Media Platform Competition - Adoption, Usage, and Global Impact of Broadband Technologies - page 267

significant correlation between users' satisfaction
with the information function and the users' age
(p<.01). Younger users were more satisfied with
IPTV's information function.

service and those who still kept cable TV service
in terms of the “age” and “income” variables,
while “the number of TV sets” variable
(t[455]=5.657, p<.01) was the exception.
As for the 111 IPTV users who still subscribed
to cable TV, only 7 users (6.3%) considered drop-
ping the cable service within six months because
of price. A total of 78 IPTV users had at least two
digital platforms, 22 IPTV users also subscribed
to digital cable TV, of which 5 users considered
dropping cable service within 6 months, and 63
IPTV users also had DTTV set-top boxes or built-
in digital TV sets. Since there was no subscription
fee for the DTTV service, if the users said that
they would consider dropping it, it meant that
they would consider not using DTTV facilities
within six months. For the 78 IPTV users who
had at least two digital TV platforms, 23 users
considered dropping the IPTV service within six
months (see Table 6).
The Chi-square analysis shows that the “most
frequently used digital platform” is not correlated
with “considering stopping the subscription
within 6 months” (χ 2= 6.556, p=.161 >.05).

4. PLATFORM
DISPLACEMENT EFFECT

This study sought to find out whether there was
a platform displacement effect, namely, whether
the IPTV users who were also cable TV subscrib-
ers stopped subscribing to cable TV after they
subscribed to IPTV. The results show that 59.1%
(n=349) of the users stopped subscribing to their
cable TV service after they had subscribed to the
IPTV service. 18.8% (n=111) of the IPTV users
still subscribed to cable TV. Therefore, a platform
displacement effect did occur.
Table 5 shows that the main reasons for stop-
ping subscribing to cable TV included “too expen-
sive” (35%, n=116), “children have to concentrate
on study” (23%), and “no time to watch” (17.8%).
Only 7.9% answered that they stopped their cable
TV service because they “can watch programs on
another digital TV platform.” In Taiwan, cable TV
subscribers can receive more than 100 channels
by paying NT$550 (USD 16) monthly. Before
October 2007, CHT's IPTV subscribers could
receive thirty five channels by paying NT$150
(USD 4.4). The result proves that the IPTV users
are very sensitive to price.
The t-test shows that there was no significant
difference for IPTV users who stopped cable TV

i. Satisfaction with the Provided Functions
and Cable TV Subscription

IPTV users subscribing to cable TV were
found to be more concerned with the medium's
entertainment function (60.9%, n=61) than with
its information function (39.1%, n=39) (see Table
2). The t-test showed that the IPTV users who
stopped cable TV subscription tended to be more

Table 5. Reasons why IPTV users stopped subscribing to cable TV

Stopped subscribing to cable TV (n=349)

No time to watch 17.8% (n=59)

Children have to study 23.0% (n=76)

Too expensive 35.0% (n=116)

Programs are not interesting 13.3% (n=44)

Can watch other digital TV 7.9% (n=26)