Understanding IPTV churning behaviors: focus on users in South Korea

Myung-Joong Kim,Sun-Young Park,Juil Kim

doi:10.1108/apjie-08-2017-026

Abstract

PurposeThis study aims to investigate customers’ churning out of Internet Protocol Television (IPTV) service, one of the most prevalent forms of IT convergence.Design/methodology/approachBased on the review of current literature, a research model is introduced to depict the effects of select independent variables on customer churning behavior. First of all, the two groups are compared in terms of predictor variables, including switching barriers, voice of customer (VOC), membership period and degree of contents usage. Then, a curvilinear regression was applied to understand the association relationship between the level of IPTV contents usage and variables of switching barriers, VOC and membership period. Third, a logit regression was performed to predict customer churning through the variables of switching barriers, VOC, membership period and level of IPTV contents usage.FindingsThrough the empirical analysis, this study analyzed the factors affecting customer churning behavior of IPTV service providers based on switching barriers, VOC and contents usage.Originality/valueAlthough several studies on IPTV have been undertaken globally, they have largely depended on self-reporting surveys to examine dynamics between antecedent variables and IPTV performance in terms of customer satisfaction, usage intension and customer retention. This empirical study is performed to understand influential factors of IPTV service defection through the weblog analysis of 3,906 service users, who represented both service defectors and non-defectors during a specific month.

Highlights

The results indicate that interactivity and personalization capability of Internet Protocol Television (IPTV) grow customers’ perceived control and satisfaction their synergy effects are stronger than their individual influences combined Surveys on both service provider and subscriber groups revealed discrepancies in 10 out of 24 service quality dimensions and they agreed on only 4 service quality dimensions, highlighting importance in reducing the perception gap between the two groups quality of service (QoS), channel zapping time and ability to repair packets were all significant in IPTV customer satisfaction Product experience and sophistication of technology are important variables in the diffusion of IPTV innovation
There is a clear indication that customers who behaviors opt for service bundling which combines IPTV with other services (e.g. voice over IP (VoIP) and mobile cellular phone communications) had a much lower chance of abandoning it than those who subscribe it on a single-service basis
The percentage of the IPTV defection rate was consistently lower than the non-defection rate among the age groups of 40s or younger, but this reverses in the age group of 50s and 60s

Summary

Introduction

It is taking place in many different forms, including voice and data network merger, voice over IP (VoIP) and IP-enabled television (or IPTV). The internet and its technology are in the epicenter of the accelerating digital convergence. The disappearing boundaries between the traditional mass media and network service IPTV churning industries, especially in the form of IPTV (Internet Protocol Television), are probably one of the most striking examples of the rapid development of digital convergence. Digital convergence poses challenges and opportunities to businesses, as it disrupts established paradigms. As it sets itself apart from the traditional service paradigm in many different ways, digital convergence warrants dedicated research

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