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Willingness to pay for paid channels of digital TV: an Empirical Analysis
Unformatted Document Text:  WILLINGNESS TO PAY FOR PAID CHANNELS 13 Table 2 (see Appendix). From the data provided in Table 2, we can conclude the first content paid by 5 users is News and Entertainment programs because of wishing to watch more comprehensive news programs and more variety shows. The second content paid by 3 users is sports, because of their own personal interest. The other content includes music, movies, animated cartoon each, the reason mainly related to their own living conditions, such as having children and loving music. The mean of the amount for paid channels each month is 28.5 RMB after deducting four missing values. At present the amount users pay for paid channels is probably around 30 RMB each month. 2. Future payment liability and reason for payment by unpaid channel users Among 184 unpaid users, except 38 answers “it's hard to say” would not be analyzed, other 146 users’ future payment liability and reason is analyzed by content analysis. This data is summarized in Table 3 (see Appendix). Further to classify the answer of the future impossible payment which involves the “ Very unlikely ” and “ Somewhat unlikely ” answers as the following aspects: 1、The free TV channel amount is too many at present; 2、Paid channel contents have nothing special; 3、Price and income factors; 4、The substitution of other media;5、Other reasons. While to classify the answer of the future impossible payment which involves the "Somewhat likely" and "Very likely" answers as the following aspects:1、Willing to pay if paid channel with rich content; 2、Willing to pay if paid channel could provide distinctive programs; 3 、Willing to pay in order to watch more programs channel; 4、Other reasons. Therefore, willingness to pay for future payment depends on whether the content of paid channels would exceed free channels.

Authors: Zeng, Fan-Bin.
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WILLINGNESS TO PAY FOR PAID CHANNELS                                                 13 
Table 2 (see Appendix).
From the data provided in Table 2, we can conclude the first content paid by 5 users is 
News and Entertainment programs because of wishing to watch more comprehensive news 
programs and more variety shows. The second content paid by 3 users is sports, because of 
their own personal interest. The other content includes music, movies, animated cartoon each, 
the reason mainly related to their own living conditions, such as having children and loving 
music. The mean of the amount for paid channels each month is 28.5 RMB after deducting 
four missing values. At present the amount users pay for paid channels is probably around 30 
RMB each month.
2. Future payment liability and reason for payment by unpaid channel users
Among 184 unpaid users, except 38 answers “it's hard to say” would not be analyzed, 
other 146 users’ future payment liability and reason is analyzed by content analysis. This data 
is summarized in Table 3 (see Appendix).
Further to classify the answer of the future impossible payment which involves the 
Very 
unlikely
 and 
Somewhat unlikely
” 
answers as the following aspects: 1、The free TV channel 
amount is too many at present; 2、Paid channel contents have nothing special; 3、Price and 
income factors; 4、The substitution of other media;5、Other reasons. While to classify the 
answer of the future impossible payment which involves the "Somewhat likely" and "Very 
likely" answers as the following aspects:1、Willing to pay if paid channel with rich content; 
2、Willing to pay if paid channel could provide distinctive programs; 3 、Willing to pay in 
order to watch more programs channel; 4、Other reasons. Therefore, willingness to pay for 
future payment depends on whether the content of paid channels would exceed free channels. 


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