INTERNET PENETRATION AND THE ADOPTION OF TELEVISION STREAMING AMONG STAKEHOLDERS
CHAPTER ONE
INTRODUCTION
1.1 Background to
the Study
Advancement in computer technology has led to many
innovations especially with the advent of the Internet. The proliferation of the Internet is changing different sectors
in the world, the media industry inclusive. One of the innovative applications of the Internet to the media industry
is television streaming- the practice by which television stations provide media contents online. Technological
convergence as defined by Okoro (2006) is the “the continuous development in media technology aimed at
bringing about a blend in technologies in the process of message delivery” p. 4. The implication of this is the
meeting point between computer technologies and television leading to the formation of television streaming.
Television streaming as described by Gerbarg and Noam (2003) is the “quintessential digital convergence
medium putting together television, telecommunications, the Internet, computer applications” p. xxi.
Before the advent of the Internet, television stations were limited by geographical boundaries and by signal
strength of airwaves. For television viewers also, the feedback mechanism was either limited or delayed because
not all the audiences could give their views or opinions about happenings around them. In addition, limited
television programmes were available for television audiences, at a stipulated time. Thus, television audiences
are often saddled with limited choice of television programmes and there was no alternative means of watching a
missed programme. However, one major benefit of television streaming to media operators is that it creates a
forum to a wider reach of audience because they are not restrained by on-air signal or coverage. As such,
television stations’ contents that are streamed online can be viewed across geographical boundaries. To the
audience, they also stand to benefit from watching television programmes on the Internet. The innovation of
television streaming aid the audiences to watch their favourite television programmes regardless of wherever they
are in the world as long as they are connected to the Internet. It also reduces the frequency by which audiences
miss television programmes because they can now access missed favourite programmes using Video on Demand
(VoD) television viewing on the Internet. With a laptop or a mobile phone, audience can connect to a television
station’s website in order to watch programmes as television programmes can now be viewed on the move and
this elevates television to a mobile medium status.
Ikpe and Olise (2010) and Livingstone (2003) observed that with television streaming, the scope of television
coverage is enhanced; the geographical signal limitation of a television station is eliminated as it paves way for a
broader and wider audience cutting across geographical boundaries. The need for the adoption of television
streaming is imperative as the media audience is shifting from the traditional media to the new media due to its
feedback mechanism which enhances interactivity among media professionals and media audiences. For a
smooth streaming experience however, Mirza and Beltrán (2014) argued that high-speed broadband technologies
should be in place to enhance individual consumption. For this to be achieved, streaming media applications are
compressed to be compatible with the end users’ Internet connectivity. This implies that streaming services take
into consideration the availability and quality of Internet connectivity that the end users possess.
Vliet (2002) defined Internet as a global network through which millions of users exchange data with series of
networks associated with an organisation. The Internet, as suggested by Pratama and Al-Shaikh (2012) is also
the “symbol of technological era” p. 2. Popularity of the Internet in the 21st century has not only brought
innovations to the media industry but to every sector of the economy. The Internet technology can be said to have
changed the face of broadcasting with the conception of radio and television streaming. In a bid to tap into this
technological era of Internet and to follow audience shift to the new media, broadcasters began to stream their
contents online. For the audiences to view television programmes in a synchronised fashion on the Internet, it is
required that there should be ubiquitous and affordable broadband (Gerbarg & Noam, 2003). While this may be
taken for granted in the developed countries of the West for example, it however raises questions on
infrastructures that are in place to enhance Internet access and connectivity in a country such as Nigeria.
Internet penetration, which largely can determine the extensive utilisation of the total broadband capacity available
refers to the proportion of people that have access to the Internet and those that do not have access to the
Internet. In addition, it measures the growth of Internet access in a given geographical region. Statistics have
shown a rise in the number of people that access the Internet over the span of 15 years in Nigeria. For example,
Internet World Stats (2016); Internet Society (2016) and Premium Times (2016) reported that Internet users as at
August 2016 have increased to 93,524,398 on both Global System for Mobile communications (GSM) and Code
Division Multiple Access (CDMA) networks. Internet users can thus access the Internet either using the mobile
Internet platform or the fixed Internet known as the CDMA provided by telecommunication services. Internet users
with existing Internet infrastructures can now access the Internet through computer devices such as smart phone,
other mobile phones that have Internet features- tablets and laptops.
Studies have however shown that demographic characteristics of respondents such as age, education, income,
employment status, gender and marital status determine the use of the Internet and the adoption of television
streaming. This led to the summation of Penard, Poussing, Mukoko, Tamokwe (2013); Rhee and Kim (2004);
Yang and Kang (2006) that the young, educated and employed are major users of the Internet because this class
of people are expected to have the necessary computer skills needed for Internet operation and the adoption of
television streaming. Television streaming adopters to an extent must also possess the technical skills needed in
operating computer devices before they can opt for watching television programmes online. Viard and
Economides (2011) also argued that Internet content will be more attractive to those that are educated and can
read in English because most Internet contents are in English language. The demographic characteristics have
led to what is called digital divide- “the gap between those who have effective access to and exploit the potential
of IT and those who do not” (Niehaves & Plattfaut, 2014, p. 2).
The Internet Society, Nigeria Chapter (2016) and West (2015) also disclosed that some of the factors affecting
Internet use in Nigeria are lack of technical know-how, cost of acquiring computer devices, high cost of Internet
subscription and negative disposition arising from security related issues such as cyber crimes when using the
Internet. Income level as argued by West (2015) are barriers in the use of the Internet and except low level
income earners have access to free products and cheap devices, they may not have the privilege of accessing
the Internet. On the other hand, expensive devices and high data cost can militate against Internet penetration
among high income earners and where data subscription are available, it may not be used for television streaming
as a result of the high amount of data needed to watch live programmes on the Internet.
1.2 Statement of the Problem
With rising globalization, stiff competition and technological development, the television industry is not new to
changes; it is witnessing transition from analogue to digital and more recently it is undergoing the transformation
from delivery of contents on-air to delivery via the Internet. The growth of the Internet over the years paved way
for the innovation of delivering television content via the Internet. Statistics published by Nigerian Communications
Commission (NCC), (2016) showed that from year 2000 when Internet began to gain ground in Nigeria, Internet
users have increased from 78,740 to 93,524,398 in August 2016. This increase has also placed Nigeria as the
largest Internet user in Africa, (Abikoye & Salihu, 2016). This is evident as out 182, 202, 000 of Nigerian residents,
about half (52.1%) of the population have access to the Internet as at August 2016. With the expansion of Internet
access however, there are inadequate Internet infrastructure to sustain the continual growth of Internet access
thereby leading to traffic congestion on existing Internet infrastructure; a negative implication for Internet
broadband penetration. Internet broadband penetration as at October 2016 according to Executive Vice Chairman
of the Nigerian Communications Commission (NCC), Prof. Umar Danbatta, it is projected that Internet broadband
penetration would be at 30 percent by 2018. As a bid to further increase broadband access, Globacom (GLO)
network in April 2016 and MTN Nigeria in October 2016 joined other Internet service providers such as Smile
Communications, Spectranet, IPNX and Swift networks that have rolled out the 4G LTE technology in Nigeria.
Presently, Globacom covers only subscribers in Lagos State and MTN covers Lagos, Abuja and Port Harcourt.
While this is a notable development in Internet access, the 4G wireless technology has little significance on
Internet broadband penetration until 4G can spread across the country.
In addition, National Broadband Plan (2013) acknowledged that the high cost of Internet access remains a
fundamental reason why Internet is not available in every home. One of the reasons given for the high cost of
Internet data is a result of monopoly in the telecommunication industry and regulation of data prices by NCC. But
deregulation of the data prices by the NCC in October 2015 and removal of data floor price led telecommunication
industries to set their own data prices. This has resulted in the reduction of data subscription cost. Airtel Nigeria
was the first to reduce its cost of data subscription in May 2016, subsequently, other competitors followed suit. For
instance, in May 2016 a thousand naira could buy more data than it could in 2015. Though this is a landmark
achievement, large amount of data which is proportionally expensive is still needed to watch television
programmes. Furthermore, the proposed communication tax in the heat of the present economic recession in
Nigeria has implication for broadband access, cost of data subscription and television streaming.
While 4G wireless network is expected to provide wireless download speeds of about 1Gbps in local area network
(LAN) and 100 Mbps in wide area network (WAN) which is about 260 times greater than 3G wireless networks
(Akintoye, 2013) 4G network is not evenly distributed. These existing challenges of Internet penetration can
mitigate the extent to which television stations can actively get involved in live streaming of programmes because
it is paramount for television operators to have access to steady broadband facilities. In addition, with low speed
Internet connectivity, poor existing Internet infrastructure and digital divide in rural and urban centers (ITU, 2015;
Mirza and Beltrán, 2014; Maciejewski, Fischerand Roginska, 2014), television stations may find it challenging
adopting television streaming. As such, how readily accessible are television live and on-demand streams to
Internet users and to what extent do respondents have the necessary computer literacy skills needed to adopt
television streaming? With audience shift to new media technologies as a result of its interactivity and enhanced
feedback, do they find television streaming easy to adopt and useful especially with the size of data subscription
which is proportionally costly to watch television programmes online? Past studies on new technology often
approach it from the economic and technological side while consumers’ needs which determine the success of
television streaming is often neglected (Yang & Kang, 2006). More so, studies have shown that demography of
audience such as income, age, gender and educational status go a long way in influencing Internet usage.
These questions demand answers because television viewing is shifting from the confines of the sitting room to
anywhere as long as the viewer is connected to the Internet (ITU, 2015). While developing countries are still
striving to adopt television streaming which is Internet driven, non- ubiquitous broadband Internet connectivity will
negatively impact smooth access to television streaming of programmes which may further discourage Internet
users from watching television programmes on television stations’ websites. Based on the above, the researcher
studied the influence of Internet penetration on the adoption of Television Streaming among stakeholders in
selected states in South-West Nigeria.
1.3 Objective of the Study
The general objective of this study was to find out the influence of Internet penetration on the adoption of
television streaming among stakeholders in South-West Nigeria. The specific objectives are to:
- determine the level of Internet penetration in South-West Nigeria;
- determine the extent to which residents in South-West Nigeria watch television programmes on television
stations’ websites; - examine the extent to which computer literacy skills promote residents’ adoption of television streaming in
South-West Nigeria; - determine the extent to which perceived ease of use facilitates residents’ adoption of television streaming in
South-West Nigeria; - examine the extent to which Ease of use promote residents’ adoption of television streaming in South-West
Nigeria; - explore the challenges militating against residents’ adoption of television streaming in South-West Nigeria;
- establish the extent to which selected television stations in South-West Nigeria have the appropriate
technology to develop live streams; - ascertain the frequency of uploads of daily live or on-demand programmes on the Internet by selected
television stations in South-West Nigeria; - find out challenges militating against television stations’ adoption of television streaming in South-West
Nigeria; - find out the significant difference in adoption of television streaming by demographic characteristics across
residents in South-West Nigeria
1.4 Research Questions
- What is the level of Internet penetration in South-West Nigeria?
- What is the extent to which residents in South-West Nigeria watch television programmes on television
stations’ websites? - What is the extent to which computer literacy skills promote residents’ adoption of television streaming in
South-West Nigeria? - To what extent does perceived ease of use facilitates residents’ adoption of television streaming in SouthWest Nigeria?
- How does Ease of use promote residents’ adoption of television streaming in South-West Nigeria?
- What are the challenges militating against residents’ adoption of television streaming in South-West
Nigeria? - To what extent do selected television stations in South-West Nigeria have the appropriate technology to
develop live streams? - How often do selected television stations in South-West Nigeria upload their daily programmes live on the
Internet? - What are the challenges militating against television stations’ adoption of television streaming in South-West
Nigeria? - What is the significant difference in adoption of television streaming by demographic characteristics across
residents in South-West Nigeria?
1.5 Hypotheses
H1 Availability of Internet Infrastructure significantly influences residents’ adoption of television streaming
H2 Access to the Internet significantly influences the adoption of television streaming by residents in South-West
Nigeria
H3 Broadband Penetration significantly influences adoption of television streaming among residents in SouthWest Nigeria
H4 The cost of data subscription significantly influences residents’ adoption of television streaming
H5 Internet Penetration when moderated by attitude of residents in South-West Nigeria significantly influences
their adoption of television streaming
H6 Demographic characteristics significantly influence residents’ adoption of television streaming
H7 Computer literacy skills significantly influences residents’ adoption of television streaming in South-West
Nigeria.
H8 Perceived Usefulness significantly influences respondents’ adoption of television streaming in South-West
Nigeria.
H9 Ease of Use significantly influences residents’ adoption of television streaming in South-West Nigeria.
H10There is a significant difference in adoption of television streaming by demographic characteristics across
residents in South-West Nigeria.
1.6 Significance of the Study
This study examined the extent to which Internet Penetration influenced the adoption of television streaming
among stakeholders in South-West Nigeria. Television in Nigeria is recently gaining ground and as such, few
studies have measured the extent to which Internet Penetration influences the adoption of television streaming.
As such, the findings of this study would therefore be of immense benefits to the researcher as it would enable the
researcher to expand the frontier of research in the field of television streaming. It would also provide empirical
data for other researchers upon which further studies on New Media and Information and Communication
Technologies in Nigeria could be conducted. Data from this study would also enrich the data bank of International
Telecommunications Union (ITU) regarding Internet penetration in South-West Nigeria. This would provide ITU
with statistical figures that could be used in ascertaining Internet penetration in Nigeria.
This study would be beneficial to Nigerian Communications Commission (NCC), National Broadcasting
Commission and Internet Service Providers as it would show the extent to which Internet access have penetrated
the studied areas. At the same time, the findings from the study would provide data on the challenges
stakeholders encounter in accessing the Internet and reveal the extent to which the demographic characteristics
of respondents influences the Internet penetration. This information would therefore aid NCC and Internet Service
Providers on the need to improve on existing communication policies that will improve Internet infrastructure in the
country. This in turn would enhance Internet access, pave way for high speed Internet connectivity and reduce the
cost of Internet access.
It would also help television stations to know the access and adoption pattern of television streaming among
Internet users. It would also help television stations to know how study participants view the concept of television
streaming. Findings would also help television stations to discover the challenges that Internet users encounters
while trying to view streamed contents on their websites and to improve on those areas in order to pave way for a
good streaming experience.
1.7 Scope of the Study
This study on influence of Internet Penetration on the adoption of Television Streaming among stakeholders had
South-West Nigeria as its focus. The stakeholders involved in this study were residents aged 18 and above and
television stations in South-West. Ages 18 years and above were considered for this study because it is the
standard age for adulthood and independence to a large extent. In addition, in the cultural context of Nigeria,
children below the age of 18 years are largely dependent and under control mechanisms that are put in place by
parents and guardians to regulate what they watch.
Out of the six states in South-West Nigeria, two states were selected using the simple random sampling
technique. On the other hand, three television stations were selected from three states in South-West- one federal
government owned television station, one state owned and one privately owned television station. This study was
from January 2016 to January 2017. This is to ensure that literature consulted is in tandem and within the period
in which data was collected.
South-West Nigeria was chosen for this study because fibre optics cables that supply West Africa Aggregation of
broadband infrastructure is in the West Coast of Nigeria. This suggests that the West have access to
infrastructure than other geographical zones and thus Internet access is expected to be more prominent in the West.
1.8 Operational Definition of Terms
Internet Penetration: Internet Penetration refers to the spread of Internet. It means the extent to which study
participants in South-West Nigeria have access to the Internet. Internet Penetration however is a latent variable
as it is made up of several other variables and as such cannot be measured directly. As such, Internet
Penetration which is the independent variable was determined by
X= Independent variable
X1= the number of study participants that access the Internet,
X2= availability of Internet Infrastructure
X3= Broadband Internet connection
X4= Cost of Access
Adoption: In this context, adoption is the dependent variable and is classified into two. First is adoption on the
part of television stations which is the use of television streaming as a means of distributing media content to
viewers via the Internet. This was measured by the frequency in which television stations upload their television
programmes on the Internet. Secondly, for South-West residents who are Internet users, adoption refers to
viewing television programmes on selected television stations via the Internet. This was measured by the rate at
which Internet users go to television stations’ websites to watch their favourite programmes.
Influence: This refers to the extent to which Internet penetration determine stakeholders’ adoption of television
streaming. This was measured using stakeholders’ access to Internet infrastructure, frequency of television
stations’ streaming and frequency of audiences’ adoption of television streaming.
Residents: These are people from 18 years and above living in the selected streets across the selected wards.
Television Streaming: This involves the ability of selected terrestrial television stations to make their
programmes available live or on demand online to their viewers. This is a manifest variable and as such was
measured directly. Television streaming also refers to Internet television and used interchangeably in the context
of this study.
Stakeholders: Stakeholders for the purpose of this study are residents in South-West Nigeria, Chief Engineers in
NTA Ibadan, Television Continental and Lagos State Television.
Internet Infrastructure: This refers to the existing Internet equipment that are in place to enhance Internet
access, such as fibre optics cables, Internet routers, wireless spectrum, electricity and computer devices. This
was also measured through the channels with which respondents gained access to the Internet, either through
wireless telephone technology (3G or 4G on GSM, Wi-Fi) and Wired Telephone technology such as cable Internet
connection.
Broadband Penetration: This refers to the availability of high speed Internet access that enables Internet users
to view television programmes on television stations websites in real time at a minimum speed of 1.5 Mbit/s”.
Attitude: This is the perception and disposition of respondents towards television streaming. It is a moderating
variable in this context and was measured by physical reasons such as lack of interest about television streaming,
beliefs, likeness and readiness to adopt television streaming.
Access to the Internet: This means ways through which Internet is made available to the respondents. This was
measured using individual or organisational subscription patterns- different types of bouquet data subscription
available on selected telecommunication Internet service providers and the frequency of subscription by
respondents. This was measured daily, weekly, monthly and by the size of data bundle subscribed to.
Metropolitan: These are Local Government areas that are urban in nature with characteristics and features of
urban settlement such as high concentration of small and medium scale enterprises. They are industrialised by
nature. The residents of these local government areas have the likelihood to possess the technological know-how
to operate computer devices and have essential social services.
Non Metropolitan: These are Local Government areas that by nature have less urban settlements and have two
or more of the following characteristics: core traditional areas, dilapidated buildings, poor sanitation, inadequate
health facilities, slum settlements, high level of illiteracy and low level of socio-economic activities.
INTERNET PENETRATION AND THE ADOPTION OF TELEVISION STREAMING AMONG STAKEHOLDERS