Abstract
In Korea, with the explosive growth of the internet and the change in consumer demand, Internet protocol (IP) television (TV) service is emerging as a substitute for the existing digital Cable TV (CATV) and terrestrial Broadcasting. This paper attempts to provide an ex-ante evaluation of the consumers’ preferences for a new IT technology using a case of IP-TV with such attributes as multiple channels, re-transmission of terrestrial network channels, video-on-demand (VOD), commerce by television (T-commerce), banking by television (T-banking), and short message service (SMS). To this end, a choice experiment method is applied, which makes the respondents choose hypothetical IP-TV alternatives featuring various combinations of attributes, through a survey data conducted in Korea. Overall, respondents revealed significant willingness to pay for multiple channels, re-transmission, VOD, T-commerce, and T-banking, but were not willing to pay a significant amount for SMS. Using the marginal WTP, the expected prices of various potential IP-TVs also are calculated and policy implications drawn for national-and industry-level IT related strategies.
| Original language | English |
|---|---|
| Pages (from-to) | 1217-1237 |
| Number of pages | 21 |
| Journal | 산업경제연구 |
| Volume | 24 |
| Issue number | 3 |
| State | Published - Jun 2011 |