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Relationship between the use of PPV on digital TV and TV consumption in a household and its equipment
Unformatted Document Text:  4 package “Canal Satélite Digital” came from football matches (Noticias de la Comunicación, 1999). In this study we thoroughly investigate the field of PPV which has still not received sufficient academic analysis, although there have been many studies conducted by communication groups about the development of Video on Demand associated with other integral telecommunication services (entertainment, information and transaction services). Some of the most significant of these studies were those carried out by Time Warner in Orlando (Florida), with the commercial name of Full Service Network, and those conducted in different American cities by Bell Atlantic (Pyungho Kim, 1999). From a more academic perspective, Ling, Nilse and Granhaug (1999) carried out a study on VOD in Oslo (Norway), under the name of “Videotorg”. This study, which uses a qualitative methodology, concentrates on the “domestication” of VOD, i.e. the way in which it becomes integrated in the home. This investigation studied two processes; firstly, the physical integration of the set top box and the remote control in the home, and secondly, the metaphoric integration of the new system in the mind of the user. The cited study found that VOD has an effect on family-life which is similar to that provoked by the arrival of a colour television or VCR in the home. Those who participated in the study looked upon “Videotorg” as a type of sophisticated VCR, and whilst its use had an influence on the hire of video films, it had no effect whatsoever on the use of the Internet at home. Using the methodology of use and gratification and the niche theory, Albarran and Dimmick analysed the competition, which exists among the different video industries: general TV, basic cable TV, VCR and premium channels and PPV. According to the niche theory, there was strong competition between the premium channels and PPV on cable television. On the other hand, PPV was not seen as a media form capable of competing with either video or basic cable TV, in terms of the gratification with which it could provide the consumer (Albarran, Dimmnick, 1993, 50). However, the results of this study which refer to PPV must be viewed with a certain amount of reserve at the present time, due to both the technological and managerial developments which have taken place in the field of PPV over the last years (the introduction of NVOD, a reduction in the periods of time between the release of films on video and the opening of the exhibition windows and the lowering of prices, among many other things). Before the Internet became popular, Reagan (1987) studied differences in consumption between those who adopted the new technologies (PC, CD, VCR) and those who did not adopt them. Coffey and Stipp (1997) cite three reasons for the reduction in TV viewing. Firstly, leisure time is limited and an increased use of the PC and the Internet necessarily removes time from other activities. Secondly, interactive activities, such as the use of the Internet, are more attractive and, finally, new generations have been brought up with the Internet and therefore tend to use it more. Ferguson and Pearse (2000) maintain that WWW provides an alternative to TV and therefore could compete with the later for audience. Moreover, Perse and Dunn (1998) observed that PC users watch less TV (general and cable) than those who do not own computers. The most important research questions that we have tried to answer are as follows: • Is there a relationship between the consumption of general TV and contracting PPV services? Are the biggest consumers of TV also the biggest consumers of PPV?

Authors: Garitaonandia, Carmelo., Fernandez, Emilio. and Oleaga, Jose.
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4
package “Canal Satélite Digital” came from football matches (Noticias de la
Comunicación, 1999).
In this study we thoroughly investigate the field of PPV which has still not received
sufficient academic analysis, although there have been many studies conducted by
communication groups about the development of Video on Demand associated with other
integral telecommunication services (entertainment, information and transaction services).
Some of the most significant of these studies were those carried out by Time Warner in
Orlando (Florida), with the commercial name of Full Service Network, and those conducted
in different American cities by Bell Atlantic (Pyungho Kim, 1999). From a more academic
perspective, Ling, Nilse and Granhaug (1999) carried out a study on VOD in Oslo
(Norway), under the name of “Videotorg”. This study, which uses a qualitative
methodology, concentrates on the “domestication” of VOD, i.e. the way in which it
becomes integrated in the home. This investigation studied two processes; firstly, the
physical integration of the set top box and the remote control in the home, and secondly, the
metaphoric integration of the new system in the mind of the user. The cited study found
that VOD has an effect on family-life which is similar to that provoked by the arrival of a
colour television or VCR in the home. Those who participated in the study looked upon
“Videotorg” as a type of sophisticated VCR, and whilst its use had an influence on the hire
of video films, it had no effect whatsoever on the use of the Internet at home.
Using the methodology of use and gratification and the niche theory, Albarran and
Dimmick analysed the competition, which exists among the different video industries:
general TV, basic cable TV, VCR and premium channels and PPV. According to the niche
theory, there was strong competition between the premium channels and PPV on cable
television. On the other hand, PPV was not seen as a media form capable of competing
with either video or basic cable TV, in terms of the gratification with which it could
provide the consumer (Albarran, Dimmnick, 1993, 50). However, the results of this study
which refer to PPV must be viewed with a certain amount of reserve at the present time,
due to both the technological and managerial developments which have taken place in the
field of PPV over the last years (the introduction of NVOD, a reduction in the periods of
time between the release of films on video and the opening of the exhibition windows and
the lowering of prices, among many other things).
Before the Internet became popular, Reagan (1987) studied differences in
consumption between those who adopted the new technologies (PC, CD, VCR) and those
who did not adopt them. Coffey and Stipp (1997) cite three reasons for the reduction in TV
viewing. Firstly, leisure time is limited and an increased use of the PC and the Internet
necessarily removes time from other activities. Secondly, interactive activities, such as the
use of the Internet, are more attractive and, finally, new generations have been brought up
with the Internet and therefore tend to use it more. Ferguson and Pearse (2000) maintain
that WWW provides an alternative to TV and therefore could compete with the later for
audience. Moreover, Perse and Dunn (1998) observed that PC users watch less TV (general
and cable) than those who do not own computers.
The most important research questions that we have tried to answer are as follows:
Is there a relationship between the consumption of general TV and
contracting PPV services? Are the biggest consumers of TV also the biggest
consumers of PPV?


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