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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 2 Abstract: Willingness to pay for paid channels of digital TV includes four aspects: response to paid channels about status and reason for payment by paid channel users; future payment liability and reason for payment by unpaid channel users; the highest price the users are willing to pay; the users' attitude toward paid channels to switch to advertisement in order to reduce the price. Based on a Computer Assisted Telephone Interviewing household s in Guangzhou, China (N=308), this study finds that willingness to pay for paid channels by users is low. The key reason is that the paid channels of digital TV is nothing special and the free channels of digital TV are too many and diverse. This study also reveals that the highest price which the users are willing to pay is low, and the users don’t support advertising in paid channel even if it could reduce the cost. Results of the hierarchical regression analysis also reveals that willingness to pay for paid channels is relate d with the TV use variable, but not related with income variable, which means that the media goods of paid channels are abnormal Goods, in other words, the number of people willing to pay would not increase even if their income levels are higher. Based on these results, this study states briefly that if the willingness to pay for paid channels is raised, the key point is to improve the quality and reduce the price of paid channels. Key word s : digital TV, paid channel, Willingness to pay, income

Authors: Zeng, Fan-Bin.
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WILLINGNESS TO PAY FOR PAID CHANNELS                                                 2 
Willingness to pay for paid channels of digital TV includes four aspects: response to paid 
channels about status and reason for payment
by paid channel users; future payment liability 
and reason for payment by unpaid channel users; the highest price the users are willing to 
pay; the users' attitude toward paid channels to switch to advertisement in order to reduce the 
price. Based on a Computer Assisted Telephone Interviewing
 in Guangzhou, 
China (N=308), this study finds that willingness to pay for paid channels by users is low. The 
key reason is that the paid channels of digital TV is nothing special
and the free channels of 
digital TV are too many and diverse. This study also reveals that the highest price which the 
users are willing to pay is low, and the users don’t support advertising in paid channel even if 
it could reduce the cost. Results of the hierarchical regression analysis also reveals that 
willingness to pay for paid channels is
 with the TV use variable, but not related with 
income variable, which means that the media goods of paid channels are abnormal Goods, in 
other words, the number of people willing to pay would not increase even if their income 
levels are higher. Based on these results, this study states briefly that if the willingness to pay 
for paid channels is raised, the key point is to improve the quality and reduce the price of paid 
Key word
: digital TV, paid channel, Willingness to pay, income

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