QR Code and Chinese Satellite Competition: Fad or Useful Tool? A Thesis Submitted to the Faculty of Drexel University by Wanyu Wang in partial fulfillment of the requirements for the degree of Master of Science August 2015 © Copyright 2012 Yifeng Xie. All Rights Reserved. ii ACKNOWLEDGMENT This thesis would not have been possible without the great guidance and support of my principal advisor professor Terry Maher and professor Albert Tedesco. The nice environment they provided and their patience from the start to the final made the whole process easier and interesting. As an international student, I would also like to acknowledge the Writing Center of Drexel University for their help to improve my writing skills. I would like to thank all my classmates in Westphal College of Media Arts & Design for their encouragement and friendship during the two years of study. Thanks to Rashon Clark for helping me edit the thesis. Finally, I am grateful to my parents for their trust and love. iii Table of Contents CHAPTER1：INTRODUCTION ......................................................................... 1 Introduction ......................................................................................................................... 1 Background and need .......................................................................................................... 3 Statement Of the Problem ................................................................................................... 7 Purpose of the study ............................................................................................................ 9 Research Questions ........................................................................................................... 10 Significance to the field .................................................................................................... 10 Limitations and future study ............................................................................................. 10 CHAPTER2：LITERATURE REVIEW ............................................................ 12 Introduction ....................................................................................................................... 12 Body of the Review .......................................................................................................... 12 CHAPTER3：METHODOLOGY ...................................................................... 27 Introduction ....................................................................................................................... 27 Setting ............................................................................................................................... 28 Sample............................................................................................................................... 28 Measurement Instrument .................................................................................................. 29 CHAPTER4：RESULTS .................................................................................... 31 CHAPTER5：DISCUSSION .............................................................................. 35 Introduction ....................................................................................................................... 35 Discussion ......................................................................................................................... 35 Limitations ........................................................................................................................ 55 Recommendations for Future Research ............................................................................ 55 Conclusion ........................................................................................................................ 56 REFERENCE ....................................................................................................... 58 DEFINITION ....................................................................................................... 63 1 CHAPTER1：INTRODUCTION Introduction The traditional television industry is facing challenges from new forms of media, especially mobile devices. In China, with societal changes and the development of new technology, TV audiences no longer solely use television to watch TV programs. Consequently, traditional Chinese satellite television is beginning to face the challenge of maintaining their television ratings. In the United States, traditional broadcast television faces many challenges. This was especially true for the first decade of the twenty-first century, when the “Big Four” networks had to adjust their programming, scheduling, advertising, promotion, and distribution strategies in relation to the evolution of media technologies and viewer practices (Gillian, 2011). In China, online video websites and companies have developed and expanded rapidly. One example is iQIYI, mainland China’s second most popular online video website in 2014 according to number of video hours played. In 2010, it launched its web platform as well as an application for mobile devices, with total revenue reaching 710 million Yuan (the conversion to USD is around 115 million US dollars). By then, most parts of its revenue stream were advertising and program sponsorship (China Mobile Limited. 2014). Within one year’s development, revenue reached 2.4 billion Yuan (388 million USD) (Jinxi, 2014). By the end of 2014, iQIYI and PPS (a subsidiary online video website of iQIYI) had a total of 308.17 million mobile viewers, who watched content for a total of 1.176 billion hours on all platforms. Waters (2012) has noted three important “screens” in the current media industry: the television screen, the computer monitor, and the mobile device screen. As mobile devices become increasingly commonplace on the street as well as in the workplace, the traditional 2 television industry faces severe challenges from the online video industry. The television industry is currently experiencing integration with mobile media technology (Breyer, Decker, Kim, 2009). Audiences are no longer the same audiences of ten years ago -- coach potatoes with remote controls in their hands. With rapid developments in science and technology, smartphones, used as the second screen in people’s lives, are threatening the television industry. Under these circumstances, the television industry is trying its best to maintain its leading position. Additionally, television managers are trying to seize every part of the Long Tail of television. Mobile devices represent a rewarding avenue for advertisers as well as consumers. For television account executives, mobile devices offer another way to reach potential audiences with interactive, persuasive programs. For audiences, mobile devices can empower viewers by giving them greater access to on-demand programming in a more convenient and cheaper environment. This potential is even more promising as audiences adopt technologically more advanced mobile phones, such as smartphones and other mobile devices with large screens. Faced with the challenge from mobile devices, and with no way to block its development, traditional Chinese satellite television should find out a proper approach for connecting these two mediums (People.cn, 2015). This paper will clarify the competition and corporations involved with these two industries by exploring a specific technology’s application. Under these circumstances, a tiny square, the QR code, came into the view of Chinese television managers. QR codes were used as a bridge in the Chinese television industry to connect television audiences with programming. This thesis will be completed through the use of the Uses and Gratification Theory (UGT) as a framework. It will focus on three audience orientations – trust, 3 involvement, and market magnetism – to explore how Chinese satellite TV can use QR Codes to attract a larger audience. This paper will also predict whether the use of this technology in the television industry is a passing fad or a permanent development. Background and need What is QR Code? The QR code (abbreviated from Quick Response Code) is essentially a 2D barcode that was originally designed to track auto parts in Japan.(Naumann, 2011). They are used to take a piece of information from transitory media and relay it to a person’s cell phone or mobile device. Very quickly, the use of QR codes spread around the world because of their speed and accuracy. Once it is in your cell phone, it may give you details about a business or item (such as a t-shirt worn by someone), show you the URL which you can click to see a trailer for a movie, or it may even give you a coupon which you can use at a local outlet .(Naumann, 2011). Below is a QR Code with my information. People can scan it with a QR reader in their mobile devices, and the result will be a display of my name and email address. 4 Figure 1. A QR Code with my information It is very easy to generate a QR Code. 1．Select a QR code generator. When you search “QR Code generators” online, you will find a variety of generators out there, such as Kaywa, GOQR.me, Visualead, and QR Stuff. 2．Design and link it. After you chose a generator, you should select what type of content you want your QR code to send to consumers. Then type or insert the content in the box. In the “Scanme” QR Code generator, for example, I inserted my email information (see Figure 2). 3．The last step is to examine the preview of the QR Code, customize