TELEVISION VERSUS THE INTERNET: A COMPARATIVE ANALYSIS OF TRADITIONAL AND NEW VIDEO PLATFORMS IN SUBSTITUTABILITY, PERCEPTIONS, AND DISPLACEMENT EFFECTS By JIYOUNG CHA A DISSERTATION PRESENTED TO THE GRADUATE SCHOOL OF THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY UNIVERSITY OF FLORIDA 2009 1 © 2009 Jiyoung Cha 2 To my parents, who walked with me every step of this journey 3 ACKNOWLEDGMENTS Whenever I had a difficult moment during my doctoral studies, I used to imagine this moment when I would write down my acknowledgments. At last, it is not my imagination anymore. I am exhilarated and grateful for this moment. In retrospect, I had a lot of joyful and blissful times during my days as a doctoral student. On the flip side, I had heartbreaking and challenging moments as well. A lot of people around me shared my joy and concerns. They made this dissertation complete. I am not sure how well words can convey how grateful I feel to all of them, but I would like to try. Very special thanks to my advisor and the dissertation chair, Dr. Sylvia Chan-Olmsted. I am very fortunate to have her as my advisor, dissertation chair, and mentor. She admitted me to the program, and supported, encouraged, and mentored me above and beyond my academic life. I remember when she treated me to lunch after I’d just arrived to Gainesville about 4 years ago. I also remember how she talked about her life and research at one of the gatherings she brought me to in the first year of my doctoral studies. She often challenged me to come up with more solid ideas and theoretical rationales for my research. I will never forget her dedicated and thorough guidance regarding my research, teaching, and career throughout my doctoral studies. Thank you so much, Dr. Chan-Olmsted, for giving me so many wonderful opportunities to learn and explore more about research, teaching, and life. I also want to express my special and sincere gratitude to Dr. David Ostroff. Despite his busy schedule as a department chair, he allowed me to share my worries about my dissertation, teaching, and career. He encouraged me to think about research problems from various angles and provided me with valuable input. Whenever I left his office after talking with him, I had a much clearer idea as to what to do; I gained courage. I definitely benefited from his support, advice, and encouragement. 4 Dr. Barton Weitz and Dr. Marilyn Roberts deserve special words of thanks. Dr. Weitz made it possible for me to minor in marketing during my doctoral studies. He inspired me to advance my knowledge in marketing. His thoughtful guidance and warm heart relieved my tension. His openness and generosity also allowed me to ask him research questions that I had been initially afraid of asking due to my lack of knowledge. I would also like to thank Dr. Roberts for her support and willingness to spare her time with me under difficult circumstances. Her encouragement and kindness helped me get through all of this. I also owe my special appreciation to Dr. Fiona Chew, who is my life-long mentor. Thanks to her, I decided to advance my studies to the doctoral level when I was a master’s student. Without her strong support, I might not have pursued my doctoral-level studies. She shared my triumphs and concerns throughout my graduate studies. Her warm-hearted personality dispelled my fear of talking with professors. She encouraged and supported me endlessly over the past years. I look forward to our reunion at one of the conferences and hearing her happy laughter again. I also want to express my sincere gratitude to several other faculty members. I thank Dr. Madelyn Lockhart and other faculty members at The Association for Academic Women for their financial and emotional support of my dissertation. I also thank Dr. Ronald Ward, Dr. Carlos Jauregui, and Dr. James Algina, who taught me econometrics and structural equation modeling. They welcomed my countless questions about statistics and clarified them. I am truly amazed at how dedicated they are to their students. I also want to thank Dr. Johanna Cleary, Dr. Linda Kaid, Dr. Hyojin Kim, Dr. Amy Coffey, and Professor Tim Sorel for their support and detailed guidance. They helped me realize what I could do during my doctoral studies. I also owe a note of special thanks to Dr. Haekyung Han, Dr. Changseop Choi, Director Jieho Lee, and Director 5 Jiyeon Nam. They made it possible for me to resume my graduate studies in media, so different a subject than my undergraduate major. During my stay in the United States, many of my friends in Korea continued to stand by me. I in particular single out Haejin, Joyoung, Juyoung, Jiyoon, Jungeun, and Jungran. I also met a wonderful circle of friends during my graduate studies. I was very fortunate to meet Fei, Jasmine, Mic, Cari, Brad, Jieun, Becky, Chunsik, Dave, Seth, Jun, Mijung, Yeuseung, Miao, Hyunjung, Tayo, Jinseong, Jiyoung, Jamie, Jaejin, Kyungseop, Khelia, Eunsoo, Wanseop, Jungmin, Hanna, Eunhwa, and Jae. Thank you very much for all the good memories and for responding to my SOS. I also thank Jody, Kim, Diana, and Ms. Hunter for their kindness and support. I would also like to express my sincere and very special thanks to Seungyeon, who shared every single joy and sorrow with me over the past years. Seungyeon, without your consistent support and encouragement, I would have not able to make it. I would also like thank Dole for listening to me and always suggesting smart solutions. Dole, thanks to your strong urging, I was able to refocus on my dissertation. My very special thanks also go to AJ, who has stood by me no matter where I am and what I go through. AJ, thank you very much for making me laugh louder, dancing crazily with me, and helping me sustain my strength. Last, but not least, I express my tremendous gratitude to my family. My doctoral studies allowed me to redefine what my family means to me in my life. My brother has been one of my biggest supporters throughout my whole life. My brother, I will always be one of your biggest supporters. I also owe my very special thanks to my parents, who made me and made this happen. Their love, support, patience, and trust helped me get through all of this and to grow as a 6 human being. Their love truly made me stand up eight times or more — even though I sometimes fell down seven times. Dear family members and AJ, we finally did it! 7 TABLE OF CONTENTS page ACKNOWLEDGMENTS.................................................................................................................... 4 LIST OF TABLES.............................................................................................................................. 11 LIST OF FIGURES ............................................................................................................................ 13 ABSTRACT ........................................................................................................................................ 14 CHAPTER 1 INTRODUCTION....................................................................................................................... 16 Environmental Change of the Television Industry ................................................................... 16 Purpose of the Study ................................................................................................................... 20 2 THEORETICAL FRAMEWORK ............................................................................................. 23 Integration of Different Theories ............................................................................................... 23 Theory of Planned Behavior ............................................................................................... 23 Technology Acceptance Model and Innovation Diffusion Theory .................................. 25 A Comparative Study .................................................................................................................. 27 3 LITERATURE REVIEW AND RESEARCH QUESTIONS .................................................. 32 Perceived Characteristics of Online Video Platforms .............................................................. 32 Perceived Substitutability .................................................................................................... 32 Relative Advantage.............................................................................................................. 37 Content-related attributes............................................................................................. 39 Technology-related attributes ...................................................................................... 41 Cost-related attributes .......................................................................................................... 42 Perceived Ease of Use ......................................................................................................... 47 Compatibility ....................................................................................................................... 48 Consumer Characteristics ........................................................................................................... 49 Online Flow Experience ...................................................................................................... 49 Viewing Orientation ............................................................................................................ 51