Drivers of Customers Advocacy in Support of Subscription-based Digital Entertainment Services (NETFLIX)

Abstract

Subscription business models are increasingly gaining attention in recent year, especially entertainment services such as music subscription, streaming TV/movies and video games. One of the service platform that comes to mind is Netflix, a subscription-based video streaming service. Video on demand streaming service currently competing each other quite aggresively where these provider competing by providing different series that exclusively only available on their services or with different versatile pricing package in hope to attract new subscribers while retaining it’s existing subscribers. This call for new strategy for Netflix to maintain it’s position in competition. This research examines the relationship between customer empowerment values and customer advocacy in relation to a digital platform subscription-based consumption. A quantitative approach was employed by conducting a survey of 110 user of Netflix in Indonesia. Data collected was subsequently analyzed using partial least squares structural equation modeling (PLS-SEM) in order to test the formulated hypothesis. The research resulted in an understanding that value-for-choice, value-for-knowledge and value-for-involvement are significant predictors of customer advocacy of the platform. The findings suggest that Customer advocacy is primarily influenced by the level of product choice and convenience also reliable information and privacy security also constitute important elements for providers to deliver in order to promote advocacy behavior from customers using the platform.