What impacts consumers’ attitude towards streaming: digital piracy vs paid subscriptions

Key factors that influence viewers’ preference. The survey of digital piracy factors in the field of series. The factors impacting the aspiration to watch series whether through streaming services, or illegal sources of pirated content in Russia.

Рубрика Менеджмент и трудовые отношения
Вид дипломная работа
Язык английский
Дата добавления 10.12.2019
Размер файла 1,9 M

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Some researchers have tried to conduct a study on digital piracy as a whole, including all areas like music, software, movie industries. Irena Vida with co-authors [Vida et al., 2012] offered to examine consumer perceptions of expected personal consequences as drivers of an individual's justifications for illicit behaviour regarding digital goods and behavioural intention to engage in such activities in the context of downloading, sharing and using digital products across five European Union countries. Moreover, they applied neutralization theory to investigate the changed stages of piracy intent by the temporal effects of rationalization behaviour. Data collection for the study was carried out via mail-survey and online-survey. Researchers obtained that the perceived benefits of digital piracy are positively related with the consumers' rationalization of piracy behaviour. Moreover, the findings also show that, as the perceived technical risk increased, the consumers' intent to digitally pirate decreased. In addition, as the perceived benefits increased, so did the intent to digitally pirate in the future. It was also found that increasing the degree of rationalization directly affects the future intentions of respondents to engage in digital piracy. These results suggested that the strongest driver of one's piracy intent is his/her perception of benefits, closely followed by the use of rationalization techniques. From an academic perspective, the most important result obtained is that, from the point of view of rationalization, the perceived benefits are most influential on the likelihood of future piracy. Whereas, perceived technical risk reduces this probability, since it affects cognitive processes less [Vida et al., 2012].

In another study, the authors' goal was also to identify factors pushing consumers into illegal downloads of digital content, and also to identify the main differences between illegal actions against tangible and intangible things, based on an analysis of the scientific literature. The majority of researches in academic literature were conducted through questionnaire surveys. The authors have identified the most common factors of downloading unauthorised content. The main reason is the contrast between personal and corporate when for consumers there is the illusion that the action of digital piracy is victimless and therefore it is not regarded as an ethical issue. Additionally, moral obligation also had a large influence on the intention to illegal distribution and consumption of digital content, so the piracy is not perceived to be an ethical concern. It was also found that situational, demographic factors dictated people's propensity to make use of illegal software. Authors discovered in lots of studies that perceived excessive pricing is a factor in the decision to act illegally. Likewise, the anonymity afforded by the internet facilitates individual digital piracy behaviour [Williams et al., 2010].

Lots of articles about digital piracy used psychological models. Previous theoretical guidance and preliminary results of a meta-analysis prompted a group of researchers to check how past experience with the illegal distribution of digital content could have an impact on future intentions for illegal downloads. They predicted to discover a connection between the respondent's age and correspondingly large experience in the field of digital piracy. Also, it was expected that behaviour will depend on intention, and modelling situations from the past will indirectly influence intention. The questionnaire had 150 questions. Using Likert-type scales researchers measured attitude, perceived behavioural control, subjective Norms and intention. As a result, subjective norms and perceived behavioural control do not predict intention. In addition, the intention of the consumer affects how he will act in the future. The main results of the study are the existing negative relationship between past experience and the age of the respondent. Further, the researchers noted that any limitations that the respondent encountered in his past experience affect the intent. Their results show that past experience, based on a theory explaining human behaviour, implies an increased ability to predict future events in the future [Fleming et al., 2017].

Many researchers wondered about the psychological factors that allow people to break the moral rules associated more often with intangible objects than with material ones. The study accommodated for these potential factors by holding constant the cost of production, the ease of access and ensuring the resource is equally exhaustible across tangible and intangible theft. They decided to check the fact that people more prone to take without permission and rights intangible items compared with material things and to verify the opinion that tangible and intangible items are represented differently in the brain. Additionally, researchers were interested in identifying why respondents are readier to practice the piracy of intangible versus tangible items.

To do this, the first study used an online questionnaire to identify whether people are more likely to steal something that is intangible in nature. As a result of the analysis, researchers obtained that participants were more willing to steal intangible items across all conditions, regardless if the company was big or small, the items were cheap or expensive, or the cost of the item for the company was the same. Finally, they discovered a significant correlation between current piracy behaviour and future behaviour, whereby the more people were currently involved the more likely they were to practice digital piracy in the future. They confirmed anecdotal evidence that people are more prone to illegally use intangible objects. Also, the research showed that participants felt guiltier about stealing tangible compared with intangible goods. Thinking about stealing tangible items led to an increase in left lateral activation of brain while this was not the case for intangible items [Eres et al., 2016].

In this paper, there are also some researches about brand loyalty, because many people believe that consumers are solely related to one company, although its competitors have similar products, services and characteristics. Interesting is the fact of how brand loyalty depends on its own individuality and the special unique features of its consumers. The following article is devoted to the study of this issue. The brand itself is based on communication channels with the consumer, on the work on the image and on the presented products, namely their categories and distribution channels. This information proves the fact that there is an influence of the brand users' image on the brand, if its personality contains demographic characteristics. That is why such a brand always stands out in the market, which becomes crucial during increasing competition and replacing new empty niches in which it is difficult to retain existing and find new customers. Using Regression and Pearson's correlation analyses the major findings of this study were obtained. Researcher detected that clients with extroversion trait of character more excited in the personality of a brand. Additionally, he discovered the existence of a positive relationship between excitement brand personality and agreeableness personality trait, and also between sincerity competence brand personality and brand personality. Also, in this paper he established that precisely pleasant, open people provided brand identity more loyal to the brand [Lin, 2010].

Summarizing all previous studies on the analysis of digital piracy in various fields: music, books, software and games, etc., it can be said that the most popular research tool is an online questionnaire. All studies relied on psychological models, such as TPB and TRA. The main results, which were most often obtained due to the previous research, are the following: the psychological characteristics of a person, the economic and social conditions surrounding him influence the desire to pirate. Male sex was considered the most prone to piracy. However, depending on the field of study, the age of the respondents and the location of the study, the results vary (Appendix A).

2. Statement of the research question

In the part of literature review, we demonstrated that series, although they are subject of digital piracy, they do not have sufficient coverage in the research. Also, there are not enough studies in the field of factors which influence consumers' choices in relation to subscribe to paid streaming services for watching series. This is the reason why the present study is directed to series. Thus, the determination of factors influencing consumer behaviour in connection with piracy in television series will be the aim of empirical research. What is also important, the present study will focus on Russia, since no preliminary study of this kind has been conducted in this country. Therefore, the purpose of this study is to identify the factors affecting the digital piracy of television series in Russia. From a review of the literature it becomes clear that it is impossible to conduct a study that would reveal all the factors affecting the motives of digital piracy. Therefore, in order to reduce it, it is necessary to focus only on one of the most popular factors described in previous studies: models based on expectations, ethics, attitude. Since this thesis relates to the field of consumer behaviour, it is advisable to focus first of all on individual factors. So, the framework of our research is supported by the aim to fill the gap.

Our study consists of several stages in the following sequence:

a) formulation of the hypotheses;

b) the design of the sample;

c) data collection;

d) data analysis, namely generalization and interpretation;

e) summarizing the results of practical importance for the future development of streaming services and reducing digital piracy.

This part of the paper gives special emphasis to the methodology. Here it is critically to describe the data to be analysed, and the methods to be used in carrying out the study. The research in this paper is adapted to the one of the most popular among digital piracy studies socio-cognitive decision-making model that explains behaviour by intention and by three decisive models: attitude, subjective norms and perceived behavioural control. And it is also added by deterrence and ethics theory.

In 1991, Isaac Ajzen singled out the theory of planned behaviour (TPB), which at the moment is an in-depth theory of reasonable action (TRA). TRA holds that an individual's actual behaviour is consistent with her/his intention to perform an action. Attitude towards the behaviour and subjective norms creates behavioural intention. In later development, TPB adds another determinant of behavioural intention, i.e. perceived behavioural control. The study was also supplemented by a moral obligation and perceived benefits theories [Arli & Tjiptono,2016].

Our research question is posed as follows "What factors influence the consumer's decision to choose a paid subscription to the streaming service for watching series?" Considering previous studies [Dilmperi et al.,2017], we may define hypotheses in order to find out factors which lead people to their consumer choices. Attitude is a tendency to react consistently positively or negatively to the events surrounding the individual: actions, people. It could be affected by communication media that takes into consideration a priority the probable circumstances of file sharing or advantages of legally paid subscription [Fleming et al.,2017]. Attitudes towards a particular piracy behaviour are a function of the belief that performing the behaviour will guide to a peculiar result [Arli & Tjiptono,2016].

H1. Consumer's attitude towards digital piracy was positively related to consumer's intention to pirate digital products.

Subjective norms are a measure of the possible or permitted behaviour of an individual as provided by the norms of law and on society. If an individual feels approval from others regarding some factor, this increases his confidence and the likelihood of reproducing any intention [Fleming et al.,2017].

H2. Subjective norms (herd effects) towards digital piracy is positively related to consumer's intention to pirate digital products.

Perceived behavioural control. It is assumed that perceived behavioural control is determined by the common set of available controlling beliefs. Perceived behavioural control is influenced by internal and external factors. Internal: individual beliefs about the ease, accessibility of a person to the necessary resources, opportunities for successful behaviour. External: various difficulties, barriers to the implementation of certain behaviours. For example, Perceived Behavioural Control (PBC) can predict the effectiveness of deterrent barriers against illegal media content sources, such as websites [Fleming et al.,2017].

H3. Perceived behavioural control is negatively related to consumer's intention to pirate digital products.

Moral obligation refers to an "individual's moral obligation to execute the operation or feeling of guilt". In previous studies, it was found that moral obligation influenced intention in the context of unethical behaviour and could be added to the TPB as a separate determinant of attitude [Arli & Tjiptono,2016].

H4. Moral obligation is negatively related to consumer's intention to pirate digital products.

The idea of perceived benefits represents that each piracy behaviour is embraced as having a consequence that can be either negative or positive [Arli & Tjiptono,2016].

H5. Perceived benefits are positively related to consumer's intention to pirate digital products.

To fully understand consumer thinking, the survey is based on the deterrence theory. If people are aware of the severity of punishment for crimes or misconduct, they tend to more often try to avoid committing crimes. This theory is very often used in research on digital piracy, such as the fear of legal consequences. Deterrence theory addresses the effect of punishment certainty and severity on individual behaviour. The theory posits that individuals are rational actors who make choices to practice illegal behaviour. It also states that illegal behaviour can be curbed by the threat of punishment. Thus, it is logical to confirm that the fear of legal consequences should reduce the desire of users to engage in the process of digital piracy [Arli&Tjiptono,2016].

H6. Fear of legal consequences (The possibility of punishment) is negatively related to consumer's intention to pirate digital products.

We also put forward hypotheses regarding the relationship between behaviour and sociodemographic and descriptive criteria, namely:

H7. Females feel more fear of punishment for using pirated digital content.

H8. Males are more to the intent to use pirated content than women.

H9. People with higher incomes are less susceptible to using pirated content.

H10. People with a higher degree of education are less inclined to use pirated content.

H11. People who spend most of their time on the Internet on social networks are more prone to online piracy.

H12. The more people tend to spend time on the Internet, the less they are prone to digital piracy.

3. Methodology

The general research perspective is quantitative it primarily focuses on survey conducted over the Internet for a certain period of time (1 month). The questionnaire for our study was based on a study on musical piracy by Williams [2016]. In addition, the survey included questions clarifying how each factor influence on customers' choice in favour of an illegal or legal source, considering the specifics of the study, namely the series industry. The questionnaire was created and placed in Google-forms, since it allowed to increase the speed of response increase, moreover, this method is most convenient for respondents, since they had the opportunity to take a survey from their digital devices. Initially, the questionnaire was compiled in Russian, in order to facilitate the passage of the survey to respondents and increase the number of volunteers, thus reducing the rate of refusals to pass because of the language barrier. Due to the specific focus of the research topic, which to some respondents might seem overly frank, the questionnaire was initially sent to five people asking for feedback on the structure of the questionnaire, as well as the wording of questions. As a result, seven questions were reformulated to make them less aggressive and easier to understand. For the bachelor thesis, the questionnaire was again translated into English, including changes made after the pilot launch of the online questionnaire. Most of the questions were evaluated on a 7-point Likert scale, where 1 point refers to the option "totally disagree", and 7 points to "fully agree". The exception is demographic questions and clarifying questions about the details of content consumption.

The benefits of internet-based research are: reduced costs, the ease of survey creation and administration, and the ability to eliminate many errors associated with collecting and recording data. The online research is also including the question-filter, which is able to divide the respondents into a control and experimental group to receive an answer to stated hypotheses.

Since the main goal of our study is to measure behavioural attitudes to various factors, the Likert scale of consent / disagreement, which was the most popular and most in demand in similar studies, was most suitable for us. In the modern world there are many types of rating scales, the purpose of which is to directly measure behavioural attitudes. One of the most popular in research in general, as well as in the study of digital piracy, the Likert scale is used. In 1932, Likert invented a method for measuring the human relationship to objects in terms of their degree of agreement or disagreement, using the cognitive and affective components of relationships. The format of such a scale assumes a fixed choice and is intended for measuring installations. The Likert scale rubs human experience with a linear one and suggests that it is possible to measure. Scales can be with five, seven answers, which allows a person to more accurately express his degree of agreement or disagreement with a specific statement [McLeod, 2008].

The main advantages of the Likert scale, which determine the popularity of this tool, is to avoid monosyllabic answers. With their help, the researcher can get the opinion of the respondent close to the truth. Each answer is coded and as a result, the data can be analysed and the corresponding results obtained. There are also threats to the credibility of the responses received on this scale due to social desirability. Depending on the research topic, people can give socially-approved answers in order to avoid being condemned. However, an anonymous questionnaire format can solve the bias problem in relation to social desirability, reducing the social pressure on the respondent.

The questions in the questionnaire are divided into 6 blocks, each of which has a different focus, but in general determines the main factors of consumer choice in favour of streaming services or pirated content and various facts of people's motivation, as well as to determine the respondent's portrait. (Appendix B)

The first block in the questionnaire is devoted to questions about the type, duration of employment of people on the Internet, serials and commitment to streaming services, about the experience of digital piracy.

This block consists of the following 7 questions:

1. How much time do you spend on the Internet?

2.How do you spend time on the Internet? What do you spend the most time on?

3. Have you ever engaged in digital piracy over the internet?

4. How often do you watch series?

5.Do you use pirated content exclusively for watching series or do you also prefer pirated books, music, software, games?

6. What series have you watched in the last 30 days?

Also, this block of questions includes the last question, which is a filter that allows to divide the respondents into two groups: those who are currently using any streaming service, and those who exclusively use pirated viewers of series.

7. In the past 30 days have you used a streaming service for watching series?

The second block of questions was sent to clarify and collect more detailed information about those who use streaming services: their preferred platforms, about their paid subscriptions, factors of this choice.

8. Do you currently subscribe to some streaming service?

9. Is the subscription paid?

10. In the last 30 days have you used any of the following streaming services for watching series?

11. What factors determine the choice of this streaming service?

The third block of questions is based on the three previously described socio-cognitive models of decision-making: The theory of planned behaviour: attitude, subjective norms, perceived behavioural control; ethics theory: moral obligations, perceived benefits; deterrence theory: Fear of legal consequences. The third block is almost identical to the fourth block, but slightly different for the two groups of respondents. For those who use a paid subscription, questions concern the factors that prompted them to choose this method: image quality, sound, translation quality of foreign series, fear of punishment for using pirated content.

Questions 12-19 concerning the theory of planned behaviour (TPB) were grouped according to theories.

Attitude:

12. I intend to engage in piracy over the internet in the future

13. I would prefer to use a streaming service for watching series than to download or watch series illegally via Internet or a file sharing network

14. Is digital piracy a problem in Russia?

15. What is your reaction to this statement? "Streaming services are the future because they avoid illegality, but give access to unlimited viewing of series and offer some rewards for their producers."

16. I feel that streaming services pay a sufficient amount of royalties to artists and all those involved in the shooting process for their work

Subjective norms:

17. When considering the way of watching series, I am influenced by my peers and family

Perceived behavioural control:

18. For me, to engage in piracy over the internet is easy

19. I do not meet any boundaries (search difficulties, blocking sites) in order to use pirated content:

Questions 20-27 concerning Ethics Theory were grouped according to theories.

Moral obligation:

20. I would not feel guilty if I engaged in piracy over the internet for watching series

21. Overall, my attitude towards pirated watching series through the internet is:

Perceived benefits:

22. If I am able to illegally watch series for free on the internet I am reluctant to then purchase the subscription for watching series legitimately

23. If I am able to legally watch series for free on the internet I am reluctant to then purchase the subscription for watching series legitimately

24. I could not afford to purchase all the subscriptions to streaming services whose series I would want to watch

25. What factors influence your decision to use a paid subscription to streaming services?

26. What factors influence the choice in favour of pirated content to view the series?

27. Do any of the following affect your decision to subscribe to a streaming service and could enhance the benefits of using pirated content?

Question 28 concerning Deterrence Theory was also grouped according to theories.

Fear of legal consequences:

28. There is a chance I will face legal repercussions if I illegally download or watch series from the internet

The fourth block is also based on socio-cognitive models of decision-making and partially repeats the questions of the third block, except 25 question about factors which influence decision to use a paid subscription to streaming services. However, now it is aimed at collecting information for those who prefer pirated digital content. For those who are still watching pirated serials, questions focus on analysing their attitude towards piracy and the reasons why respondents do not choose a paid subscription.

The fifth block of questions is for respondents, who prefer pirated digital content. The purpose of this question is to discover how people would act if there were strict punishment in the Russian Federation for any kind of use of digital pirated content and about the minimum payment conditions under which respondents would change their choice.

28. If everyone around you (friends, relatives) began to use paid subscriptions to watch series, would this influence your choice in favour of paid subscriptions?

29. If control on the Russian Internet would be more thorough and sites with illegal access to series would be closed, what would you prefer?

30. How much would you be willing to pay for digital content monthly?

The final block of questions was completely based on the collection of demographic data: gender, age, education, occupation, income, to determine the respondent's portrait.

1.What is your city?

2.What is your gender?

3.How old are you?

4.What is the level of your education?

5.What is your daily activity:

6.How do you assess the financial situation of your family?

Our study falls into the type in which it is not possible to determine the probability of getting any element of the population into the sample. Therefore, the sample should be formed in a different way. Due to the objectives of the study, as well as the chosen research strategy in similar studies [Phau & Liang, 2012], our sample is deterministic. Our sample type is convenience. Such a sample is formed when potential research participants declare their desire to take part in it. To do this, we announced our intention to conduct a study and invited those who wanted to meet our criteria to take part in it. Then, we sent a survey to respondents. The study intends to consider the age of individuals for our sample based on the target audience of the largest streaming channels Netflix, HBO, Hulu which includes males and females between the ages of 18-44 [McAlone, 2017]. Also, they are respondents that are living in Russian Federation at the current moment. Thus, our sample consists of 201 respondents.

In order to proceed to the stage of statistical analysis of the data obtained, it was necessary to carry out several steps with the data:

a) collect and merge data;

b) data cleaning;

c) coding open questions.

The survey took 10 minutes, so not all volunteers were ready to complete the survey until the end, which complicated and delayed the collection process. Then, the data cleansing stage followed. This was the next time-consuming stage, as many questions were open. For this reason, respondents could give similar questions in different formulations, which would spoil the results, so it was necessary to clean up the data and bring them into one format. The most important stage for subsequent statistical processing in the SPSS was the stage of data coding.

All questions and answers to them were coded as follows:

Table 1

"How much time do you spend on the Internet?" = time

I do not use it at all

1

Almost do not spend time on the Internet

2

Few times a week

3

I use the Internet every day, less than an hour

4

Every day, more than an hour

5

Every day, more than 3 hours

6

Every day, more than 5 hours

7

Every day, more than 10 hours

8

I am always online (24 hours a day)

9

Other

0

Table 2

"How do you spend time on the Internet? What do you spend the most time on?" = Int

Social networks

int_1

Search of information

int_2

Reading of forums

int_3

Reading of e-books

int_4

Listening to music

int_5

Watching films

int_6

Watching series

int_7

Games

int_8

Other

int_0

Table 3

"Have you ever engaged in digital piracy over the internet?" = involvement

Yes

0

No

1

Table 4

"How often do you watch series?" = frequency

Everyday

1

In one day

2

A couple of times a week

3

Once a week

4

A couple of times a month

5

Semiannually

6

Do not look

7

Other

0

Table 5

"Do you use pirated content exclusively for watching series or do you also prefer pirated books, music, software, games?" = purpose

Only for watching series

purp_1

Download illegal books

purp_2

Download illegal music

purp_3

Download illegal games

purp_4

Download software illegally

purp_5

Table 6

"In the past 30 days have you used a streaming service for watching series?" = streaming_use;

Yes

1

No

0

Table 7

"Do you currently subscribe to some streaming service?" = current_subscription;

Yes

1

No

0

Table 8

"Is the subscription paid?" = paid_subscription;

Yes

1

No

0

Table 9

"In the last 30 days have you used any of the following streaming services for watching series?" = streaming_brand

Yes

1

No

0

Table 10

"What factors determine the choice of this streaming service?" = choice

Service cost

choice_1

Payment system

choice_2

High speed of appearance of new content (earlier than on TV)

choice_3

Lack of advertising

choice_4

Content quality (image, sound)

choice_5

Choice of content (availability of new products, archive of serials)

choice_6

Recommendation system

choice_7

Ability to watch TV channels

choice_8

Other

choice_0

Table 11

"I intend to engage in piracy over the internet in the future" = piracy_future

extremely improbable

7

improbable

6

slightly improbable

5

neutral

4

slightly probable

3

probable

2

extremely probable

1

For questions:

a) "I would prefer to use a streaming service for watching series than to download or watch series illegally via Internet or a file sharing network" = streaming_series;

b) "Is digital piracy a problem in Russia?" = problem;

c) "What is your reaction to this statement? Streaming services are the future because they avoid illegality, but give access to unlimited viewing of series and offer some rewards for their producers" =reaction;

d) "I feel that streaming services pay a sufficient amount of royalties to artists and all those involved in the shooting process for their work"=royalty;

e) "When considering the way of watching series, I am influenced by my peers and family"=herd_effect;

f) "For me, to engage in piracy over the internet is easy"=easiness;

g) "I do not meet any boundaries (search difficulties, blocking sites) in order to use pirated content"= lack_of_boundaries;

h) "I would not feel guilty if I engaged in piracy over the internet for watching series"=guilt;

i) "If I am able to illegally watch series for free on the internet I am reluctant to then purchase the subscription for watching series legitimately"=illegally;

j) "If I am able to legally watch series for free on the internet I am reluctant to then purchase the subscription for watching series legitimately"=legally;

k) "I could not afford to purchase all the subscriptions to streaming services whose series I would want to watch"=purchase;

l) "There is a chance I will face legal repercussions if I illegally download or watch series from the internet"=law;

m) "If everyone around you (friends, relatives) began to use paid subscriptions to watch series, would this influence your choice in favour of paid subscriptions?"= influence.

Table 12

Likert scale

strongly disagree

1

disagree

2

slightly disagree

3

neutral

4

slightly agree

5

agree

6

strongly agree

7

Table 13

"Overall, my attitude towards pirated watching series through the internet is" = attitude

very unfavourable

1

unfavourable

2

slightly unfavourable

3

neutral

4

slightly favourable

5

favourable

6

very favourable

7

Table 14

"What factors influence your decision to use a paid subscription to streaming services?" = defect

The risk of computer viruses

defect_1

Slow loading time

defect_2

Loss of part of the income of product creators (companies, screenwriters, producers, authors, artists)

defect_3

Poor audio quality of downloadable content

defect_4

Risk of prosecution

defect_5

Likely legislation of the Russian Federation entails serious consequences regarding the illegal use of copyright of digital content

defect_6

None of the above

defect_7

Other

defect_0

Table 15

"What factors influence the choice in favour of pirated content to view the series?" = fact

Ability to save money

fact_1

Familiarize yourself with the content of the series in order to understand its further interest in it

fact_2

View only one favourite series from the producer

fact_3

View a large number of series that are available only on different streaming services

fact_4

Fear to appear "divorced for money" among their social environment if the same can be seen for free

fact_5

Unwillingness to pay for intangible things that exist only in the network

fact_6

Refusal to pay for the work of producers of serials / films, as they are already very rich

fact_7

Other

fact_0

Table 16

"Do any of the following affect your decision to subscribe to a streaming service and could enhance the benefits of using pirated content?" = benefit

Exclusive content

benefit_1

Low cost

benefit_2

Convenience of the interface

benefit_3

Image quality (Full HD, 4K)

benefit_4

Sound quality (5: 1)

benefit_5

Lack of advertising

benefit_6

Site / application design

benefit_7

Money support for the manufacturer

benefit_8

Friends recommendation

benefit_9

None of the above

benefit_10

Other

benefit_0

Table 17

"If control on the Russian Internet would be more thorough and sites with illegal access to series would be closed, what would you prefer?" = control

Buy a paid subscription to the streaming service to watch favourite series

1

Would refuse to spend time watching series

2

Other

0

Table 18

"How much would you be willing to pay for digital content monthly?" = amount

1000 rubles and more

1

500 - 1000 rubles

2

Less than 500 rubles

3

Not at all

4

The social demographic block was also coded to detect additional links in statistical analysis.

Table 19

"Your city of residence" = city

St. Petersburg

1

Moscow

2

Vladivostok

3

Arkhangelsk

4

Kemerovo

5

Barnaul

6

Veliky Novgorod

7

Tver

8

Chita

9

Chelyabinsk

10

Blagoveshchensk

11

Petropavlovsk-Kamchatskii

12

Porkhov

13

Novosibirsk

14

Sochi

15

Table 20

"What is your gender?" = gender

Female

1

Male

0

"How old are you?"= age.

Table 21

"The level of education" = education

lower secondary

1

secondary education

2

specialized secondary education

3

partially completed higher education

4

higher education

5

scientific degree

6

Table 22

"Your occupation" = activity

Pupil

1

Student

2

I open my own business

3

Owner (or co-owner) of own business

4

Employee

5

I do not work

6

Other

0

Table 23

"How do you assess the financial situation of your family? " = financial_situation

We live extremely economically, there is enough money for daily expenses, but buying clothes is already difficult

1

There is enough money for food and clothing, but the purchase of large household appliances without recourse to the loan is problematic

2

We are generally well-off, but we cannot afford expensive purchases (travel, car, etc.) without recourse to a loan or to pre-accumulate the required amount

3

We are wealthy, we can easily afford to buy a car or expensive vacation

4

I find it difficult to answer

5

In this part we also describe the econometric method which are selected for checking hypotheses. To identify decisive factors, we decided to use IBM SPSS Statistics. This software package is suitable for the purposes of our study, as it allows for various statistical analysis from fairly complex actions with data to simple calculations based on qualitative or quantitative data. One of the advantages of SPSS statistics is the ability to use data of various formats and to create visual and understandable graphs, tables, diagrams, descriptive statistics. SPSS provides an excellent graphical representation of the data, as well as a corresponding result for the data [Importance and benefits of SPSS in research, 2017].

We use statistical methods, such as custom tables, factor analysis, the reliability analysis, analysis of variance (ANOVA), based on the program SPSS. The goal of factor analysis is to identify hidden variables or factors explaining the structure of correlations within a set of observed variables. Factor analysis is frequently used to reduce the dimension of the data to search out several factors that interpret most of the variance observed for a significantly larger number of explicit variables. Factor analysis can be used to form hypotheses about causal mechanisms. Also, it is necessary to provide the analysis of reliability. This is called reliability analysis. Reliability is calculated by counting the number of deviations on a scale. So, for example, this can be obtained through the definition of a relationship between the scores of different scales. As a result, if due to the analysis of reliability high, it means the consistency of the results on the scales and in the result, we can be confident in the reliability and representativeness of the scales. Then, we also need to use custom tables and calculate the logistic regression to identify the factors that have an impact.

Description of the results

In order to get a portrait of a potential consumer, we can present you a portrait of our respondent. 201 people have fully completed the survey, aimed at identifying the factors of commitment to paid subscriptions to streaming services, or to select pirated content services. As a result of the online survey, we obtained such descriptive statistics.

Responses from our respondents were received from different cities in the Russian Federation. A total of 15 cities were surveyed: Arkhangelsk, Barnaul, Blagoveshchensk, Velikiy Novgorod, Vladivostok, Kemerovo, Moscow, Novosibirsk, Petropavlovsk-Kamchatsky, Porkhov, St. Petersburg, Sochi, Tver, Chelyabinsk, Chita. However, the majority of our respondents were located in large Russian cities. Based on the analysis, we have identified the top 3 most common cities, such as: St. Petersburg, Moscow, Vladivostok.

Figure 1. TOP-3 cities of respondents

Most of the responses were received from female representatives, who made up 137 people from 201 respondents (68.16%), 64 remaining respondents were male (31.84%).

Figure 2. Gender

In our study, respondents also noted the level of their education. So, according to the results of the analysis, we have 3 respondents (1,5%) with lower secondary, 6 (3%) with secondary education, 8 (4%) with specialized secondary education, 131 (65,2%) with partially completed higher education, 52 (25,9%) with higher education, 1 (0,5%) with scientific degree. Thus, in our survey, most people have either incomplete higher education or higher education.

Among the proposed employment options among the population, we got the following situation: 3 (1,5%) respondents go to the school, 145 (72,1%) go to the university, 3 (1,5%) are on the opening stage of their own business, 32 (64, 32%) are employed and 4 (2%) respondents do not work at all. Among them there are two respondents (4,02%) who combine work and study.

Assessing their financial situation of family respondents answer the following: 6 (3%) respondents live extremely economically, there is enough money for daily expenses, but buying clothes is already difficult, 29 (14,4%) respondents have enough money for food and clothing, but the purchase of large household appliances without recourse to the loan is problematic, 115 (57,2%) respondents are generally well-off, but they cannot afford expensive purchases (travel, car, etc.) without recourse to a loan or to pre-accumulate the required amount, 37 (18,4%) respondents are wealthy, they can easily afford to buy a car or expensive vacation, 14 (7%) respondents found it difficult to answer.

According to received answers about the series watching' frequency 20 (9,95%) respondents watch series every day, 31 (15,42%) in one day, 55 (27,36%) a couple of times a week, 28 (13,93%) once a week, 31(15,42%) a couple of times a month, 31(15,42%) semiannually, 5 (2,49%) have other periodicity.

Figure 3. The frequency of series' viewing

Respondents answered how much time they spend on the Internet: among the respondents, no one was found who use Internet few times a week or less than an hour. The majority of the respondents (64 - 31,84%) use it every day, more than 5 hours, then another large group (57 - 28,36%) use it every day, more than 3 hours. A sufficient number of respondents (40 -19,90%) use every day, more than 10 hours. Slightly fewer people (29 14,43%) use the Internet more than an hour during a day, and 7 respondents (3,48%) are always online (24 hours a day) 4 persons (1,99%) gave other answers.

Figure 4. Amount of time on the Internet

Figure 5. Types of activities

Additionally, according to the survey people prefer spend their time mostly on social networks (185 respondents - 25,69%), next in great request is search of information (124 -17,22%). Third most popular is watching series (114-15,83%). Also, respondents rather often listen to music (109 -15,14%). Least on the Internet people read e-books (29-4,03%), read forums (26-3,61%) and play games (23-3,19%).

Among the 17 most famous services in the list, 3 streaming services were recognized as the most popular, namely: Amediateka was chosen by 36 respondents (52, 94%), Netflix - by 19 (27, 94%), IVI - by 13 (19,12%). But, it is interesting that in "others" most of the respondents attributed the service Ororo.tv, which helps to watch series in original English language.

Figure 6. TOP-3 streaming services

We also received quite interesting statistics on the recently watched series, the leaders of whose rating were such series as: Game of Thrones (was chosen 86 times), the Keepers (13), the popularity of which is related to recent release of the new season or series in general. Also, in TOP-5 there are series Love Death + Robots (8), Chilling Adventures of Sabrina (7) and Riverdale (5).

However, a recent viewing does not mean that the series has been added to their list of favourites. We were able to make this conclusion by comparing the previous statistics with the one where the respondents could optionally choose the series offered by the authors of the survey. As a result of a comparative analysis of the series "Game of Thrones" has lost its leading position relative to the previous rating and now the first place in the Netflix' series is "Stranger things" (62), when only 24 people have chosen "Game of Thrones", and third position is adult animated science fiction sitcom "Rick and Morty" (18).

Figure 7. TOP-5 recently watched series

Figure 8. TOP-3 favourite series from the list

We also clearly showed that out of 201 respondents, only 82 people used streaming services. Of these people, only 70 have a subscription at the moment, of which only 63 respondents have a paid subscription.

Figure 9. The number of users

We also used custom tables to get a better interpretation of the data. Based on their results, we obtained some results.

Firstly, we knew which features can make people to subscribe to a streaming service and refuse to use pirated content. Among respondents, who exclusively watch series from illegal sources, the most favourites ones were the lack of advertising (81), image and sound quality (81), exclusive content (55). This choice is clearly due to the fact that people who prefer illegal services watch pirated content, which is often devoid of good quality and is possible only when watching a large number of commercials of various kinds. However, people who are already have a paid subscription, also highlight the importance of such factors, like image quality (52), lack of advertising (57) and exclusive content (47). These advantages attract more current and new consumers to streaming services.

streaming_use

use

digital

piracy

use

streaming

service

Exclusive content

55

47

Low cost

26

28

Convenience of the interface

47

30

Image quality

81

52

Sound quality

81

41

Lack of advertising

81

57

Site / application design

12

24

Money support for the manufacturer

12

12

Friends recommendation

20

14

Figure 10. Benefit and streaming use

Secondly, comparing the preferred ways to spend time on the Internet, the survey showed that both groups of respondents, subscribers of streaming services (75-90,36%) and consumers of pirated content (112- 94,92%) most often use social networks. The next most popular Internet user of streaming services is to watch series (56) and search information (52). Thus, we can conclude that the more people watch series, the more they tend to buy a paid subscription to make this process more enjoyable and of high quality. Among them, who use pirated content, the most popular activities are: search of information (79), listening to music (64), watching films (64). The choice is evenly distributed, which means it can be assumed that the less a person is concentrated on any one hobby, the more he is inclined to use illegal means to satisfy all his desires.

streaming_use

use

digital

piracy

use

streaming

service

Social networks

112

75

Search of information

79

52

Reading of forums

17

10

Reading of e-books

17

13

Listening to music

64

46

Watching films

64

49

Watching series

58

56

Games

12

9

Figure 11. Int and streaming use

Thirdly, we knew that both groups of respondents have ever used pirated content, which they used most often to watch series: 99 (84%) among respondents who use pirated content, 61 (74%) among respondents who prefer streaming services. Thus, we can conclude that people with the subscription to at least one streaming service, are less prone to download illegally series.

streaming_use

use

digital

piracy

use

streaming

service

Only for watching series

99

61

Download illegal books

68

45

Download illegal music

47

17

Download illegal games

35

20

Download software illegally

39

27

Figure 12. Purpose and streaming use

Additionally, studying what factors make people choose a particular streaming service, we found that choice of content (availability of new products, archive of serials) was determined like the most important (30 respondents), then content quality 33, lack of advertising 31, service cost 30, high speed of appearance of new content 19, recommendation system 12, payment system 5, ability to watch TV channels 1.

streaming_use

use

streaming

service

Service cost

30

Payment system

5

High speed of appearance of new content

19

Lack of advertising

31

Content quality

33

Choice of content

38

Recommendation system

12

Ability to watch TV channels

1

Figure 13. Choice and streaming use

To obtain practical conclusions, we also decided to compare the distribution of factors for choosing streaming services between Russian cities, especially between big ones. As a result, we see that for respondents from St. Petersburg one of the most crucial criteria is choice of content29, content quality 25 and lack of advertising22. While in Moscow people, along with the factors that the respondents chose (choice of content5, content quality5, lack of advertising6) in St. Petersburg, are most concerned about service cost 9.

city

use

digital

piracy

use

streaming

service

St. Petersburg

18

9

Moscow

3

2

Figure 14. Choice and city

For our study, we also decided to check the distribution of the financial condition of the respondents. So, people who live extremely economically, have enough money for daily expenses, but buying clothes is already difficult chose by service cost (2), lack of advertising (2) and choice of content (2). Respondents who have enough money for food and clothing, but the purchase of large household appliances without recourse to the loan is problematic are oriented by lack of advertising (8) and choice of content (8). Clients who are generally well-off, but who cannot afford expensive purchases without recourse to a loan or to pre-accumulate the required amount prefer choice of content (21). And, finally, respondent who can easily afford to buy a car or expensive vacation make their choice by content quality (9).

financial_situation

We live extremely economically, there is enough money for daily expenses, but buying clothes is already difficult

There is enough money for food and clothing, but the purchase of large household appliances without recourse to the loan is problematic

We are generally well-off, but we cannot afford expensive purchases (travel, car, etc.) without recourse to a loan or to pre-accumulate the required amount

We are wealthy, we can easily afford to buy a car or expensive vacation

I find it difficult to answer

Service cost

2

7

15

4

2

Payment system

0

1

3

0

1

High speed of appearance of new content

0

4

11

4

0

Lack of advertising

2

8

15

5

1

Content quality

2

4

16

9

2

Choice of content

1

8

21

6

2

Recommendation system

0

4

7

1

0

Ability to watch TV channels

0

0

1

0

0

Figure 15. Choice and financial situation

Moreover, we found that the average age of those who are interested in the ability to watch TV channels is rather higher (42) than the age of respondents (23), who are keen on service cost, payment system, high speed of appearance of new content, lack of advertising, content quality, choice of content and recommendation system.

age

mean

Service cost

23

Payment system

23

High speed of appearance of new content

23

Lack of advertising

23

Content quality

23

Choice of content

23

Recommendation system

22

Ability to watch TV channels

42

Figure 16. Choice and age

Based on a comparison by gender, it was proved that women are more interested in choice of content (2921,17%), lack of advertising (22 16,06%) than men. Male representatives gave their preference for the cost of services (1320,31%). In this case, the preference of both sexes (11males 17,19%, 22 females 16,06%) in relation to the quality of the content is almost equal.

gender

use

digital

piracy

use

streaming

service

Service cost

13

17

Payment system

3

2

High speed of appearance of new content

3

16

Lack of advertising

9

22

Content quality

11

22

Choice of content

9

29

Recommendation system

4

8

Ability to watch TV channels

1

0

Figure 17. Choice and gender

Comparing the intentions of men and women, we got that most men intend to engage in piracy in the future "extremely probable" (21 32,81%), or "probable" (17 26,56%), when women were more likely to answer "probable" (35 25,55%), or even "slightly Improbable" (30 21,39%). Thus, it can be argued that men are more prone to piracy in the future than women.


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