An Empirical Study of User Acceptance of Fee-Based Online Content

Abstract

Despite the fee-based online content's popularity and potential for extensive growth, its service provision as a business model is struggling to establish itself. This study is intended to identify the factors that influence customers' adoption of the fee-based online content services. Based on theories and findings from various fields, this study attempts to answer the following questions: (1) Does cost really matter in adopting the fee-based online content services?; (2) What are salient factors that explain customer adoption of online content services provision?; and (3) How are the characteristics between user groups different according to the type of online content? This study surveyed Internet users in Korea which has the highest Internet penetration rate in the world. The results of this empirical study indicate that the existence of an alternative free online content service and ease of use do not significantly affect customers' adoption of fee-based online content. Thus, online content providers need to segment buyers according to their needs and preferences, and execute their focused market strategy. Finally this paper provides a detailed account of how customers perceive and accept fee-based online content services.