suggestion, many tried to test the role of Age, Gender, Personalization,… as a moderator to UTAUT2. But to the best of the author, there is no research added Media Exposure to UTAUT2 as a moderator. There is reason to prove that Media Exposure can have a moderating effect. The fact that consumers made their decision based on the information they gained. The amount of information from media exposure can affect the cognitive function of a person (Christakis et al. 2018). According to DeFleur, Melvin, and Everett Dennis (1998), enough frequency of media exposure could change one person’s behavior and belief. Because of that, Media Exposure can be treated as a moderator. The thesis will test the role of Media Exposure whether it has a moderating effect on the UTAUT2 construct. In conclusion, based on theoretical and practical motivation, the author conducts study names “Factors affecting intention to subscribe to SVOD services in Vietnam” as an MBA thesis topic. 3 1.2 Research Objective There is a lack of research applied UTAUT2 to understand consumer’s intention to subscribe to SVOD. Therefore, this thesis will test UTAUT2 in the SVOD context as empirical evidence contributes to the SVOD studies. The thesis also tests the role of Consumer Innovativeness and moderating effect of Media exposure to the UTAUT2 model to expand the approach of Media exposure as moderators and contribute to the theory of UTAUT2. 1.3 Research Question Based on the research motivation, both theoretical and practical, this study answers the following question: 1. What are the factors that significantly influence users’ adoption of Subscription video on demand in Vietnam? 2. Can Media Exposure moderate the relationship between the independent variable and subscription intention of SVOD in Vietnam? 1.4 Research Subjective and Research Scope - Research Subjective The subject of the research will be “Factors affecting intention to subscribe to SVOD of Vietnamese people who already have acknowledged about this service”. - Research Scope The scope of thisxstudyxwill mainly in Hanoi because they have a huge amount of people in general and have already aware of SVOD service. This study will have a time range from 2019 to 2020. 1.5.Research Contribution - Theoretical contribution 4 The thesis applied UTUAT2 since there is no literature of SVOD applied UTAUT2 in the SVOD context, especially in Vietnam there has no study related to subscription video on demand. The study also confirmed the previous finding of Consumer Innovativeness on intention behavior in SVOD context. The study also found the Moderating effect of Mediaxexposurexon thexrelationship between Hedonic Motivation and Intention Behaviors. The finding contributed to the UTAUT2 theory because this is the early study that investigates the moderating role of media exposure to UTAUT2. - Practical contribution The thesis had proposed several solutions to increase the number of subscribers for SVOD service providers. 5 CHAPTER 2: LITERATURE DEVELOPMENT REVIEW AND HYPOTHESIS 2.1 Review of related definition and previous research 2.1.1 Definition of OTT platform According to the Ministry of Information and Communication of Vietnam (MIC, 2019), Over-the-top (OTT) platform is the media service that uses the internet to transfer content and added values to consumers. OTT platform provides content directly to the Internet rather than provides under the management of any Internet Service Provider. Thus, it paves a way for OTT platform users to access content on many different devices. Another feature of OTT is the recommendation system that supports users to find content that they needed easily. There are three types of OTT services. The first one is OTT television, usually called streaming video. The example for this type are subscriptionxvideoxonxdemand (SVOD) firms such as Netflix, Amazon Prime, Hulu, … The second types of OTT are OTT messaging/voice calling services. OTT messaging/voice calling can be defined as an instant messaging/ voice calling service provided by the third party as an alternative to traditional SMS. The most well-known brand for these types is WeChat, Skype, Viber, Zalo,... The final types of OTT platform types are OTT music, known as music streaming. Examples of these types are Spotify and YouTube Music (Technavio, 2019). This study will only be focusing on the first types of OTT, which is video streaming. 2.1.2 Definition of Streaming According to Oxford Dictionaries, Streaming is a method of sending or receiving data (video and audio material) through the internet in a continuous stream (Oxford University Press, 2019). Streaming is similar to the television broadcast, the only difference is that streaming delivers content through the internet 6 (Austerberry, 2005). In a television broadcast, content is pushed to the user on a certain schedule. With streaming, users can choose content, generally through interaction with the web provider's service. There are three ways to transmit multimedia content, listed below: a. Download Content can be played by users after they have downloaded from the severs. The multimedia file received will be stored on computer storage media. After received the multimedia file successfully on the user’s side, the user can access the content. b. Progressive Download Progressive download is defined as the media that can be played a few seconds after the download process begins. Progressive download is similar to streaming, but the media in this type still through the process of downloading, or other terms called pseudo streaming. c. Streaming The media can be played directly without going through the download process. Through this transmission process, parts of the media are received on the user’s side can be played immediately. Based on the above definition, it can be concluded that streaming is a method of transferring content to the user via the web in real-time and can be watched without having to wait for downloaded. 2.1.3 Definition of Video on demand (VOD) According to the research of Chen with his collaboration (2014), video on demand (VOD) can be understood as a system that allows users to be able to choose and watch videos that they want regardless of time and place. The VOD system can enable users to gain control over the media they watch. 7 Until now, there are many videos on-demand services on the internet which provide free video content such as Youtube, Vimeo, Dailymotion, and others. Users of the service can enjoy content videos that have been uploaded by creators from various fields, such as food, beauty, automotive, music, film, technology, and so on. Based on the above definition, it can be concluded that the video on demand is a system for watching video shows in a manner interactive where users can freely choose the content and be able to control the content. 2.1.4 Definition of Subscription Video on demand (SVOD) Subscriptionxvideoxonxdemand (SVOD) is defined as a service where users are charged a subcription fee (generally per month) to be able to choose and enjoy content freely provided by the SVOD service providers at any time and anywhere as long as users are connected to the internet (Wayne, 2018). By using OTT technology, SVOD services can have the ability to help users search for entertainment content easily with the help of a recommendation system using A.I and Big Data (Xavier, 2013). SVOD is also defined as an online entertainment service where users are charged monthly to access to a streaming library consisting of films, television shows and other media content (Stastista, 2019a) In the world such as Netflix, ESPN+, Hulu, and Vietnam such as FPT Play, K+ Now, Clip TV are some examples of SVOD technology. The number of SVOD users in the whole world is going up rapidly from around 283 million users a year by 2018 to 411 million users by 2022. The younger generation is the one who spends most of the time using SVOD, with users aged 18-24 years spend an average ofx39 minutes per day using SVOD services (Stastista, 2019a) Based on the above definition, it can be concluded that the subscription video on demand is a service provided content such as films, television series, documentaries. SVOD service providers require a monthly subscription fee, after paying the fee users can access SVOD’s content anywhere and at any time. One of 8 the remarkable features of OTT in general as well as SVOD comes from a recommendation system that helps users find their entertainment content faster. 2.1.5 Related research & research gap Related Research Recently, there are a few authors have mentioned about subscription intention of SVOD. The detail of each research is mention at the following: Cebeci et al. (2019) were one of the pioneer studies in SVOD with the topic “Understanding the Intention to Use Netflix: An Extended Technology Acceptance Model Approach”. UsedxTAMxasxa based theoretical framework on Istanbul context, the study found out Attitude had a direct effect on the intention to use, Perceived Usefulness influenced attitudes, support by the moderating effect of technology anxiety, Knowledge andxPerceivedxUsefulness, affected Self-efficacy had both a PerceivexEasexofxUse positive effect on PerceivedxEase ofxUse. x Figure 2.1: Results study of Cerbeci et al (2019) Cerbeci and his team succeeded in building a comprehensive model predicting intention to subscribe to Netflix. However, the study still had some limitations. First, this study conducted only in Istanbul, so the generalizability of the finding is still a constraint. Second, the factors mentioned are mostly looking at the aspect of technology. In reality, subscription intention can be affected by other factors such as Price, Perceived Quality,... 9 Another scholar - Ramírez-Corre with his partners (2018) conducted a topic name “The acceptance of Netflix: a study using structural equations” to investigate customer intention of using Netflix in Brazil. The study followed quantitative analysis using TAM for the hedonic information system suggest by Heijden (2004). The result found out that Perceived Usefulness, Perceived Ease of Use, Perceived Enjoyment have a positive relationship with behavior intention, moderating by Experiences. Figure 2.2: Results study of Ramírez-Corre et al (2018) The study has confirmed one of the major findings of Heijden (2004), augured the importance of two factors about the perception of useful and easy to use, which came from the TAM model. Ramirez mentioned that under the context of the hedonic information system, the role of Perceived Enjoyment is more important than the remaining factors. The limitation of the research is that Ramirez-Corre just only focusing on four factors: PerceivedxUsefulness, Perceived Ease ofxUse, x Perceived Enjoyment, and Experience. The study of Lee et al (2018) name “Factors Affecting Online Streaming Subscriptions” investigated the switching intention of consumers from traditional TV to online streaming service by compared between traditional TV users and online streaming users. The results found only Social Trend, Media Option, and Age had significant on subscription intention behavior of online streaming. The 10 sample of study still had some limitations while the majority of respondence mostly from young as 18 to older as 34 age range, which the results tend to represent for young users. A qualitative analysis study had been conducted by Dasgupta and Grover (2019) with the topic “Understanding Adoption Factors Of Over-The-Top Video Services Among Millennial Consumers in India”. The study found the most important feature which leads to the adoption of OTT video service is Convenience, Content, Mobility, Cost. The research did not have a high generalizability level since it was conducted only in two cities of India. Also, OTT service is a nascent concept in India, so the finding may not fully understand the insight of consumers toward OTT video services. Sardanelli et al (2019) investigated the intention to subscribe to movie streaming services in Italy from the perspective of illegal downloading using TPB. The study included variables such as Product Involvement (INV), Subjective Norm (SN), Frequency of Past Behaviour (FNB), Moral Judgement (MORAL), Perceived Risk (RISK), Attitude (ATT). The study found out that attitude, frequency of past behavior, and involvement have an important role in explaining the subscription intention of movie streaming services. Figure 2.3: Research results of Sardanelli et al (2019) The study still has some drawbacks such as limited sample and the level of digital privacy in Italy is still high. Longitudinal research was suggested in future studies. 11