South African Generation Y students’ attitude towards on-demand streaming services

Abstract

The world is becoming more and more digital. In recent years there has been a shift within the way entertainment is being consumed – from the traditional albums and DVDs to more digital options like audio and video-on-demand subscription services, also known as streaming services. This gives the users the opportunity to watch their favourite movie or listen to their favourite song wherever and whenever they want to, as long as an internet connection is available. This has led to consumers becoming independent, as it gives them control over when, where, and how they consume content. Streaming services are a fairly new development in South Africa, with a current internet penetration rate of 54 percent which partly explains the slow adoption amongst consumers. Although the adoption rate is relatively low, there has already been a decline in the selling of DVDs and CDs as the appeal of owning a physical library has become less attractive in an age where there are so many other ways to access films and music. DStv subscriptions are declining as customers move towards on-demand streaming services. Although this shift is gradual, the effect it has on the financial reports of the traditional TV industry is stark. Generation Y is seen as one of the first generations who had access to technology and the internet from an early age. This makes them more likely to write blogs, download music, send instant messages, and watch online videos, on-demand. Thus, combined with their potential to be high-income earners with the highest potential spending power, as result of obtaining a tertiary qualification make Generation Y students the ideal segment for streaming-service adoption. The primary objective of this study is to determine Generation Y students’ intention to use music and video on-demand streaming services. The sampling frame comprised a list of the 26 South African registered HEIs, a convenience sample of two HEIs situated in Gauteng province was selected. By using a non-probability convenience sample of 500 Generation Y students between the ages of 18 and 24 was selected for this study. A self-administered questionnaire was used to gather the required data. After the data cleaning, the 425 questionnaires which were usable giving a response rate of 85 percent. The collected data was analysed using an exploratory factor analysis, a descriptive statistical analysis, a correlation analysis, structural equation modelling and a two independent-sample t-test. Structural equation modelling revealed that Generation Y students displayed positive attitudes and intentions to use towards on-demand streaming services. Furthermore, perceived usefulness, perceived ease of use, and subjective norms displayed a positive influence on Generation Y students’ attitude towards on-demand streaming services. Although, social norms, opinions of family and friends, only have a slight influence on their choice of which on-demand streaming service to use or subscribe to. To conclude, the model indicated that Generation Y students’ attitude has a significant positive impact on their intention to use on-demand streaming services. The literature within this study is a clear indication that streaming services are taking over the entertainment industry. The growth in the streaming service industry increases competitiveness between the different streaming service providers. Consequently, for the service providers to be successful, they should attract subscribers through distinguishing factors such as competitive advantages in their marketing strategies. To obtain a competitive advantage, marketers and service providers should know what their potential target market’s wants, and needs are and then develop their marketing strategies accordingly. The youth are considered to be the current trendsetters within the market, influencing not only consumer behaviour within their generational cohort but consumer behaviour in general. Therefore, it is important for marketers to know the factors influencing Generation Y consumers’ attitude and behavioural intention on-demand streaming services