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Understanding the Intention to Use Netflix: An Extended Technology

Acceptance Model Approach

Article in International Review of Management and Marketing · November 2019

DOI: 10.32479/irmm.8771

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 International Review of Management and
Marketing
ISSN: 2146-4405

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International Review of Management and Marketing, 2019, 9(6), 152-157.

Understanding the Intention to Use Netflix: An Extended

Technology Acceptance Model Approach

Ufuk Cebeci1*, Oguzhan Ince1, Hulya Turkcan2

Department of Industrial Engineering, Istanbul Technical University, 34367, Maçka, İstanbul, Turkey, 2Faculty of Business
1

Administration, Gebze Technical University, 41400, Gebze, Kocaeli, Turkey. *Email: [email protected]

Received: 25 August 2019 Accepted: 30 October 2019 DOI: https://doi.org/10.32479/irmm.8771

ABSTRACT
Developments in information and communication technologies disrupt the traditional media ecosystem. New media has led to the emergence of many
digital platforms such as Netflix. Netflix has become very popular nowadays all over the world. Hence, this paper aims to reveal the determinants
of intention to use Netflix based on the technology acceptance model. For this purpose, a survey of 251 respondents in Istanbul was conducted. The
findings indicate that (i) self-efficacy and knowledge is positively related to perceived ease of use (PEOU), (ii) knowledge and PEOU is positively
associated with perceived usefulness (PU), (iii) PU predicts attitude, (iv) attitude predicts intention to use, and (v) technology anxiety attenuates the
positive effect of PU on attitude.
Keywords: Technology Acceptance Model, Digital Platforms, Netflix
JEL Classifications: C42, M31

1. INTRODUCTION of the intention to use Netflix. But it is observed that there is no

study that investigates the factors affecting intention to use neither
Today, media consumption is changed in terms of means, patterns, Netflix nor any other OTT streaming services.
and quality, because of the advancement of information and
communication technologies (ICTs) (Shim and Kim, 2018). Since it is still a gap in the literature despite required, this paper
Some of these advancements are the broadband network and aims to investigate the determinants of intention to use Netflix.
smart devices which promote to develop over-the-top (OTT) For this purpose, self-efficacy and knowledge are included in
services (Kim et al., 2017). OTT is one of the drivers of the new the Technology Acceptance Model model and their impacts
media ecosystem and the new media ecosystem, there are two are examined. Moreover, this paper aims to reveal the effect
keywords: mobility and internet (Kim et al., 2016). In this regard, of technology anxiety in the relationship between perceived
whereas cable TVs are not preferred, OTT services get attention usefulness (PU) and attitude. Thus, this empirical study contributes
increasingly in order to get entertainment content (Shim et al., to the literature by providing a comprehensive framework of
2018). Now, Netflix is the most popular OTT streaming service factors affecting the intention to use Netflix.
all over the world.
This paper is structured as follows. First, the main concepts
Netflix allows people to get content “anywhere, anytime and are reviewed briefly. Second, hypotheses are developed based
any device” (Hooper et al., 2010). Because of especially this on the theoretical background. Then, research methodology
opportunity, people show great interest to it in many parts of the and findings are explained. Finally, discussion and conclusion
world. Therefore, it is substantial to investigate the determinants are given.

This Journal is licensed under a Creative Commons Attribution 4.0 International License

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 Cebeci, et al.: Understanding the Intention to Use Netflix: An Extended TAM Approach

2. LITERATURE REVIEW to individuals’ evaluations of favorableness or unfavorableness

towards something (Lin, 2007).
2.1. Netflix
OTT offers video content through the Internet or IP based transmission Based on TAM, it is also possible for some external variables to
path (Federal Communications Commission, 2013). OTT services be effective on these main structures (Davis et al., 1989). In this
combine several contents such as movie and music; platforms such way, in order to explain the technology acceptance of the users in
as apps and social network platforms; and devices such as TV, PC, more detail, TAM can be expanded by adding external variables
and smartphone (Shin et al., 2016). Namely, it provides significant besides basic structures and this is an extended TAM approach.
flexibility to its users. Thus, people who want to get content anywhere,
anytime and any device show great interest in OTT services (Hooper In this study, extended TAM approach was adopted, and the external
et al., 2010). Now, the most popular OTT streaming services are variables which are self-efficacy and knowledge are examined as
Netflix, Hulu and Amazon Prime (Adhikari et al., 2014). factors related to PU and PEOU. Moreover, technology anxiety is
investigated as a moderator between PU and attitude.
Netflix is a major OTT service provider in a new mediascape that has
been global (Wayne, 2018). Netflix was established as a DVD rental
service in 1997 and it was serving online (Kim et al., 2016). Since
3. RESEARCH MODEL AND HYPOTHESİS
then, it has undergone two changes. In 1999, it started providing
3.1. Knowledge, PEOU and PU
unlimited DVD rentals for its customers at a monthly subscription
A potential barrier to adopt a specific technology is the lack of
fee and in 2007, it launched the online movie streaming service,
knowledge (Slade et al., 2015). Because knowledge on a specific
which is the basis of its current situation (Voigt et al., 2017). As of
2012, it started to introduce its original contents (Wayne, 2018). thing leads to beliefs and awareness about benefits, impacts, and
usage of it (Bang et al., 2000). Users with a high level of knowledge
Now, Netflix provides its customers to commercial-free and about a specific thing such as using mobile phone perceive it as
unlimited viewing of many contents such as TV-shows, movies, and easy to use and also be aware of its benefits more (Kim et al.,
documentaries through internet-connected devices. It is the foremost 2010). In this respect, if a user is knowledgeable about Netflix, this
subscription-based digital content delivery service (Kim et al., 2016). user will believe to use it easily and get benefits by using it. For
example, a user with knowledge on how to watch Netflix can use
2.2. Technology Acceptance Model (TAM) it easily through a device such as TV. Also, a user with knowledge
TAM is used to examine the factors that affect the user’s acceptance what the contents are Netflix offer (original contents, etc.), and
of the new technology and information system (Surendran, 2012). what the features of Netflix have (commercial-free, etc.) can
TAM is adapted from the Theory of Reasoned Action (TRA) by understand its benefits. Therefore, we hypothesized that:
Davis (Davis, 1989). It has four main constructs: Perceived ease of H1: Netflix knowledge is positively related to PEOU of Netflix.
use (PEOU), PU, attitude and intention to use. TAM assumes that H2: Netflix knowledge is positively related to PU of Netflix.
the beliefs PEOU and PU determinative for attitude and attitude
also affects intention to use (Davis et al., 1989). 3.2. Self-efficacy and PEOU
Self-efficacy is a belief individual has in own ability to do actions
PEOU is “the degree to which a person believes that using a in a specific manner (Sánchez and Hueros, 2010). For example,
particular system would be free of effort” and PU is “the degree people with computer self-efficacy believe themselves to do
to which a person believes that using a particular system would anything about computer. On the contrary, people who have not
enhance his or her job performance” (Davis, 1989). Attitude refers self-efficacy of using computer believe that using computers

Figure 1: Research model

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 Cebeci, et al.: Understanding the Intention to Use Netflix: An Extended TAM Approach

is complex and difficult. Moreover, self-efficacy determine the easily, they will be able to perceive the benefits it will provide to
people perceptions about their adoption to use technology and them and develop a positive attitude towards it. Therefore, we
also about their using it effectively (Reychav et al., 2019). In hypothesized that:
this respect, people with self-efficacy of using Netflix perceive H4: PEOU of Netflix is positively related to PU of Netflix.
that Netflix is user-friendly and using it is easy. Therefore, we H5: PEOU of Netflix is positively related to attitude toward using
hypothesized that: Netflix.
H3. Self-efficacy of using Netflix is positively related to PEOU
of Netflix. 3.4. PU and Attitude
TAM assumes that PU is antecedent of attitude toward a
3.3. PEOU, PU, and Attitude specific technology (Davis et al., 1989). PU of Netflix is
According to TAM, PEOU affects the PU and attitude the extent to which a person perceives to get more benefits
(Davis et al., 1989). Any technology which is difficult to use is (unlimited viewing, commercial-free, original content, low
not possible to consider as useful (Park et al., 2014). Because it price) by using Netflix instead of utilizing other technologies
is seen as a waste of time (Davis et al., 1989). Furthermore, users that provide similar services. If the user believes that one or
do not have a positive attitude towards it. Because instead of this more features and services offering by Netflix are beneficial,
time-consuming technology, the equivalent of this technology that the evaluations of the user about using Netflix will be positive
gives the same output with less effort is preferred. Namely, it is manner. Because PU is an outcome expectancy (Huang and
claimed that the technology, which is easy to use, will be accepted Liaw, 2005) and it is a key factor in personal evaluations.
more than other technologies if all conditions are equal (Davis, Therefore, we hypothesized that:
1989). Therefore, if the users perceive that Netflix can be used H6: PU is positively related to attitude toward using Netflix.

Figure 2: Moderating effect of technology anxiety 3.5. Attitude and Intention to Use
Attitude is opinions about whether a behavior favourable or
unfavourable and how the user perceives the outcomes of this
behavior (Verma and Sinha, 2018). Furthermore, it is the main
antecedents of intention to use based on TAM (Davis et al., 1989).
Namely, the positive thinking and evaluations of people about
Netflix lead to the desire to use Netflix. On the contrary, negative
assessments about Netflix cause them not to use it. Because if the
attitude is positive, behavioral intention is likely to be positive
(Verma and Sinha, 2018). Therefore, we hypothesized that:
H7: Attitude toward using Netflix is positively related to intention
to use Netflix.

Table 1: CFA results

Variables Items 1 2 3 4 5 6 7
Technology anxiety TA1 0.745
TA2 0.691
TA3 0.787
TA4 0.903
Self-efficacy SE1 0.734
SE2 0.907
SE3 0.540
Knowledge K1 0.799
K3 0.647
K4 0.703
PU PU1 0.828
PU2 0.873
PU3 0.839
PEOU PEOU1 0.829
PEOU2 0.915
PEOU3 0.678
Attitude A2 0.815
A3 0.813
A4 0.813
A5 0.790
A6 0.827
Intention to use IU1 0.882
IU2 0.934
IU3 0.897
PEOU: Perceived ease of use, PU: Perceived usefulness, CFA: Confirmatory factor analysis

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 Cebeci, et al.: Understanding the Intention to Use Netflix: An Extended TAM Approach

Table 2: Descriptive statistics, correlation coefficients, validity and reliability scores

Variables 1 2 3 4 5 6 7
Attitude 1
Tech_anxiety −0.156 1
Self-efficacy 0.408 −0.419 1
Knowledge 0.634 −0.197 0.725 1
P_usefulness 0.668 −0.154 0.656 0.915 1
P_ease_of_use 0.476 −0.239 0.702 0.620 0.784 1
Intention_to_use 0.813 −0.113 0.291 0.654 0.580 0.371 1
Means 2.617 6.049 5.443 5.984 6.215 5.664 5.766
Std. dev. 1.328 1.022 1.254 1.043 0.914 0.945 1.238
Cronbach’s α 0.905 0.877 0.706 0.734 0.882 0.844 0.930
AVE 0.659 0.617 0.551 0.517 0.717 0.661 0.818
CR 0.906 0.864 0.779 0.761 0.884 0.852 0.931

Table 3: Path model

Hypotheses Path Path coefficient Result
H1 Knowledge→PU 0.678* Supported
H2 Knowledge→PEOU 0.290* Supported
H3 Self-efficacy→PEOU 0.494* Supported
H4 PEOU→PU 0.355* Supported
H5 PEOU→Attitude −0.163NS Not Supported
H6 PU→Attitude 0.808* Supported
H7 Attitude→Intention to Use 0.818* Supported
χ2/df = 2.468, CFI: 0.934, IFI: 0.934, TLI: 0.922, RMSEA: 0.077
NS
P>0.05, *P<0.01. PEOU: Perceived ease of use, PU: Perceived usefulness

3.6. Moderating Role of Technology Anxiety Table 4: Moderated regression analysis

Technology anxiety is a fear of possible unfavourable outcomes Variable Model 1 Model 2
of using technology (Sam et al., 2005). Therefore, people with β T β t
higher level technology anxiety become tense and unhappy when PU 0.597 11.608** 0.613 11.838**
they need to use technology and even when they think of this Technology anxiety −0.024 −0.475NS 0.479 1.659*
possibility. They also tend to look unfavorably on technology PU* technology - - −0.510 −1.771*
anxiety
and avoid using it. Namely, technology anxiety may affect users’ R2 0.361 0.369
behaviors (Park et al., 2019). Hence, users with high technology F value 69.958 48.086
anxiety may find it difficult to have a positive attitude even if they NS
P>0.05, *P<0.1, **P<0.01. PEOU: Perceived ease of use, PU: Perceived usefulness
know the benefits of Netflix for them. Because they constantly
focus on possible negative consequences. When there is a high
30 years old smaller. According to the frequency of use Netflix,
level of technology anxiety, the relationship between PU and
21.1% of them use it every day and 31.9% are using it a few days
attitude is weak. Therefore, we hypothesized that:
a week.
H8: Technology anxiety negatively moderates the relationship
between PU and attitude toward Netflix.
4.2. Validity and Reliability
First of all, confirmatory factor analysis (CFA) was conducted
Figure 1 shows the research model which contains the hypotheses
using AMOS to evaluate measures’ validity and reliability. All
of this research.
variables were tested in a CFA model and items which have low
factor loading were eliminated in a step- by- step procedure. Table 1
4. RESEARCH METHOD AND ANALYSIS shows the factor loadings of items and factor structures. The results
represented the adequate model fit (Chi-square/df = 1.967, CFI:
4.1. Measures and Sampling 0.946, IFI: 0.947, TLI: 0.936, RMSEA: 0.062).
To test the hypotheses, multi-item scales were adopted from the
prior studies. For technology anxiety, self-efficacy, attitude and Table 2 presents the descriptive statistics, correlation coefficients,
intention to use, items were adopted from Bailey et al. (2017) and reliabilities of our variables. The average variance extracted
and items to measure knowledge, PEOU and PU were adopted (AVE) exceeds the threshold level 0.50 suggested by Fornell
from Kim et al. (2010). All of the scale items were measured by and Larcker (Fornell and Larcker, 1981). Composite reliabilities
a 7-point Likert scale. (CR) are also above the minimum acceptable value which is 0.70
(Fornell and Larcker, 1981). Furthermore, Cronbach’s alpha
The data was gathered through an online survey. The participants coefficients of the variables in the range of 0.706-0.930. It implies
are live in Istanbul and 251 usable responses were returned. Most that each Cronbach’s alpha coefficients above the 0.70 as suggested
of the respondents are male (65.7%). 99.6% of our respondents by Nunnally (Nunnally, 1978). These results indicated that all of
have received university or postgraduate degree and 93.6% are the measures have validity and reliability.

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 Cebeci, et al.: Understanding the Intention to Use Netflix: An Extended TAM Approach

4.3. Hypothesis Testing It is demonstrated that technology anxiety negatively moderates

To test our hypotheses, structural equation modeling (SEM) the relationship between PU and attitude. It is observed that there
analysis was employed. Results indicated that conceptual model is no study in literature which examine the moderating role of
fits well to data (Chi-square/df= 2.468, CFI: 0.934, IFI: 0.934, technology anxiety on the relationship between PU and attitude.
TLI: 0.922, RMSEA: 0.077). The results of hypotheses testing are Even if people believe that a particular technology will benefit
shown in Table 3. Our results revealed that Netflix knowledge is them, they may think that they can experience some adversity when
positively related to both PEOU of Netflix (β = 0.290, P < 0.01), using that technology. This likelihood reduces the effect of the
and PU of Netflix (β = 0.678, P < 0.01), supporting H1 and H2. perception that it is useful about this technology on their attitude
It is also found that self-efficacy of using Netflix is positively toward it. Therefore, new technology manufacturers should be
associated with PEOU of Netflix (β = 0.494, P < 0.01), aware of this negative effect of technology anxiety. In addition,
supporting H3. PEOU of Netflix is related to PU of Netflix a message should be given to consumers that they will not have
(β = 0.355, P < 0.01), whereas it is not related to attitude toward any problem due to this technology, will comfortable with using
Netflix (β = −0.163, P > 0.05). So, H4 is supported, but H5 is not. this technology, should not have anxiety.
Furthermore, PU of Netflix is positively related to attitude toward
Netflix (β = 0.808, P < 0.01) and attitude toward Netflix is also There are some methodological limitations in this study. First, this
positively related to intention to use Netflix (β = 0.818, P < 0.01), study is conducted in Istanbul in Turkey. Therefore generalizability
supporting H6 and H7. of our findings is a constraint. Second, the other possible problem
is the common method variance. Third, this study is cross-sectional
Hierarchical moderated regression analysis (Aiken et al., 1991) research. It is not certain that the conditions under which the data
is used to test the moderating effect of technology anxiety in the are collected remain the same. Also, the concepts are dynamic
relationship between PU of Netflix and attitude toward Netflix. and may change over time.
In this respect, first PU and technology anxiety as independent
variables and attitude as the dependent variable were tested in This study offers some recommendations for future studies. It is
Model 1. Then, interaction (PU*technology anxiety) is added in incorporated the self-efficacy and knowledge as external variables
Model 2. As seen in Table 4, technology anxiety attenuates the to the TAM model in this study. Future studies may examine any
positive effect of PU on attitude toward Netflix (β = −0.510, P < 0.1), other concepts such as personal innovativeness, perceived cost,
supporting H8. The moderating effect of technology anxiety and perceived quality. Furthermore, researchers may test our model
is further illustrated in Figure 2. in different countries. Our model may also be tested in terms of
whether age has an impact on these relationships.

5. DISCUSSION AND CONCLUSION

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