A socio-technical analysis of factors affecting the adoption of smart TV in Korea

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Date: Aug. 2016
Publisher: Elsevier B.V.
Document Type: Report
Length: 358 words

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Abstract :

To access, purchase, authenticate, or subscribe to the full-text of this article, please visit this link: http://dx.doi.org/10.1016/j.chb.2016.02.099 Byline: Eun Yu [eunyu1031@kaist.ac.kr] (a), Ahreum Hong [arhong@khu.ac.kr] (b,*), Junseok Hwang [junhwang@snu.ac.kr] (c) Keywords Smart TV; Socio-technical analysis; Bundling; N-screen; Technology adoption; Korean media panel data Highlights * A socio-technical approach is implemented on this smart TV study. * We provided empirical evidence of the lock-in effect of IPTV bundling on the adoption of smart TVs. * The adoption of smart TVs does not encourage the use of N-screen service more than non-smart TVs. Abstract Smart TV has been highlighted as a new platform of broadcasting, powered for the last five years by its own application store as well as by internet-based contents. However, recently, smart TV's performance in the pay-TV market has been below expectations. In the socio-technical view, this paper investigates three aspects surrounding smart TV: bundling as a market competition strategy; services using technological features represented by N-screen; and consumer attributes, including personal innovativeness and demographics. The results show that the bundles with IPTV have a lock-in effect, while other pay-TV services do not, indicating that bundling by communications service providers is a more effective strategy to keep market share away from new entrants. Policy makers only consider competition among incumbents, neglecting the entrance of new service providers, like over-the-top service providers. Therefore, bundling should be evaluated in terms of an entry barrier. Smart TV doesn't work as a platform because the adoption of smart TV has no influence on the watching of N-screen broadcasting services on TV. There are implications that the new technology alone cannot encourage lean-forward activity on TV. Managers should focus on what consumers expect from 'smartness', and develop contents for the smart TV as a home appliance. Author Affiliation: (a) Department of Management Engineering, Korea Advanced Institute of Science and Technology, 85, Hoegi-ro, Dongdaemun-gu, Seoul, Republic of Korea (b) Graduate School of Technology Management, Kyunghee University, 1732 Dukyoungdae-ro, Yong-In, Republic of Korea (c) College of Engineering, Seoul National University, Kwanak-ro 599, Kwanak-gu, Seoul, Republic of Korea * Corresponding author. Article History: Received 23 July 2015; Revised 18 February 2016; Accepted 21 February 2016

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Gale Document Number: GALE|A517769808