Abstract
Since the late 1990s in Korea, there have been many users of mobile devices, and we have extended leisure time. The terrestrial broadcasting market is very competitive because a lot of media has emerged dividing the market. Therefore, terrestrial broadcasters introduced terrestrial DMB (digital multimedia broadcasting) service to sustain audiences for the terrestrial broadcasting market and increase audience satisfaction. In Korea, telecommunication businesses are saturated, and wireless network operators, in their effort to diminish their revenue dependence on mobile voice services on one hand, and to recoup the huge investments made on third generation networks on the other, try to develop new services and business models such as DMB service. Consumer behavior research is critical toward accelerating the diffusion and consumer adoption of new media. However, consumer behavior in DMB has not yet been the subject of much research, though consumer adoption of DMB service is expanding rapidly in Korea. While there is much discussion on the emerging DMB service, there is still little evidence indicating what influences consumers in their decision to adopt DMB service and which specific features they would like included in the DMB service. This article examines behavioral intensions toward DMB service through consumer survey in Korea. More specifically, this study explores the specific using features of DMB service such as the motive for adoption, the satisfaction with DMB service, major using hours, and favorite contents. Additionally, this article investigates the favorite genre of consumers. This study is to explore the emerging marketing challenges in the field of DMB and provide direct managerial implications to the key-market players.
TopIntroduction
Since the late 1990s in Korea, there have been many users of mobile devices, and we have extended leisure time. The terrestrial broadcasting market is very competitive because a lot of media has emerged dividing the market. Therefore, terrestrial broadcasters introduced terrestrial DMB (digital multimedia broadcasting) service to sustain audiences for the terrestrial broadcasting market and increase audience satisfaction. In Korea, telecommunication businesses are saturated, and wireless network operators, in their effort to diminish their revenue dependence on mobile voice services on one hand, and to recoup the huge investments made on third generation networks on the other, try to develop new services and business models such as DMB service.
Consumer behavior research is critical toward accelerating the diffusion and consumer adoption of new media. However, consumer behavior in DMB has not yet been the subject of much research, though consumer adoption of DMB service is expanding rapidly in Korea.
While there is much discussion on the emerging DMB service, there is still little evidence indicating what influences consumers in their decision to adopt DMB service and which specific features they would like included in the DMB service.
This article examines behavioral intensions toward DMB service through consumer survey in Korea. More specifically, this study explores the specific using features of DMB service such as the motive for adoption, the satisfaction with DMB service, major using hours, and favorite contents. Additionally, this article investigates the favorite genre of consumers.
This study is to explore the emerging marketing challenges in the field of DMB and provide direct managerial implications to the key-market players.
TopBackground
DMB is defined as multimedia, personal media, and mobile broadcasting media, which receive television broadcasting, radio broadcasting, and data broadcasting using multi-channel for the purpose of mobile reception, and digital multimedia broadcasting that CD-leveled sound quality and video service is available and not only fixed, but also mobile reception is possible (KBC, 2003). DMB is based on digital broadcasting technology, and it is a new service that is able to receive the video, radio, and text of HD (high definition) level by max seven inches when we are moving. DMB is divided into Satellite DMB (i.e., S-DMB) and Terrestrial DMB (i.e., T-DMB) as categorizing Mobile Multimedia Broadcasting in Broadcasting Act in Korea (Table 1).
Table 1. The comparison between terrestrial DMB and satellite DMB
| Terrestrial DMB | Satellite DMB |
| Technology standard | Eureka-147
(DAB standard in Europe) | System E (CDM) |
| Networks | Terrestrial network | Satellite network + aid terrestrial network (Gap filter) |
| Frequency | Available frequency in capital territory. TV channel 8, 12 (12MHz) | Upload: 13.824-13.883GHZ (Ku band) Download: 2,630-2,655Mhz (25MHz) 12.21-12.23GHz (Ku band) |
| Available channels | Number of available channels is small
3-6 per broadcaster (24-30channels) | Number of available channels is numerous
Picture: max 14, Audio: 24, Data: 3 |
| Mobile reception | Available | Not Available |
| Service coverage | Local broadcasting (metropolitan area) | National broadcasting |
| Profit model | Free service based on the program commercial | Subscribed service based on contents |
| Retransmission of terrestrial B | Available | Not available |
| End device | *Car device + Portable device
*Combination Handset with cell phone | *Combination handset with cell phone first
*Extension to vehicle and portable use |
Key Terms in this Chapter
Killer Contents: Primary contents and favorite contents that play a leading role in the market industry.
Mobile Contents: The contents being watched by cell phones and PDAs. These contents are downloaded by device owner’s mobile device, and it is based on one-to-one and interactive communication as downloading their favorite genres such as movie, music, game and animation, and so forth.
Intermediate Advertisement: To interpose the advertisement into the programs on air. In Korea, terrestrial broadcasting is regulated to prohibit intermediate advertisement on air programs.
Business model: How the operators provide the products and services for consumers, how they explore the market and get profits from consumers. Business model is widely used when dotcom businesses are appeared and develop a unique Internet business model like Priceline.com and Amazon.com.
Terrestrial DMB (T-DMB): T-DMB service is based on DAB (digital audio vroadcasting), DAB standards, Eureka-147. It uses terrestrial networks and provides audience with not only good qualitative broadcasting, but also transmission of multimedia contents.
Data Broadcasting: This is to transmit not visual signal but data signal using data channel. Data broadcasting is the system that the receiving device automatically decodes and receiver directly gets the decoding data in the case of transmitting digital signal through broadcasting wave. This provides audiences with traffic information, travel information, stock, news, and the location information, expecting interactivity in the future.
Satellite DMB (S-DMB): S-DMB service is multimedia broadcasting service that provides high-quality A/V contents in high-speed mobile environments (100Km/h) through satellite network and aid network. Target terminal types are cellular phones, PDAs, and some kinds of dedicated portable devices. Eventually, two-way service can be supported.