Factors influencing intention to use fpt play – a vietnamese video streaming service

VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY NGUYEN KIEU TRANG FACTORS INFLUENCING INTENTION TO USE FPT PLAY – A VIETNAMESE VIDEO STREAMING SERVICE MASTER’S THESIS VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY NGUYEN KIEU TRANG FACTORS INFLUENCING INTENTION TO USE FPT PLAY – A VIETNAMESE VIDEO STREAMING SERVICE MAJOR: BUSINESS ADMINISTRATION CODE: 8340101.01 RESEARCH SUPERVISORS: PROF DR INOUE TOHRU DR HINO YOSHIFUMI Hanoi, 2021 ACKNOWLEDGEMENT First of all, I would like to thank Prof Dr Tohru Inoue, Dr Yoshifumi Hino for enthusiastically guiding me and giving me valuable advice during my process of writing this thesis In addition, I would like to thank all professors and staff of Vietnam Japan University (VJU) in general, and MBA department, in particular, for their dedication to supporting students during their two years of pursuing course at VJU At the same time, I would also like to express my deep gratitude to all professors from Yokohama National University (YNU) who taught us during MBA course, as well as YNU IPO staff for their unwavering support throughout our 4-month online internship at YNU Finally, I would also like to thank my dear classmates for accompanying me through challenging exams and presentations Two years studying at VJU with them will be the most memorable days in my life TABLE OF CONTENTS LIST OF TABLES i LIST OF FIGURES .ii CHAPTER INTRODUCTION 1.1 Research background 1.2 Research purpose 1.3 Research questions 1.4 Research contribution 1.5 Structure of the research CHAPTER LITERATURE REVIEW 2.1 Definitions of video streaming service 2.1.1 OTT media service 2.1.2 Video streaming service 2.2 Overview of FPT Play 2.3 Theoretical background 2.3.1 UTAUT model and UTAUT2 2.3.2 The concept of Perceived Value 10 2.4 Hypotheses development and research model 11 2.4.1 Perceived benefit 11 2.4.2 Perceived sacrifice 13 2.4.3 Perceived Value 14 2.4.4 Social Influence 15 CHAPTER RESEARCH METHODOLOGY 16 3.1 Research process 16 3.2 Proposed measuring items 16 3.3 Sampling and data collection 19 3.4 Data analysis 20 CHAPTER DATA ANALYSIS 23 4.1 Descriptive statistics 23 4.2 Preliminary assessment of the model’s reliability and validity 24 4.2.1 Reliability analysis (Cronbach’s alpha measurement) 24 4.2.2 Exploratory Factor Analysis (EFA) 26 4.3 PLS SEM analysis 30 4.3.1 Measurement model 31 4.3.2 Structural model 32 4.3.3 Hypothesis testing 32 CHAPTER DISCUSSION AND CONCLUSION 35 5.1 Discussion on research findings 35 5.2 Research contribution 39 5.3 Limitation and suggestion for further research 40 REFERENCES 42 APPENDIX DATA ANALYSIS RESULTS 47 APPENDIX QUESTIONNAIRE 53 LIST OF TABLES Table 4.1 List of measuring items 17 Table 4.1 Demographic information of respondents 23 Table 4.2 Summary of Cronbach's alpha value 25 Table 4.3 Initial results of EFA 26 Table 4.4 Initial result of Total variance explained 27 Table 4.5 Initial result of Rotated component matrix 28 Table 4.6 Result of KMO EFA after removing TE3 29 Table 4.7 Result of Rotated component matrix after removing TE3 30 Table 4.8 Result of R square 32 Table 4.9 Result of hypotheses testing 33 Table 4.10 Specific indirect relationship 33 Table 4.11 Result of affecting level (f square) 34 i LIST OF FIGURES Figure 3.1 Proposed conceptual framework 15 Figure 4.1 Research process 16 Figure 4.1 Initial Cronbach's alpha value of PU 25 Figure 4.2 Cronbach' alpha value of PU after removing PU2 26 Figure 4.3 SEM diagram 32 ii CHAPTER INTRODUCTION 1.1 Research background The technological developments have made people access to information easier than ever, hence a movement in media usage A notable example of technological advances is the appearance Over the top (OTT) solution, which obtains the advantage of providing users with a rich and diverse source of content anytime as long as there is appropriate device connected with Internet In addition, OTT also provides many other utility tools with high applicability such as VoIP (Voice over Internet protocol), social network, live broad casting For those benefits, OTT solution is expected to develop even more strongly in the future With two elements of mobility and Internet, which make OTT more superior than traditional cable TV, OTT has quickly become a new wave in the entertainment industry and received enthusiastic reception from users (Shim & Kim, 2018) Regarding OTT solution, one of the most popular services right now is video streaming, with globally famous providers such as Netflix, HBO, Hulu, Amazon Prime or Disney+, which recently launched in 2019 (a new ambition of Walt Disney in video streaming industry) The video streaming market is not limited only by those names, which all come from USA, some countries and other regions around the world have been developing their video streaming platforms There are some notable candidates like Tencent and iQiyi from China, or AcornTv and MUBI from Europe Vietnam, mentioned by World Bank as “one of the most dynamic emerging countries in East Asia region”, does not stand out of this video streaming trend There are several evidences to show that video streaming industry has high potential to bloom in Vietnam Up to now, this industry in Vietnam experiences the competition among several companies, in terms of both global and domestic ones Big foreign players like Netflix, HBO, Amazon Prime, etc have already been available in Vietnam; and the worth mentioning Vietnamese firms are ClipTV, FPT play, VTVcab ON, VTC Now, My K+ NOW, etc… According to a survey by Ho Chi Minh City market research company Q&Me in March 2020, there are most popular video streaming services in Vietnam, in which out of companies originates from Vietnam, Netflix remains the only foreign player in the top (Q&me, 2020) Among platforms, Netflix stayed at the second position, right after FPT play, a streaming service owned by tech giant FPT Corporation The revenue growth of the video streaming industry in Vietnam is quite promising that is predicted to increase up to 113% by 2023 (Statista, 2020a) In addition, regarding the number of Internet users in Vietnam, Datareportal's figures indicate that there were 68.17 million users at the point of January 2020, which increased by 10% as compared to 2019 (Datareportal, 2020) This figure is forecasted to constantly grow, according to an analysis by Statista in 2019, the numbers of people using Internet is predicted to reach 75.7 million people in 2023; Statista also points out Vietnamese spends about hours per day on the internet on average, mainly for entertainment purpose (Statista, 2020b) The potential of video streaming services is even more pronounced than ever amid Covid19 As lockdown is implemented as a solution to deal with the pandemic, people have been called for “social distancing” by just staying home safely One of the things that helps people overcome the boredom during lockdown is to experience online entertainment services The survey of Q&Me showed that social distancing and travel restriction made the rate of using video streaming platforms at home increased to 97%; of which, the figure for feature films and series is 60%; music videos account for 50%; game shows and reality show reality shows account for 48% The director of FPT Play also shared that the number of customers enjoying contents on FPT Play increased times as compared to the period before the lockdown (Moc Lan, 2020) Distributing contents on online platforms not only benefits audiences amid the pandemic, but it also serves as a means to save film producers As the Covid-19 pandemic continued to break out around the world, the movie theater systems in many countries have had to shut down, an action taken by many film studios to overcome this situation is to release movies on digital platform, instead of waiting for theaters to be reopened, which helps film producers avoid loss in profit and reach break-even point if possible (Phan, 2020b) All of the evidences aforementioned show that video streaming services, step by step, are reorienting customer’s behavior, even becoming the future of entertainment industry, hence, the competition in this industry is also becoming fiercer in the world in general, and in Vietnam in particular The expansion of foreign streaming services places great pressure on domestic providers Although currently FPT Play - a domestic streaming service is still the most popular one in Vietnam, this dominant position could not be hold in the future when Netflix, the biggest rival of FPT Play in Vietnam, is staying right behind (Q&me, 2020) Netflix is even more ambitious when they express their desire to produce contents in Vietnam (with Vietnamese native elements), which is similar to the way Netflix has done and achieved in Korea (Korean films and series produced and distributed by Netflix are becoming dominant both in quantity and quality on Netflix, which helps spread out Korean cultures, also known as “Hallyu wave”) (Phan, 2020a) To compete with international giant like Netflix as well as other emerging domestic competitors, FPT play might have to become more creative, more innovative and more personalized to offer audiences the most suitable contents To achieve that, the understanding of user’s psychology is extremely important In the world, there are several studies on streaming services, however, the majority are pieces of research about the online music industry The numbers of papers regarding video streaming are still limited Some pieces of paper can be mentioned such as studies about intention to use Netflix by Melo-Mariano et al., (2017) and Cebeci et al., (2019); or research on video streaming service based on TPB framework (Sardanelli et al., 2019) Whereas in Vietnam, to the author’s best knowledge, video streaming service has only been researched in the master thesis of Le (2019) In which, this author adopts UTAUT2 by Venkatesh et al (2012) to explore factors that impact intention to subscribe to SVOD in general Given the background and situations aforementioned, this research would like to go further by exploring usage intention from the perspective of value maximization, based on the nature of a cost-benefit relationship, and focusing on a specific domestic video streaming service that is FPT Play 1.2 Research purpose The main purpose of this research is to explore the factors influencing intention to use FPT Play, by applying a cost-benefit framework, in combination with UTAUT2 proposed by Venkatesh et al (2012) 1.3 Research questions This study is conducted to answer the following questions: REFERENCES Ajzen, I (1991) Ajzen, I (1991) The theory of planned behavior Organizational Behavior and Human Decision Processes.The theory of planned behavior In Organizational Behavior and Human Decision Processes Amatriain, X (2013) Big & personal: Data and models behind Netflix recommendations Proc of 2nd Int Workshop on Big Data, Streams and Heterogeneous Source Mining: 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(more than answer) - Friends and colleagues Family Social media 53 B RESPONDENT’S OPINION: To what extent you agree/disagree with this opinion? Totally Disagree Neutral Agreed Totally agreed disagree Group A: Perceived usefulness Degree of agreement PU1 Using FPT play could enable me to approach the 5 5 programs that I want to watch more quickly PU2 Using FPT Plays could enhance my appreciation of programs PU3 Using FPT Play could help me find acquire information about programs more easily PU4 FPT Play provides a variety of programs (in terms of genres, contents) PU5 Overall, I find FPT Play is a useful video streaming platform Group B: Perceived enjoyment Degree of agreement PE1 5 Watching programs on FPT Play can make me feel pleasant PE2 Using FPT Play to watch movies, TV shows brings me excitement PE3 Overall, I find FPT Play is an interesting video streaming platfor Group C: Technicality Degree of agreement TE1 FPT Play platform can be connected instantly and stably TE2 FPT Play platform responds quickly 54 TE3 The system of FPT Play is reliable without any 5 concerns about privacy or virus TE4 My interaction with FPT Play is clear and understandable TE5 In general, I find it is not easy to use FPT Play to watch programs Group D: Perceived fee Degree of agreement PF1 5 (Not mentioning free programs), the price that I have to pay for premium programs on FPT Play is reasonable PF2 (Not mentioning free programs), the price for premium programs on FPT Play is in line with my expectation PF3 Overall, (Not mentioning free programs), I am satisfied with the price I have to pay if I want to watch premium programs on FPT Play Group E: Social Influence Degree of agreement SI1 5 People who are important to me think that I should use FPT Play to watch programs SI2 People who influence my behavior think that I should use FPT play to watch programs SI3 People whose opinions I value prefer that I use FPT Play to watch programs Group F: Perceived Value Degree of agreement PV1 (Apart from free programs), compared to the fee I have 5 to pay to watch premium programs, the use of FPT Play offers me good value PV2 Compared to the time I need to spend on, I find the use of FPT Play is worthwhile to me PV3 Compared to the effort I need to put in, I find the use of FPT Play is beneficial to me 55 Group G: Usage intention Degree of agreement UI1 5 The likelihood that I would create my account on FPT Play to watch programs is high UI2 My willingness to create my account on FPT Play to watch programs is high UI3 In the near future, I plan to create my account on FPT Play to watch programs 56