Paradigm-shifting ICTs in the media industry

Abstract

The introduction of ICT has significantly transformed the media industry, in terms of how services are provided as well as how consumers access content. In order to analyze the evolution of the media industry, this research empirically examines the impacts of paradigm-shifting ICTs in the media industry from the consumer perspective, focusing on three representative cases. The first study investigates the development of the music streaming industry. With the widespread use of mobile devices and increased availability of wireless networks, music streaming is replacing music downloads in the digital music industry. Furthermore, different business models are dominant in the US and Korean markets. This study attempts to estimate and compare US and Korean consumers’ marginal willingness to pay (MWTP) for streaming services using conjoint analysis. The results indicate that US and Korean consumers have different preferences and MWTP for product attributes. The second study focuses on the case of IPTV. IPTV is an important tool to change business structures and move beyond subscription-based business models for telecom operators. However, the level of IPTV penetration differs among operators. This study identifies the key factors influencing IPTV penetration rates. Results show that broadband penetration, broadband quality, telecommunications service fee, and broadband cap are important factors leading to greater IPTV penetration. Comparison of groups differing in IPTV penetration rates, GDP per capital, and percentage of urban population are conducted to gain additional insight into the contextual differences between countries. The third study examines the case of recommendation algorithms. As recommendation algorithms have been increasingly applied to content personalization services, scholars are voicing concern about the negative impacts of these algorithms. This research attempts to analyze the various factors influencing users’ continuance intention of recommendation algorithms through structural equation modeling. Based on the Expectation-Confirmation Model, this study proposes an extended framework to empirically examine the impact of confirmation, perceived usefulness, perceived enjoyment, perceived ease of use, perceived risk, and subjective norm on satisfaction and continuance intention. Results indicate that confirmation positively impacts satisfaction, perceived usefulness, and perceived enjoyment. This research explores how the advent of ICT in the media industry affects consumers, firms, and society at large. Focusing on the subjects of music streaming, IPTV, and recommendation algorithms, it provides managerial and regulatory implications.