INTERNET ACCEPTANCE AND ITS IMPACT ON THE TRADITIONAL TELEVISION BUSINESS

UoM administered thesis: Doctor of Business Administration

  • Authors:
  • Neeraj Sanan

Abstract

This thesis presents a framework to explain Internet acceptance by the television business and its impact on the traditional television business. This study applies an integrated research model, grounded on the theoretical constructs of the technology acceptance model (TAM) and diffusion of innovation theory (DIT), guided by past learnings (Yu and Tao, 2009) on advancement of TAM for businesses in the post decision stage. Thereafter, it uses explanatory sequential mixed methods to test the hypotheses and finalise the framework. Television business is an area where very few studies have been conducted. While earlier studies (Borders, 2003; Chan-Olmsted and Ha, 2003; Wirtz et al., 2013; Lugmayr and Zotto, 2016) identify Internet acceptance as having an impact on television but these studies have been piece meal attempts to investigate one or the other part of television business. This thesis is unique because it comprehensively identifies the factors affecting Internet acceptance and the impact of Internet acceptance on the traditional television business. The thesis is conducted in India which globally ranks among the top three geographies in terms of both television and Internet usage. It starts with a longitudinal study conducted over four years comparing viewership data of the top twenty-five television channels and their Internet products. Observations from the quantitative phase are used as input for the elite interviews with twenty-one CEOs in the television business. These CEOs collectively manage business at Two Hundred And Forty Two television channels which is more than Eighty percent of total Indian television business, making this a significant study. Learnings of the longitudinal study and elite interviews are integrated to present a framework that explains the factors influencing the decisions of television CEOs and the impact of Internet acceptance. The CEOs have a well-defined process of accepting the Internet, but they have not invested in research on Internet acceptance. This thesis is significant for working professionals, as television is typified within learning school of management (Oliver, 2013), where past learning impacts future strategies. This thesis revalidates the findings of earlier research (Teece, 2010) that, in media management, Internet companies devastate traditional business models but at the same time struggle to create their own business model. This thesis also revalidates (Chan-Olmsted and Ha, 2003) that television channels use the Internet only to complement the television stations’ core products as a support function. There is limited or no use of the Internet in cost or revenue functions. Consequently, there is not much of strategy in Internet acceptance. It is only about launching same or similar products on the Internet as the competitors. A key finding of this thesis is identifying over the top (OTT) player as the new trend from amongst different Internet products. Large television conglomerates have launched self-owned, separate OTT players as they consider it to be a broadcast business. In contrast, small television broadcasters have not launched their own players but are entering alliances, as they consider this to be an alternative distribution pipeline. Post launching Internet, viewership of the same television content on Internet products is found to significantly impact the television business, ratifying earlier findings (Dimmick et al., 2004; Logan, 2011 ; Cha, 2013; Goncalves et al., 2014; Doyle, 2016). Another key finding of this thesis is the moderating impact of the nature of content. Earlier studies (Picard, 2005; D’Arma, 2011) contrast two categories of television - those with a shelf life and those with no shelf life, which is corroborated by this thesis. In case of television channels with live content, viewership on the Internet is positively correlated to viewership on television. However, for channels having content with a shelf life, viewership on the Internet is negatively correlated to viewership on television. This thesis also makes several recommendations for future research. OTT is identified as a burgeoning area of study that requires a deeper understanding of strategy evolution, by player size and by geography. There is also a need to replicate this study in other geographies, as there may be differences in the way the television industry is structured. Overall, the explanatory sequential mixed methods analysis is found to be useful in understanding Internet acceptance and its impact, and can be duplicated to study Internet acceptance in other industry verticals. 

Details

Original languageEnglish
Awarding Institution
Supervisors/Advisors
Award date1 Aug 2022