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Study Regarding Internet Protocol Television Essay

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STUDY REGARDING INTERNET PROTOCOL TELEVISION: FACTORS INFLUENCING ITS INTENTION TO USE

THESIS
RESEARCH

By
Janice Anastasia Laoda - 1200962675

BINUS INTERNATIONAL
BINUS UNIVERSITY
JAKARTA
(2012)

BINUS INTERNATIONAL
BINUS UNIVERSITY

Information Systems Major

Sarjana Komputer Thesis
Semester Even year 2012

STUDY REGARDING INTERNET PROTOCOL TELEVISION: FACTORS INFLUENCING ITS INTENTION TO USE IN JAKARTA

Janice Anastasia 1200962675

Abstract
Objectives
To identify factors that will affect the respondent’s intention to use Internet Protocol Television in Jakarta. Method
The research is done quantitavely and the data collection method being used is survey or questionnaire. The author decides the framework into four model in order to get the result. Specifically, the statistical analysis being used is Compare means, Simple Linear Regression, Coefficient. Results

The research result that there are 5 factors that relate its intention to use of Internet Protocol Television in Jakarta (Perceived Usefulness, Perceived Security, Attitude, Perceived of Cost, Perceived Playfulness), and there are 2 factors that positively related to Perceived Usefulness (Perceived Control, and Perceived Quality of Services), and there are 2 factors that positively related Perceived Playfulness (Perceived Control, Perceived Content of Quality), and there are 4 factors that positively related to Attitude towards Internet Protocol Television in Jakarta (Perceived Usefulness, Perceived Quality, Perceived Content Quality, Perceived Playfulness).

Conclusion
There are 9 variables that the author uses to identify the factors that affect the customer’s intention to use IPTV; there are also some mediated variables that the author uses in this thesis’s framework. The perceived quality of the content and system were found to have a significant effect on perceived usefulness and perceived playfulness. In addition, perceived control was found to have a significant effect on both extrinsic and intrinsic motivation. A significant relationship was also found between consumer- perceived security and intention. There is one variable that shows no significance influence between the independent (Perceived Cost) and dependent variable (Intention to Use), the result shows that Perceived Cost is less of an issue for user’s intention to use IPTV. For further study it is recommend analyzing the adoption and user satisfaction of IPTV in Indonesia. Finally, this research has educated and enhanced our knowledge of the emerging trend of technology convergence and importance in acquiring customer preference and other strategies.

ACKNOWLEDGEMENT

This title entitled “STUDY REGARDING INTERNET PROTOCOL TELEVISION : FACTORS INFLUENCING ITS INTENTION TO USE” is proposed to fulfill the requirement for completion author’s undergraduate degree in Information System at Bina Nusantara International University.

First and foremost, the author would like to express deepest gratitude to Jesus Christ, for His blessing and guidance in Author’s life and without Him this dissertation would not have been possible.

Another thanks also given to several individuals who in one way or another contributed and extended their valuable assistance in the preparation and completion of this study, without the guidance and the help from them this thesis would not be completed:

* To author’s family, Felix Agung Laoda as my Father, Grace Muliawati as my Mother, Jessica Agustina Laoda as my younger sister, and Jennifer Angelina Laoda as my youngest sister, for their support, prayers, and love during this thesis writing and my whole life. * To my boyfriend, Ivan Lukianto, thank for his patience, love and support, not only during this thesis but during the author’s life. His support and suggestions mean a lot for me. * Ms. Nathalia Devina Widjaja, MbusSys, MPA, as the author’s thesis supervisor, for her patience, support, knowledge, and guidance during the writing of the thesis. * Ms. Minsani Mariani, MBA, Head of undergraduate Information System School, for her support during the author’s study at BINUS University. * Mr. Mathias Dharmawirya, B.Eng (Hons)., M.Sc., Program Coordinator of Undergraduate Information System Schoo, for his support and suggestion during the author’s study at BINUS University. * Mr. Ahmad Seiichi Ramadhan, SE., MM, Research Coordinator of Binus Business School, for his time, support and guidance during the statistical part of this thesis. * Ms. Nila Krisnawati, SE.,M.M, for her help to distribute the questionnaire and for her support and suggestion for this thesis. * All lecturers from BINUS International for being the friendliest lecturers during the author’s life at the university. * Mr. Harianto Rickseir Widjaja, for his time, knowledge, support, and compassion for his help writing this thesis correctly in terms of the language grammar. * My best friends, Jocelyn Kianto, Venisia Liu, Yolancia Cindy, Melina Sudarto, Yashinta Salim, and Ryan Jane, for their love, support and help to distribute the questionnaires. * Yesiska Lukianto, for her support during the author’s life and during this thesis. * Marshellia Lawrence, for her support and help the author to access to several online library to get all the resources that the author’s needed. * My colleagues Angellie, Nadhira Fatikhani, Steven Widjaja, Ardy Tedjawidjaja, Anthony Eka Widjaja, David Chen, Hendra Wahab, Suryanto Susanto, Elvi Jayanti, Jeffry Suryaputra, Felix Yuwono, Prima, Dhimas Awliya Rasyid, William, Vienna Rossa, Susanto Hendry, Willy, Calvin, Andrew Winata, Angel, Riady Kurniawan and Vincent Muljono for their friendship and togetherness during the author’s university life. * All Information Systems students batch 2012 for the memorable friendship. * All respondents that had filled the author’s questionnaires. * Everyone else whose names cannot be mentioned one by one that have support the author’s in every possible way.

TABLE OF CONTENTS

Cover Page i
Title Page ii
Certificate of Approval for Softcover copy iii
Statement of Examiner iv
Abstract vi
Acknowledgement vii
Table of Contents ix
List of Table and Figures
CHAPTER 1 INTRODUCTION 1
1.1 Background 1
1.1.1 The History of Media Technology Development in Television Environment 1 1.1.2 The Development of Internet................................................................................1 1.1.3 The Rise of IPTV..................................................................................................2 1.1.4 The difference between IPTV and Internet TV................................................3 1.2 Perceived Problems 4

1.3 Scope 4
1.4 Aim and Benefit 5
1.4.1 Aim ...............................................................................................................5
1.4.2 Benefit ..........................................................................................................5 1.5 Structures 6
CHAPTER 2 THEORETICAL FOUNDATION 8
2.1 Theoretical Foundation 8
2.1.1 Revolution of Internet Protocol Television 8
2.1.1.1 The Analog to the Digital Evolution 8
2.1.1.2 The Problem Become an Opportunity 10
2.1.2 The Convergence of Television and Internet 11
2.1.2.1 Internet Television 11
2.1.2.2 Internet Protocol Television 14
2.1.2.1 Benefit 21
2.1.2.2 Limitation 22
2.2 Technology Acceptance Model 23
2.2.1 Perceived Usefulness 24
2.2.2 Perceived Enjoyment 25
2.2.3 Perceived Content Quality 26
2.2.4 Perceived Quality of Services 28
2.2.5 Perceived Security 28
2.2.6 Perceived Cost 28
2.2.7 Perceived Control 29
2.3 Theoretical Framework 31
CHAPTER 3 RESEARCH METHODOLOGY 34
3.1 Aim of Research 34
3.2 Hypotheses 34
3.3 Research Design 35
3.3.1 Purpose of Study 36
3.3.2 Type of Investigation 36
3.3.3 Extent of Researcher Interference 37
3.3.4 Study Setting 37
3.3.5 Measurement and Measure 37
3.3.6 Unit of Analysis 38
3.3.7 Sampling Design 38
3.3.8 Time Horizon 39
3.3.9 Data Collection Method 39
3.4 Questionnaires 40
CHAPTER 4 RESEARCH FINDINGS 43
4.1 Validity and Reliability 43
4.1.1 Reliability 43
4.1.2 Validity 44
4.1.2.1 Perceived Usefulness 44
4.1.2.2 Content Quality 45
4.1.2.3 Quality of Services 46
4.1.2.4 Perceived Playfulness 47
4.1.2.5 Attitude 47
4.1.2.6 Intention to use 48
4.1.2.7 Perceived Control 49
4.1.2.8 Perceived Cost 50
4.1.2.9 Perceived Security 51
4.2 Descriptive Statistics 52
4.2.1 Age 53
4.2.2 Occupation 53
4.2.3 Gender 53
4.3 Inferential Statistics 54
4.3.1 Demographic Status of Respondents 55
4.3.1.1 Age 55
4.3.1.2 Gender 61
4.3.1.3 Occupation 62
4.3.2 Simple Linear Regression 63
CHAPTER 5 DISCUSSION 75
CHAPTER 6 CONCLUSION & RECOMMENDATION 86
6.1 Conclusions 86
6.2 Recommendations 88
REFERENCES 90

List of Tables and Figures

Figure 2.1 The transition from Analog to Digital [10] 10
Figure 2.2 MiVo TV (Indonesia) 13
Figure 2.3 Metro TV News (Indonesia) 13
Figure 2.4 ABC News (United States) 14
Figure 2.5 BT Vision (British Telecom) 16
Fig 2.6. Groovia (Telkom Indonesia) 16
Fig 2.7. The component of fiber optic cable [13] 17
Fig 2.8. Diagram of optical fiber communication system. [13] 18
Table 2.9 Difference between broadband TV (IPTV), and Internet video streaming (Internet TV). [12] 19
Fig 2.10. Technology Acceptance Model (TAM) (Davis et al, 1989) 23
Fig 2.11. Technology Acceptance Theory by Sandra Weniger 2010 [27] 26
Fig 2.12. Technology Acceptance Theory by Hyori Jeon, Yonghee Shin, Munkee Choi, Jae Jeung Rho, and Myung Seuk Kim (2010) [29] 26
Table 2.13 Previous Study 29
Fig 2.14. Theoretical Framework by Dong Hee Shin [17] 31
Figure 3.3. Research Design [37] 35
Table 4.1 Reliability Statistics 45
Table 4.2 Reliability of Perceived Usefulness 47
Table 4.2 Validity of Perceived Usefulness 47
Table 4.3 Reliability of Content Quality....................................................................47 Table 4.3.1 Validity of Content Quality...................................................................48 Table 4.4 Reliability of Quality of Services.............................................................48 Table 4.4.1 Validity of Quality of Services..............................................................48 Table 4.5 Reliability of Perceived Playfulness.........................................................49 Table 4.5.1 Validity of Perceived Playfulness .........................................................49 Table 4.8 Reliability of Attitude...............................................................................50 Table 4.8.1 Validity of Attitude................................................................................50 Table 4.10 Reliability of Intention to Use.................................................................50 Table 4.10.1 Validity of Intention to Use.................................................................51 Table 4.11 Reliability of Perceived Control.............................................................51 Table 4.11.1 Validity of Perceived Control..............................................................51 Table 4.12 Reliability of Perceived Cost..................................................................52

Table 4.12.1 Reliability after deleted………………………………………………53
Table 4.13 Reliability of Perceived Security............................................................53 Table 4.13.1 Validity of Perceived Security.............................................................54

Figure 4.14 Age.........................................................................................................54 Figure 4.15 Occupation.............................................................................................55

Figure 4.16 Gender....................................................................................................56
Table 4.18 Multiple Comparisom of Age..................................................................59 Table 4.19 Independent Sample Test of Gender........................................................64

Table 4.21 Model Summary of PC............................................................................66 Table 4.21.1 ANOVA test of PC, PU………………………………………………67 Table 4.22 Model Summary of PQS.........................................................................67 Table 4.22.1 ANOVA test of PQS, PU....................................................................68 Table 4.23 Model Summary of PC...........................................................................68 Table 4.23.1 ANOVA test of PC, PP....................................................................

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