Capstone Project Report On

The
Factors affecting intension of Indian
consumers towards adoption of VoD services

SUBMITTED TO: LOVELY PROFESSIONAL UNIVERSITY

In partial fulfillment of the requirements for the award of degree of
Master of Business Administration

Submitted by: Supervisor:

PRAVESH KUMAR SONI (11304663) AMIT KAKKAR

VIRENDER THAKUR (11304957) Assit. Professor LPU

DEPARTMENT OF MANAGEMENT LOVELY

PROFESSIONAL UNIVERSITY PHAGWARA

(2016-2018)

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 DECLARATION

We hereby declare that the capstone project work entitled The Factors affecting
intension of Indian consumers towards adoption of VoD services submitted to
Lovely Professional University, is a record of an authentic work done by me under
the guidance of Mr. Amit Kakkar, Assistant Professor, Lovely Professional
University, in order to fulfill the requirement of project. This work has not been
copied from any source and whatever decoration and connection made in the
circuit is a total dedicated work by me only.

...........

Pravesh Kumar Soni (11304663)

Virender Thakur (11304957)

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 ACKNOWLEDGEMENT

It is our extreme pleasure presenting my capstone project report on , The Factors

affecting intension of Indian consumers towards adoption of VoD services
We express our deep gratitude to our mentor Mr. Amit Kakkar, for guiding me
during each and every minute detail about this endeavor. He has been a constant
source of motivation for us throughout the whole project work.

Last but not the least we are thankful to all the faculty members who directly or
indirectly helped us at various stages of our project duration and ultimately
contributing in making our project fully operational. We would like to thank all our
friends for their support, for all the thoughtful and stimulating discussions that
encouraged us to think outside the box.

Pravesh Kumar Soni

Virender Thakur

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 CERTIFICATE

This is to certify that the Report entitled, The Factors affecting intension of
Indian consumers towards adoption of VoD services submitted by
Pravesh Kumar Soni and Virender Thakur in partial fulfillment of the
requirements for the award of degree of Masters of Business Administration at
Lovely Professional University, Punjab is an original work carried out by them
under my guidance. To the best of my knowledge and belief the matter embodied
in the report has not been submitted by them to any other University/Institute for
the award of any Degree/Diploma.

Amit Kakkar

Assistant Professor

Mittal School of Business, LPU

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 INDEX

Sr no. Content Page no.

1. Declaration 2

2. Acknowledgement 3

3. Certificate 4

4. Introduction 6-12

5. Literature Review 13-17

6. Technology Acceptance Model 18-26

7. Research Methodology 27-33

8. Construct Validity 34-42

9. Conclusion 43-45

10. Bibliography 46

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INTRODUCTION

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VOD Services (Video on Demand Services)

Video on demand (VOD Services) they are the systems which allow the users to watch and listen
to the video or audio content such as movies, television shows and music when they want to
irrespective of the broadcast timing, which was the prevalent approach with over the air
broadcasting during the 20th century? IPTV (Internet Protocol Television) technology is
generally use to bring the video on demand to television, personal computers and mobiles.

Television based VOD services are stream content through a set-top box (such as Videocon d2h)
and personal computers and mobiles allow the real time streaming and also have the options to
download the streaming video on the device. The majority of companies offer both VOD
services and free content where the user can buy or select a movie, show, or music and it begins
to play on the device where the user want. On downloading it to a device it can be converted to
portable medias such as DVD and CD which can be rented or purchased from the providers or
the vendors and can be used for the future also.

Internet Television is an increasingly popular form of the VOD which can be accessed via
desktop of the client applications such as Google play store or Apple iTunes online content store.

Some of the airlines are also providing or offering the VOD services as in flight entertainment to
the passengers through individually controlled video screens embedded in seatback, armrests or
offered via portable media players. Some of the VOD services provide subscription based
products that can be accessed only after the payment on monthly bases such companies are
Netflix, etc. other services uses the advertising based model to access the bundles for free of
cost.

Functionality of VOD services

Downloading and streaming VOD systems provides the user all the features of a portable media
player. Some VOD system stores the stream program on hard disk drive and use a memory
buffer to allow the user to access the function of fast forward and rewind digital videos. Now it is
possible to put videos on servers of Local Area Network in which the companies can provide a
rapid response to the users. Now cable companies are using this technology and coming up with
their own application on Android, IOS and Windows platform to provide the customer a batter

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and much more faster access to their bundle anywhere and anytime. In addition cable services
are launching the systems with the combination of live streaming and demand videos. The recent
launches application of the cable companies usually have the phrases GO or WATCH which are
the attempts to compete with the Subscription Video on Demand services (SVOD) since they
lack in live news, sports, etc. such companies are SONY, Viacom 18, etc. streaming of the
videos can serve a wider community using WAN in which the case of responsiveness gets
reduced. Downloading VOD contents are practical to homes equipped with cable modems or
DSL connections. Previously these systems are placed at particular markets having the cable
hubs. In the telecommunication world they are placed either in the central office or in a newly
created location called a Video Head End Office (VHO).

History of VOD Services

The video on demand (VOD) technology used tapes as a realtime source of video streams. In
1994,a VOD service formed a major part of the Cambridge Digital Interactive Television Trial in
England. This provided video and data to 250 homes and a number of schools connected to
the Cambridge cable network. The MPEG-1 encoded video was streamed over an ATM network
from an ICL media server to set top boxes designed by Acorn Online Media. The trial
commenced at a speed of 2 Mbit/s to the home, subsequently increased to 25 Mbit/s. The content
was provided by the BBC and Anglia Television. Although a technical success, difficulty in
sourcing content was a major issue, and the project closed in 1996. In 1998, Kingston
Communications became the first UK company to launch a fully commercial VOD service and
the first to integrate broadcast TV and Internet access through a single set-top box using IP
delivery over ADSL. By 2001, Kingston Interactive TV had attracted 15,000 subscribers. After a
number of trials, Home Choice followed in 1999, but were restricted to London. After attracting
40,000 customers, they were bought by Tiscali in 2006 who were in turn bought by TalkTalk in
2009. Cable TV providers Telewest and NTL (now Virgin Media) launched their VOD services
in the United Kingdom in 2005, competing with the leading traditional pay TV
distributor BSkyB. BSkyB responded by launching Sky by broadband, later renamed Sky
Anytime on PC. The service went live on 2 January 2006.

Sky Anytime on PC uses a legal peer-to-peer approach, based on Kontiki technology, to provide
very high capacity multi-point downloads of the video content. Instead of the video content all
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being downloaded from Sky's servers, the content comes from multiple users of the system who
have already downloaded the same content. Other UK TV broadcasters have implemented their
own versions of the same technology, such as the BBC's iPlayer, which launched on 25
December 2007, and Channel 4's 4oD (4 On Demand) which launched in late 2006. Another
example of online video publishers using legal peer-to-peer technology is based on Giraffic
technology which was launched in early 2011 with large Online Video-on-Demand publishers
such as US based VEOH and UK based Craze's Online Movies Box movie rental service.
The BBC, ITV and Channel 4 planned to launch a joint platform provisionally
called Kangaroo in 2008. This was abandoned in 2009 following complaints investigated by
the Competition Commission. That same year, the assets of the defunct Kangaroo project were
bought by Arqiva, who used the technology behind Kangaroo to launch the SeeSaw service in
February 2010. A year later, however, SeeSaw was shut down from lack of funding.

VOD services are now available in all parts of the United States, which has the highest global
take-up rate of VOD. In 2010, 80% of American Internet users had watched video online, and
42% of mobile users who downloaded video preferred apps to a normal browser. Streaming
VOD systems are available on desktop and mobile platforms from cable providers (in tandem
with cable modem technology) who use the large downstream bandwidth present on cable
systems to deliver movies and television shows to end users, who can typically pause, fast-
forward, and rewind VOD movies due to the low latency and random-access nature of cable
technology. The large distribution of a single signal makes streaming VOD impractical for
most satellite TV systems. Both EchoStar/Dish Network and DirecTV offer video on demand
programming to PVR-owning subscribers of their satellite TV service. Once the programs have
been downloaded onto a user's PVR, he or she can watch, play, pause, and seek at their
convenience. VOD is also quite common in more expensive hotels. VOD systems that store and
provide a user interface for content downloaded directly from the Internet are widely available.

According to the European Audiovisual Observatory, 142 paying VOD services were operational
in Europe at the end of 2006. The number increased to 650 by 2009.
At the January 2010 Consumer Electronic Show in Las Vegas, Sezmi CEO Buno Pati and
president Phil Wiser showed a set-top box with a one-terabyte hard drive which could be used
for video on demand services previously offered through cable TV or broadband. A movie, for

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example, could be sent out once using a broadcast signal, rather than numerous times over cable
or fiber-optic lines, and this would not involve the expense of adding many miles of lines. Sezmi
planned to lease broadcast spectrum to offer a subscription service which National Association
of Broadcasters president Gordon H. Smith said would provide a superior picture to that of cable
or satellite, at a lower cost.

Types of VOD Services

The VOD services stands for the Video on Demand and there are three types of VOD services

a. SVOD (Subscription Video on Demand): SVOD refers to the subscription video on

demand. Is it similar to the traditional television packages that a customer need to buy to
see a particular set of channels for example dishTV a customer needs to buy the
particular packages of channels. SVOD is allowing the customer or user to consume as
much as content they desire on this platform at a flat rate of per month. With the SVOD
services the user has the freedom to opt out on their interest and dont have a term
contract as previously the user have with the cable television services. This advantage of
SVOD provides a greater flexibility to the user. Consequently, the providers of SVOD
are challenged with the retaining of the customers.

b. TVOD (Transactional Video on Demand): TVOD refers to the transactional video on

demand. It is just opposite of the SVOD. With TVOD the customer has to purchase the
content on pay per view basis. There are two subcategories of the TVOD.

1. Electrical sale through by which the customer have permanent access to a piece of
content once purchased.

2. Download to rent where customer can access the content for a limited time upon
renting.

TVOD services tends to offer more recent releases which is beneficial to the rights
holder for higher revenues and for the customers for getting the timely access to the new
content. These services have the capability of retaining the consumer by proving the

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 attractive packages, discounts and price incentives. With greater access to the internet,
TVOD is quickly relabeling itself online for instance amongst APPLE and Amazon.

c. AVOD (Advertising Video on Demand): AVOD refers to the advertising video on

demand or ad based video on demand and this service is totally free to the consumers.
Much like the television consumer will have to sit through advertisements for instance on
YouTube where ad revenue is used to offset production and hosting costs. AVOD is
employed by traditional channels and as these move into online catch up its likely to see
more of these in future. Its main disadvantage is that premium content owners rarely use
AVOD as it generates lower amount of revenue than SVOD and TVOD.

VOD Services in India

Gone are the days when we had to rush back home to catch our favorite television programs.
Technology now brings programs from all over the world to us. The Video on Demand (VoD)
service lets us stream or download movies, shows, serials, concerts etc. of our choice at a time
convenient to us at the comfort of our home. The VoD service can be availed either by installing
a set-top box for streaming or using a video recorder to download videos anytime we want. This
idea has let service providers come up with concepts like Subscription Video on Demand that
lets user get a monthly subscription and view a package of audio/video content of their choice.

In the last decade, VoD has revolutionized the way Indian homes watch television. With
growing demand, there are many players in the market offering many types of VoD services at
very competitive rates.

Different types of video on demand (VoD) service providers in India are:

DTH Service Providers DTH companies like Tata Sky, Dish TV lets its customers download
Hollywood and Bollywood movies, TV shows and music videos from their well-categorized
video library. The users can also watch latest five episodes of their favorite serials any day with
the Catch Up TV service. This service includes a wide variety of Indian channels so that you
will never miss a single Saas-Bahu clash. The Video on Demand services can be installed by
connecting the set-top box to a stable internet connection manually or with the help of their
executive assistants. Limitations of DTH VoD services is that you need to download the content

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you want to watch on set top box and it has a lead time before you actually get to watch your
favorite video.

Media Companies - Media companies like EROSNOW and Reliance Entertainment offer video
on demand portals like [Link] and [Link]. They have a VoD arm apart from their
main entertainment business services. These portals offer VoD content in many Indian
languages. With these portals, you need not wait for your favorite shows to download on local
storage but you still need a high-speed internet connection to opt for these services that stream
movies or shows online instantaneously.

Independent VoD companies Mainstream video on demand companies like Spuul let users
stream movies or TV shows on the go through mobile. Just download their app and make sure
that you have a stable 3G/4G [Link] or Wi-Fi connection. Spuul also
offers VoD services for PCs, TVs and game consoles to access their favorite content anywhere in
the world. Bound by high speed mobile internet connection again, its popularity will catch up
with the evolution of network infrastructure in India.

Video on demand (VoD) on cable TV - Still using the good old cable networks for your TV?
QWIK entertainment ensures that you dont miss all the Video on Demand fun while still
keeping your cable connection intact. This is an independent Subscription Video on Demand
service, much like a value added service, to your regular cable connection that brings home
quality HD content without an Internet connection. With a quick enquiry with your cable
operator or a simple subscription procedure, you can watch all your favorite Hollywood,
Bollywood and movies in many Indian languages, catch up TV serials, TV shows, kids TV and
karaoke music. The advantage Qwik video on demand service has over other types VoD services
is it does not require internet connection, therefore once can enjoy on demand entertainment
without advertisements and buffering. It has over 5000 hrs of wide variety of content which no
other service provider offers. Qwik entertainment is backed by Indias largest digital network
cinema chain

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LITERATURE
REVIEW

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Video on demand (VOD) are systems which allow users to select and watch/listen to video or
audio content when they choose to, rather than having to watch at a specific broadcast time.
IPTV (Internet Protocol Television) technology is often used to bring video on demand to
televisions and personal computers.

The on-demand video streaming industry in India has been well and truly percolating, with a host
of developments since the latter half of last year. Production houses have ventured into this space
and an array of international players are making a beeline for the Indian market in order to
expand their services. A bonanza of new video offerings across multiple avenues is set to be
unleashed, catering to the varied tastes of a very heterogeneous Indian audience.

What makes India unique as a market is this very heterogeneity - a cluster of markets with each
having its own salience. That aside, the infrastructural constraints as well as the peculiarity of
consumer behaviour that it presents, makes it one of the most exciting and, in the same vein,
challenging markets for video on demand (VOD) players to operate in.

Success Factor

In the VOD space, this translates to having video catalogue diversity, freshness and exclusivity
to make the target audience want to experience your service. The role of technology in being a
service delivery differentiator is all the more pronounced in making the viewing experience
superlative and, therefore, retaining the interest of the viewers. This is exemplified through
improved navigation and user interface, smart video discovery, video optimization and seamless
video viewing across devices and networks. Lastly, forging strategic partnerships across the
ecosystem of studios, telecom service providers, technology enablers and payment solution
providers, is important in order to get the competitive edge to win market share.

Understanding viewers through data-backed insights

Video streaming OTT players are in essence, purveyors of entertainment. The more we are tuned
into what our audience demands and consequently work towards their fulfilment, the better
would be the chances of success. Acting on consumer insights and analytics therefore need to be
an integral part of the business strategy. The more the viewers' experience on the platform gets

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personalised, the better the engagement quotient. Personalisation entails understanding
consumers' preferences in terms of the types of videos they wish to watch based on their viewing
history.

Video consumption patterns

The following video consumption behavioral patterns hold a lot of relevance to the challenges
that VOD players in India specifically and emerging markets in general are confronted with.

A shift from 'What's on TV?' to 'Streaming a video of my choice'

The audience is different and so are their viewing patterns. The demographics that VOD players
cater to are people of the 'Experience Generation' - those in the 18-25 age group, who love to
consume entertainment on the go and watch videos of their choice at a time and place of their
convenience. Unlike a TV-watching audience, they do not schedule their lives on the basis of
when a program or film is being broadcast. The kind of content they consume is significantly
different from what the TV audience is wont to viewing. It's therefore a foregone conclusion that
curating content that is youth centric, trendy and that strikes a chord with this generation is of
paramount importance.

Demand for vernacular entertainment:

As people of Tier 2 and Tier 3 towns and rural areas enter the digital fold, the demand for
entertainment in vernacular languages too will come about. Given that 78% of Indians prefer to
watch videos in their native languages, VOD players with work towards offering their viewers a
multi-genre and multi-language content catalogue. As 2016 witnessed VOD players in India
foraying into co-creation of original video series in addition to adding catch-up content to their
catalogue. This is a course of natural progression to stay relevant and appeal to their audience.

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Torrent vs. paid content:

Downloads via torrent are dominant in India, and the propensity to pay and watch videos is
significantly lower than in developed markets. So how does a VOD player monetize in a
challenging scenario such as this? It is a belief that India is one of the most price sensitive among
the emerging markets, but what our surveys have given us to understand over the last eight years
in this market is that once Indians see the value in what you're offering, they will have not have
inhibitions about paying. The Indian consumers are therefore really more value conscious than
price sensitive.

The right revenue model

Content is an expensive proposition. Content that is the latest and in demand entails high
licensing fees for VOD service providers. This cost needs to be recovered in order to make the
business viable. This is done either through advertising revenue or through a subscription model.
The challenge with advertisements as a revenue source is that mobile video and VOD platforms
still do not command the same rates as those of television broadcast channels. The challenge
with the subscription model is the low proclivity among viewers to pay.

Preference for short form video consumption on mobile devices:

While players in India are offering their subscription services in a range of price points, data
costs -- or in more lucid terms, the cost of the broadband connection over which the OTT video
streaming service is accessed --are often forgotten. These can significantly burn a hole in the
consumer's pocket and hence pose a challenge in terms of the degree to which VOD services will
be adopted.
We all know the extent to which smartphones have contributed to the video revolution. CISCO's
Visual Networking Index Report (VNI) has predicted that online video traffic will contribute
approximately 65% of all IP traffic in India by 2018 with smartphones contributing in excess of
70%. However, on account of network connectivity and high data costs, predominantly short
form content (videos having duration of under 10 minutes) is what 85% of Indian users consume

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on their mobiles. Only 33% of smartphone users in India use the device to view full length
movies.

The year 2016 had seen VOD players ink arrangements with broadband suppliers and telecom
service providers for cheaper and faster access. What would however be more practical is for
VOD players to leverage technology in order to help optimize quality of videos and facilitate a
buffer-free viewing experience or introduce off-line features for downloading and watching
videos at a later time.

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TECHNOLOGY
ACCEPTANCE
MODEL

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TAM FRAMEWORK

INN
INNOVATION

KNOWLEDGE OF
VOD

BEHAVIOURAL
PERCEIVED
MOBILITY INTENTION TO
USEFULNESS
USE

PERCEIVED EASE
CONVENIENCE
OF USE

FLEXIBILITY PERCEIVED
ENJOYMENT

PERCEIVED
COST

CONTENT

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Technology acceptance model gives us understanding that why and how the player in the E-
learning come to accept or reject a technology and how they use that technology. Technology
acceptance model (TAM) indicate an crucial theoretical contribution to understand the
information system(IS) usage and information system acceptance.

When the people are introduce with the latest or new technology, there are two important factor
that is perceived usefulness(PU) and perceived ease of use(PEOU) that influence their decision
regarding when and how they will use the technology. The technology acceptance model was
developed by Fred Davis, Paul Warshaw and Richard Bagozzi.

Fred Davis 1989 in article MIS Quarterly and management science are the most highly cited
articles in those journals. Davis is listed in ISI [Link], which features the worlds
most influential researcher.

On the bases of Theory of Reasoned Action (TRA),Davis ,Warshaw and Babozzi in 1989
prepared the Technology Acceptance model(TAM) which deal with the prediction of the
acceptability of an information system. TRA and TAM both of which having strong behavioral
elements, consider that someone make an intent to act, they will be free to make move without
the any limitations. As theorist they developed the TAM model which backed by the hypothesis
that the beliefs, attitudes and intention are the crucial component in the acceptance of fresh
technology. The function of this model to predict the acceptability of a model and to discover the
adjustment and change which must be brought to the system in order to make it acceptable to the
users.

Technology Acceptance Model (TAM) is utilize or use by management information

system(MIS) prediction to asses the success or failure of the information system project.

Technology Acceptance Model is based on the following assumption:

(a) Perceived Ease of Use: when the end user perceives the target system as one that is easy to
use and nearly free of mental effort, they may have favorable attitude toward using the system.

(b) Perceived Usefulness: The degree to which individual users perceive that their use of the
target system would increase their work performance (Davis, 1993).

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(c) Attitude toward use of target system: This is the degree to which individual users would
assess and relate their use of the target system to their job performance (Davis,1993).

(d) Actual system use: defined as a form of external psycho-motor response that is quantified by
individual users real course of action (Davis, 1989).

Innovativeness
Personal innovativeness is defined as the leaning of an individual to try out any new information
systems. Personal innovativeness has a significant positive effect on online video on demand.
Innovative individuals have also been shown to be communicative, curious, dynamic,
venturesome, and stimulationseeking. It has been seen that innovative individuals are active
information seekers with regard to new ideas. it is generally expected that personal
innovativeness should have a profound positive impact on perceived usefulness, which in turn
should influence users intention to adopt VOD. Thus, this study hypothesizes the following:

H1. Personal innovativeness will have a positive effect on the perceived usefulness of VOD

Knowledge of VOD
Given that there have been very few studies conducted thus far addressing VOD knowledge, this
study try to find whether any relationship exists between VOD knowledge and the intention to
use VOD. The number of people who use mobile phones already exceeded the number of people
who uses desktop and television. With the limited amount of research on this subject, this study
attempts to explore the impact of VOD knowledge on the perceived ease of VOD use.
Mobile users with a high level of VOD knowledge are likely to find the VOD systems to be
easier, more convenient to use than mobile users lacking such knowledge. Thus, this study
hypothesizes the following:

H2. VOD knowledge will have a positive effect on the perceived ease of use of VOD.

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Mobility
The most significant quality of mobile technology is mobility, the ability to access services
ubiquitously, on the move, and via wireless networks and a variety of mobile devices, including
PDAs and mobile phones. In comparison with conventional method that is watching videos
through television and desktop by wired connection the VOD provide us flexibility, convenience,
more freedom and value, allowing us to access time-critical information, entertainment
regardless of time and place labeled the benefits provided by mobile technologies as anytime
and anywhere computing and defined the two most common dimensions of mobility
independence of time and place.

H3a. Mobility will have a positive effect on the perceived ease of use of VOD.

H3b. Mobility will have a positive effect on the perceived usefulness of VOD

Convenience
Many believe in the benefits of technology, but only when technology is premised on the
intention to make life easier for people and to improve the difficulty of common tasks.
Convenience as a research construct has primarily been discussed in the marketing and consumer
behavior literature. Convenience has also been identified as one of the most important
factor in the success of VOD. Currently VOD is delivered by streaming service providers like
Netflix and Amazon Prime where you can choose videos that are included in the catalog and
watch them whenever you want, wherever you want and as often as you want. Also unlike
traditional TV operators that bind you with long term contracts which are not easy to break away
from, VOD streaming services dont have any such contractual obligation. So you are free to
discontinue your subscription at any point of time at the click of a button. Also, you can
subscribe to more than one VOD service at a time since all these different subscriptions put
together may still cost you lower than a cable / satellite TV bill which keeps incrementing every
year. In a Traditional TV model, you can only avail of a Cable / satellite TV provider that is
specific to your geographic location, And this further limits you with the choices of TV service
providers whereas VOD lets you stream videos irrespective of which geography you belong to
since all you need to do is login to your streaming service account to get instant access to scores
of video
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Options you are not bound long term to any provider, you can subscribe to many at a time or
switch to anyone without having to worry about any costs, or regulations preventing you from
doing so, so in traditional TV, a viewer depending on where they are may have just one or two
options. And the providers may be forcing long term contracts, so when someone wants to
switch they cant do so easily.

H4a. Convenience will have a positive effect on the perceived ease of use of VOD.

H4b. Convenience will have a positive effect on the perceived usefulness of VOD.

Flexibility
VOD services give us a choice to watch the online content whenever and wherever we want .In a
Traditional TV model, you can only avail of a Cable / satellite TV provider that is specific to
your geographic location, And this further limits you with the choices of TV service providers
whereas VOD lets you stream videos irrespective of which geography you belong to since all
you need to do is login to your streaming service account to get instant access to scores of video

Options you are not bound long term to any provider, you can subscribe to many at a time or
switch to anyone without having to worry about any costs, or regulations preventing you from
doing so, so in traditional TV, a viewer depending on where they are may have just one or two
options. And the providers may be forcing long term contracts, so when someone wants to
switch they cant do so easily.

H5a. Flexibility will have a positive effect on the perceived ease of use of VOD.

H5b. Flexibility will have a positive effect on the perceived usefulness of VOD.

Perceived Enjoyment (PE)

To further model the role of intrinsic motivation in the TAM, Moon and Kim [2001] and van der
Heijden [2003] view perceived enjoyment as an intrinsic source of motivation, referring to the
performance of an activity for no apparent reason other than the process of performance itself.
Their research demonstrates that perceived enjoyment has an effect on both attitude and
consumers behavioral intention toward using a specified source. Similar to the construct of
perceived enjoyment, a system perceived to be easy to use will be conceived as more fun to use,
leading to a stronger linkage between perceived fun and attitude toward specific products but

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having no significant effect on consumers behavioral intention [Bruner II and Kumar, 2005]. An
individual can experience immediate enjoyment or fun from using a specific system, and
perceive any active involvement in using new technology to be enjoyable in its own right [Davis,
1989; Igbaria, Schiffman, and Wieckowski, 1994]. Prior studies of WWW and mobile commerce
incorporate perceived enjoyment into the TAM to gain a more accurate prediction of user
acceptance toward a specific source, primarily because a product or service used and associated
with enjoyment contributes to the causal relationship [(Bruner II and Kumar, 2005; Moon and
Kim, 2001; van der Heijden, 2003]. This study defines perceived enjoyment as the degree to
which a person believes that adoption of VOD is interesting and associates adoption with
enjoyment.

Therefore, the study hypothesizes that:

H6a: Perceived enjoyment positively affects attitude toward VOD.

H6b: Perceived enjoyment positively affects behavioral intention to use VOD.

Perceived Cost (PC)

Price perceives as an important cue in evaluating a consumers pre-purchase decision.

Specifically, consumers tend to consider the relevant relationship between price and their
expectations by comparing it with their previous experiences. Relationships linked to price focus
on product quality, performance, and consumer satisfaction that matches an expectation of price
fairness for a product or service If consumer perceptions of performance or quality for a product
or service exceed his or her expectations, then their perceptions of the listed price would lead to a
favorable attitude toward accepting it, and the price would be perceived to be fair because the
consumers value perception of a product or service exceeds his or her perceived sacrifice
[Herrmann, Xia, Monroe, and Huber, 2007].

On the other hand, Bolton and Warlop and Alba [2003] emphasize that consumer perceptions of
price fairness are derived from past prices, competitors price, and vendor costs, which elicit
perceptions of a products current price and represents an individuals assessment of whether a
product or service price is reasonable or acceptable. Campbell [1999] shows that consumers
perception of price unfairness tends to lower their shopping intention, primarily because a

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pricing decision by the firm is perceived as unfair compared with a counterpart product or
service. Further, Wu and Wang [2005] examine that cost (i.e., equipment costs, access cost, and
transaction fees) resulting from the product itself has a negative significant effect on behavioral
intention toward use. In our study, given that the incumbent operator offers a free set-top box to
subscribers, such a reduction in the cost of VOD use will be viewed by potential consumers as
more competitive than traditional media competitors, such as cable TV or ISP operators who
provide data transmission services over the Internet. Hence, we define a competitive price as the
extent to which, given that the operator offers an innovative function or service different from
the offering of other homogenous products, consumer perception of the price of a product or
service is that that reasonable price is reasonable, and directly affects their willingness to
purchase.

Therefore, the study hypothesizes that:

H7: Price perceptions positively affect behavioral intention to use VOD.

Behavioral Intention (BI)

Fishbein and Ajzen [1975] state that attitude is an individuals pre-disposition to react in a
consistently favorable or unfavorable manner to a given object. They argue that attitude toward
use is an individuals evaluation of the desirability of a specific system application. Behavioral
intention to use is a measure of a persons likelihood to purchase or adopt a product or service,
whereas the TAM model focuses on actual use to represent a self-reported measure of time or
frequency of adopting the application [Davis, 1989]. However, it is not easy or practical to obtain
an objective measurement of an individuals intention to engage in a behavior. Research shows
that both theoretical and empirical support exists for the powerful correlation between intention
to engage in a behavior and actual behavior [Cho, 2006; Dabholkar and Bagozzi, 2002;
Vijayasarathy, 2004]. To maintain instrument brevity, we adopt behavioral intention as a
surrogate for the merging of behavioral intention and actual use in the research model, and define
it as an individuals intention to use VOD.

Perceived Usefulness
In a TAM model perceived usefulness was originally defined as the extent to which a person
believes that using a system would enhance his or her job performance and effectiveness (Davis,
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1989). Perceived usefulness allow the person to believes that using a particular technology will
enhance his or her productivity and performance.
Perceived usefulness is a construct tied to an assessment of the benefits that accrue to an
individual or firm by using the technology, while perceived ease of use is tied to an individual's
assessment of the effort involved in the process of using the technology
Measures of perceived usefulness video on demand services(VOD) are commonly used in terms
of increase the convenience of the people, improvement in mobility and improve or increase the
flexibility.
Davis made the Perceived Usefulness construct under the following benefits of usage;
(a) it may enable users to accomplish tasks more quickly, (b) it would enable users to improve
their performance, (c) it would increase their productivity, (d) it would enhance their
effectiveness, (e) it would make it easier to do what users wants to do and (f) users would find it
useful.
According to Ndubisi, et al, (2003) perceived usefulness has been reported to have the most
important influence on information technology (IT) usage. The determinants of perceived
usefulness have been studied by a number of IT researchers from system design characteristics,
to organizational factors, environmental forces, and demographic variables.

Perceived Ease of Use

Perceived ease of use refers to the extent to which person believe that using a system would be
free of mental efforts. It is also a major determinant of attitude towards use of TAM model.

Davis et al (1989) came to know that ease of use is one of the most important determinant of
system usage operating through the perceived usefulness. Perceived Ease of Use also refers to
the degree that, by using a technology will be the basis for predicting end-user acceptance of
computer technology (Lopez & Manson, 1997).On the other hand Perceived ease of use
developed by Davis under the construct of following benefits:
(a) it enables learning to operate it would be easy for the user, (b) users would find it easy to get
it to do what they want it to do, (c) users interaction with it would be clear and understandable,
(d) users would find it to be flexible to interact with (e) it would be easy for the users to become
skillful at using it and (f) users would find it easy to use.

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 RESEARCH
METHODOLOGY

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RESEARCH PROBLEM

To understand the Factors affecting intension of Indian consumers towards adoption of

VoD services. In-store environment is the most influential component of overall apparel retail
store. There had been very limited research on the retail store attributes and buyers purchasing
behavior studying the store attributes and its influence on buyers purchasing behavior,
particularly of apparel stores. As the sales staff is the connecting link between a store and buyers,
since they are expected to provide proper and up to date information to buyers therefore they are
considered to be a great source of creating clientele. Apparel retailers are experimenting with
new formats and rural areas are also being tapped by generating employment opportunities. In
apparel segment gaining and sustaining competitive edge with players in the market requires
knowledge of the store attributes or atmospherics that buyers access and use to categorize stores.
Hence, the major drivers of purchasing behavior must be examined with Indian perspective.
Extensive research has been done to examine the attitudes and preferences of the buyers of the
developed countries. However, slight academic attention is diverted towards studying buyers of
the emerging countries such as India.

SIGNIFICANCE OF THE STUDY

The purpose of the study was to know the Factors affecting intension of Indian consumers
towards adoption of VoD services. The aim of this research was to help the apparel retailers in
understanding their buyers better and to attract prospective buyers by understanding the factors
that influenced their purchasing behavior. Also this study provides insights about which formats
of apparel stores were more popular with other buyers with respect to each category of store. The
study will be of importance to apparel retailers as it will help them to take better buyer retention
measures. In addition, the study will be a great help to research agencies, academicians, firms in
retailing, consumers, business school students, etc. With the output of the research, the
companies under study will be able to identify the strategies that can be of most important to
them for retaining the buyers and identify the factors as well that will surely assist the retailers
dealing in apparels for improving their in-store atmosphere.

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SCOPE OF THE STUDY

The benefit of the study for the researcher is that it helped to gain knowledge and experience.
Also provided the opportunity to study and understand the impact of VOD services on youth.

The key points of my research study are:

Mobility of VOD Services.

Flexibility of VOD Services.
Convenience from VOD Services to users.
Innovativeness of VOD Services.
Content productivity in VOD Services.
Perceived usefulness of users on VOD Services.
Behavioural intention provided by VOD on customers.
Perceived ease of VOD services on user.

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RESEARCH DESIGN

A research design is a comprehensive plan developed to direct the study. The researcher needs to
prepare the master plan and specify the methods and procedures to be used for collecting and
analyzing. It is a part of planning and scheduling phase to delve into the research to prepare a
method for the data gathering, measurement and data analysis. Research design is a master
preparation determining the methods and processes for gathering and examining the data.
Research design is the theoretical arrangement within which research will be performed. The role
of research design is to facilitate gathering of significant information with least spending of time,
effort and money.

The focus of the study was to understand the Factors affecting intension of Indian consumers
towards adoption of VoD services while watching and downloading the videos online and offline
method using the various applications and the websites, the VoD services are in comparison to
the most renowned applications such as Netflix, VOOT, HotStar, etc. It was therefore, decided
to use explorative design, which befits into the pattern of investigation.

A structured questionnaire was used for the purpose of collecting the data. Care was taken to
cover respondents from the people of Jalandhar, Delhi, Banglore, and many other places.

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OBJECTIVES

The objectives of the study were as follows:

Objective 1: To study the Factors affecting intension of Indian consumers towards adoption of
VoD services.

Objective 2: To study the association of demographic factors with VoD services.

SAMPLE DESIGN

This part of the chapter deals with following stages:

Defining the target population of the concern

Determining the sampling method, the target population is the entire group a researcher is
interested in and the group about which the researcher wishes to draw conclusions

Sample Size: Sample size was determined using survey method. The formula is given as:

Z=Z value is 1.96 for 95% confidence level

P=percentage (picking a choice, expressed as decimal, 0.5 is used here)

C=confidence interval expressed as decimal 0.05.

Here C is the margin of error Corrected Sample Size

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SAMPLING TECHNIQUE

The study was descriptive in nature where in the first stage the questionnaire was distributed
randomly to the contact persons only. For the purpose of collection of data 100 respondents from
the contacts whom we know very well. Out of which only 56 questionnaires were answered in
one go, then 20 were answered in second go and at the end only 96 were completely done.

Then another 100 questionnaire were floated to the remaining known and random persons from
Jalandhar and Delhi mainly and got 106 responses 100 from the respondents whom we float the
questionnaire and 6 more form the random respondents who float forward the questionnaire.

The study was time bound.

DATA COLLECTION METHOD

Once the research problem has been defined the process of data collection begins. Data
collection is to gather the data from the population. The source of data can be either primary or
secondary.

PRIMARY DATA

The primary research was conducted on Factors affecting intension of Indian consumers
towards adoption of VoD services across users in JALANDHAR and Delhi based. The primary
research was done over 100 buyers on a pilot basis to authenticate the methodology and to
identify the reliability of the questionnaire. Subsequently, primary research was done with a
valid sample size of 200 with of users in Lovely Professional University, Jalandhar, Delhi,
relatives friends and random persons.

The questionnaire had two sections, first comprised of demographic profile and the second part
of questionnaire assessing attributes.

The questionnaire got filled mainly on the weekends as majority of the users are free from there
works and fill the questionnaire by understanding each of the question. The researcher was told
to continuously keep feedback of all the questionnaire that are distributed and keep a record on
the filled questionnaires sometimes the researcher is told to go out and ask few random people to
fill the questionnaire and make them understand the purpose of it. The questionnaire made to be
Page | 32
filled by only those respondents who actually use the VoD services and the doubts of the
respondents were clarified on the spot by the researcher. As soon as the survey concluded, the
respondents gathered entire questionnaires instantly and ensured that the respondent had
answered each and every question adequately. If any unanswered question was found, the
researcher requested the respondent to fill it. As a result of this approach, the amount of missing
values was reduced significantly.

SECONDARY DATA

Secondary data is the information that has been gathered not for the immediate study but for
some other purpose. For the research various books, journals, research papers, websites were
used to collect the information about history of VoD services and the Factors affecting intension
of Indian consumers towards adoption of VoD service

LIMITATIONS OF THE STUDY

Casual approach of some of the respondents towards filling the questionnaire.

Another limitation was evident with regard to both the geographic location at which the
research took place, as well as the sample from where the data was gathered.
The accuracy of the findings was limited to the opinion giving by the respondents.
The study was based on possibility of generalization of results which was limited due to
convenience sampling.
Respondents were reluctant to fill in the information in the questionnaire due to which the
response rate was quite low.
Time factor can be considered as a major limitation.
Information provided by respondents was sometimes biased.
Due to lack of awareness of respondents towards certain features, the questionnaire had
limited questions that mean limited features were only studied.

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CONSTRUCT
VALIDITY

Page | 34
COMPOSITE RELIABILITY

Composite reliability is a measure of the overall reliability of a collection of

heterogeneous but similar items
Calculate composite reliability for the latent variables, LISREL does not output the
"composite reliability" directly. You have to calculate it by hand.
SEM approach for reliability analysis, the reliability estimate from the SEM approach
tends to be higher than Cronbachs . Structural equation model for estimating
the reliability for the composite consisting of congeneric measures.
In SEM terms, the reliability of an indicator is defined as the variance in that indicator
that is not accounted for by measurement error. It is commonly represented by the
squared standardized multiple correlation coefficient, which ranges from 0 to 1.
However, because these coefficients are standardized, they are not useful for comparing
reliability across subpopulations.
Composite reliability = [SUM(A)] 2 /[(SUM(A)] 2 + SUM(B).
To test the reliability of the constructs, reviewers suggested us to report composite
reliability (CR) and Average Variance extracted (AVE) instead of Cronbach-alpha
(internal consistency of measures). Composite reliability is like the reliability of a
summated scale and average variance extracted is the variance in the indicators explained
by the common factor, average trait-related variance extracted. AVE's above 0.5 are
treated as indications of convergent validity. This use of CR and AVE emanates from the
two-step procedure.
AVE varies from 0 to 1, and it represents the ratio of the total variance that is due to the
latent variable.
The composite reliability estimates the extent to which a set of latent construct indicators
share in their measurement of a construct, whilst the average variance extracted is the
amount of common variance among latent construct indicators composite reliability is
like the reliability of a summated scale and average variance extracted is the variance in
the indicators explained by the common factor.
Composite reliability (i.e., the total amount of true score variance in relation to the total
scale score variance); the amount of scale score variance that is accounted for by all

Page | 35
 underlying factors; Composite reliability thus corresponds to the conventional notion of
reliability in terms of classical test theory.
Composite reliability should be equal to or greater than .7 and AVE should be greater
than .5.

CONVERGENT VALIDITY

Convergent validity, a parameter often used in sociology, psychology, and

other behavioral sciences, refers to the degree to which two measures of constructs that
theoretically should be related are in fact related. Convergent validity, along
with discriminant validity, is a subtype of construct validity. Convergent validity can be
established if two similar constructs correspond with one another, while discriminant
validity applies to two dissimilar constructs that are easily differentiated.

Convergent validity can be estimated using correlation coefficients. A successful

evaluation of convergent validity shows that a test of a concept is highly correlated with
other tests designed to measure theoretically similar concepts. For instance, to show the
convergent validity of a test of mathematics skills, the scores on the test can be correlated
with scores on other tests that are also designed to measure basic mathematics ability.
High correlations between the test scores would be evidence of convergent validity.

Convergent evidence is best interpreted relative to discriminant evidence. That is,

patterns of intercorrelations between two dissimilar measures should be low while
correlations with similar measures should be substantially greater. This evidence can be
organized as a multitrait-multimethod matrix. For example, in order to test the convergent
validity of a measure of self-esteem, a researcher may want to show that measures of
similar constructs, such as self-worth, confidence, social skills, and self-appraisal are also
related to self-esteem, whereas non-overlapping factors, such as intelligence, should not
relate.

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 Cronbcah Composite
Construct Mean AVE
alpha Reliability
Mobility
I believe VOD service is independent of place. 3.6149 0.69 0.969 0.57
I can use VOD service anytime while traveling.
Flexibility
I prefer watching Online content because I can schedule my
viewing.
3.7557 0.71 0.988 0.522
I prefer flexible viewing timings.
I prefer watching Online content because I can watch it
anywhere.
Convenience
VOD service is convenient because the phone is usually with me
VOD service is convenient because I can use it in any situation 3.69 0.739 0.972 0.525
VOD Service is convenient because VOD service is not complex
Watching Online using VOD service is convenient.
Innovativeness
I know more about new products/services before other people
do 3.45 0.7 0.98 0.54
I am usually among the first to try new products/services
New products/services excite me
MPK
I enjoy content watching through VOD service. 3.58 0.72 0.99 0.53
I would be confident to use VOD service for content watching.
PU
Using VOD service would enable me to watch content anywhere.
Using VOD services makes it easier for me to watch content.
I would find VOD services a useful possibility for watching 3.63 0.75 0.98 0.565
content.
Using VOD services would help me in understanding the things
better.
PEOU
Learning to watch content through VOD service is easy for me
I think learning to VOD services is easy 3.644 0.71 0.96 0.57
I think finding what i want via VOD services is easy
I think using VOD services is easy
PE
The process of using VOD services is enjoyable
3.63 0.73 0.988 0.585
While accessing VOD services, I have experienced pleasure
Overall, I believe that using VOD services is fun
PC
I think equipment cost is more for using VOD services. 3.49 0.76 0.972 0.49
I think the access cost is more for Using VOD services.

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I think transaction fee is more for using VOD services.
Content
VOD provides sufficient content.
I prefer watching Online content because it offers lot of options
to watch. 3.58 0.73 0.971 0.52
I prefer watching Online content because I can watch quality
content.
VOD provides content or information which I need.
Behavior Intention
During the next six (6) months, I intend to watch content
through VOD services. 3.6 0.69 0.991 0.6
Assuming I had access to VOD services, I intend to use it
I intend to increase my usage of VOD services in the future

Based on under given three conditions we determine the discriminant validity: -

1) When we compare the values of two constructs then the value of constructs succeeding
the constructs should be less than their own values.
2) Value of each construct should be larger than square of their values.
3) Diagonal represents the AVE values and all others values succeeding them should be less
than them.

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Page | 39
Page | 40
Regression Weights: (Group number 1 - Default model)

Estimate S.E. C.R. P Label

cmp_peou <--- cmp_inn .115 .042 2.714 .007

cmp_peou <--- cmp_mpk .305 .053 5.785 ***

cmp_peou <--- cmp_mob .071 .046 1.544 .122

cmp_peou <--- cmp_flx .176 .050 3.530 ***

cmp_peou <--- cmp_con .204 .062 3.307 ***

cmp_pu <--- cmp_mob .243 .050 4.882 ***

cmp_pu <--- cmp_flx .052 .055 .939 .348

cmp_pu <--- cmp_con .214 .065 3.276 .001

cmp_pu <--- cmp_peou .466 .059 7.906 ***

cmp_pe <--- cmp_peou .992 .069 14.303 ***

cmp_bi <--- cmp_pc .169 .060 2.844 .004

cmp_bi <--- cmp_cnt .312 .073 4.299 ***

cmp_bi <--- cmp_pe .154 .068 2.258 .024

cmp_bi <--- cmp_peou .101 .090 1.115 .265

cmp_bi <--- cmp_pu .212 .079 2.701 .007

1) Since the value is lesser than 0.05 Inn has a positive effect on peou.
2) Since the value is lesser than 0.05 mpk has a positive effect on peou.
3) Since the value is greater than 0.05 mob has a negative effect on peou.
4) Since the value is lesser than 0.05 flx has a positive effect on peou.
5) Since the value is lesser than 0.05 con has a positive effect on peou.
6) Since the value is lesser than 0.05 mob has a positive effect on pu.
7) Since the value is greater than 0.05 flx has a negative effect on pu.
8) Since the value is lesser than 0.05 con has a positive effect on pu.
9) Since the value is lesser than 0.05 peou has a positive effect on pu.
10) Since the value is lesser than 0.05 peou has a positive effect on pe.
Page | 41
 11) Since the value is lesser than 0.05 pc has a positive effect on bi.
12) Since the value is lesser than 0.05 cnt has a positive effect on bi.
13) Since the value is lesser than 0.05 pe has a positive effect on bi.
14) Since the value is greater than 0.05 peou has a negative effect on bi.
15) Since the value is lesser than 0.05 pu has a positive effect on bi.

If the value is greater than 0.05 it is giving the negative effect or showing the null hypothesis is
true but if the values are less than 0.05 than it is showing the positive feedback or proving the
alternative hypothesis.

Model Fit Indexes

CMIN/DF GFI RFI TLI IFI CFI AGFI RMSEA

3.850 0.958 0.90 0.926 0.978 0.977 0.88 0.07

Model fit index define the variable which implies whether proposed model is acceptable or not.
It consists of various variables such as GFI, RFI, TLI, IFI, CFI, AGF and RMSEA. So for the
model to be acceptable the GFI, RFI, TLI, IFI, CFI, AGFI value should be equal to 0.9 and the
value of RMSEA should be lower than 0.8.

So all the values are lower than 0.9 and we can consider the 0.88 to be approx. equal to 0.9 so
our model is accepted.

Page | 42
CONCLUSION

Page | 43
More and more media consumption is happening on digital media, and people are more time on
digital media as compared to traditional media. This increase can be credited to the improvement
in mobile devices technology and internet connectivity, which has provided the viewers with the
option of accessing digital media content on the go.

Audio and video have emerged as the leading online traffic generators and are expected to
increase their share of the pie with increasing internet penetration and service adoption.
Marketers are shifting budget spends in tune with the shift of viewer preference towards digital
media from traditional media.

India has the largest young population in the world which is driving the digital media
consumption in India. Internet traffic in India is being driven by mobile internet users. The major
reason for this will be the availability cost efficient smartphones in India, improving 3G and 4G
internet coverage and fast reducing data prices. This has given rise to the demand for on-demand
digital entertainment services like audio and video streaming. However, monetization models
for these services are still evolving.

Ecosystem players are struggling to identify the correct models that can be scaled and are
experimenting with various levers like price points, value offerings and mixed model approaches
to arrive at the most feasible option. Leading digital media players have adopted hybrid models
where they provide a lot of content free of cost but charge for their premium content.

Music streaming is emerging as the preferred consumption mode in India; the revenue from
downloads are on the way down and streaming is revenues are growing fast. The new music
listener generation in India prefers anytime, anywhere and on the go music in comparison to
carrying their music with them. The subscription model is expected to increase its reach as the
listeners propensity to pay for the digital content improves with time. However, the ad based
music service would also remain key contributor to the overall revenues for digital music
industry.

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Video industry in India is also seeing the shift towards digital content. Younger demographics
are guiding the video consumption in India. With improved network speeds, demand for HD and
UHD video content is expected to rise along with standard definition video streaming online.

Like digital music players, digital video players are also adopting both subscription and ad
monetization models and offering personalized offerings to maximize adoption.

Going forward, digital audio and video on-demand services will see a lot of activity. As this
space heats up, getting business model right will be critical for success.

Page | 45
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