Cross-Media Use in Electronic Media: The Role of Cable Television Web Sites in

Cable Television Network Branding and Viewership

Television Web sites have become an indispensable companion to television networks and stations. Almost all U.S. television networks have established their own Web sites. More than 78% of Web users have visited a television Web site within the past year (Schlosberg, 2000) and at-work television Web site traffic continues to grow (Fitzgerald, 2003). “Enhanced television” is a term used by the television industry to refer to the use of Internet features to improve (enhance) the viewing experience. Cable television programmers believe that the enhanced television features they provided on their Web sites can build viewer loyalty, increase retention, and attract new subscribers (Fahey, 2000; Griffin, 1996).

As a manifestation of the convergence between television and the Internet, television Web sites are expected to create a new world of hybrid media content encompassing e-commerce, information, games, music, movies, and advertising (Arlen, 2000; Baldwin, McVoy & Steinfeld, 1996). Cable television, in particular, seems to benefit the most from creating a presence on the Web with its niche programming and specialized content (Chan-Olmsted & Jung, 2001; Foley, 2000). A Cable Advertising Bureau report shows that cable television network subscribers have a higher percentage of use of their cable networks’ Web sites than broadcast networks. For example, the Food Network and ESPN have more than 30% of their subscribers visiting their Web sites during a recent three-month period (Fahey, 2000).

In light of the importance of television Web sites to cable television networks, this study explores the role of cable television Web sites on the branding and viewership of cable networks. Based on the theories of fandom cultivation and brand extension, it examines the role of television Web sites in facilitating audience’s loyalty and attracting new subscribers. The researchers surveyed a national random sample of U.S. Internet users on their uses of and responses to Web site features and compared the differences between basic and premium cable/satellite subscribers in their television Web site uses and experience. Such differentiation is important because advertising supports a majority of basic cable networks while subscription fees are the only source of revenue for premium cable networks. Premium cable subscribers’ willingness to pay for the content of premium cable networks shows that they demand program quality, accessibility, and choice. With a high turnover (churn) of premium cable subscriptions, premium cable networks can use their Web sites to offer additional values to current subscribers and provide easy sampling of program offerings to non-subscribers.

Significance of the Study

Subscriber loyalty is especially important for cable television networks because the majority of their revenues come from subscription fees. With the advent of 339 national cable networks in the United States (NCTA, 2004), the competition for cable subscribers and system operators’ support is fierce. The Web has become an important brand extension platform for cable networks to strengthen viewer loyalty and attract new subscribers.

From the perspective of the cable industry, the findings of this study might substantiate the strategic value of Web-based enhanced television features on branding and television commerce. Because the cost in developing and maintaining enhanced television features such as simulcasting and interactive real-time games on a Web site is high, it is necessary to take a closer look at the Web site’s returns on investment. Cable television networks may assume their Web sites can attract non-subscribers and their subscribers will use their Web sites to enhance their viewing experience. Yet how many television viewers are aware of these Website features and utilize these features on these Web sites is relatively unknown. In fact, an overly optimistic projection of audience usage and a me-too strategy often lead to excessive Web investments and result in consequent downsizing or adjustment of online business strategy. Already cable networks such as CNN and CNET announced many layoffs in their Internet operations.

The findings of this study also contribute to the assessment of the value and compatibility of specific cable networks from a cable system operator’s perspective. With a better understanding of the Internet platform and the audience usage of cable networks’ Web features, new cable networks can effectively promote their launch to the consumer and cable system operators. In addition, the results of this study can shed light on the usage patterns of enhanced television features, which are indicative of the nature and degree of the potential demand for interactive television, a new business product increasingly pursued by cable system operators and direct-to-home satellite service providers.

In essence, this study will add to the literature in the dynamics between television and the Internet, especially in this area of audience cross-media usage behavior and online content preferences in the context of an existing media industry. An examination of the possible discrepancy between cable networks’ assumptions on the value and usage of various features on their Web sites and the actual awareness and usage patterns of these online features by users not only contributes to our understanding of online audience behavior but also suggests to a more efficient and realistic approach to cable networks’ online business strategy.

The findings of this study might also add to the literature in brand management in the context of television industries. According to brand extension theory (Aaker & Keller, 1990), when a cable television Web site is seen by viewers as a close sister product of cable television network (an Internet version of the cable television brand), not a competing substitute (Ferguson & Perse, 2000), consumers will embrace the Internet presence, thus adding to the value of the cable brand. In an increasingly competitive marketplace where viewers are presented with abundant programming choices, an effective extension to the Internet is essential for a cable network in its attempt to develop a sustainable relationship with its audience and possible new ventures (Becker & Schoenbach, 1989; Schlosberg, 2000). Furthermore, there has been a shift in the thinking of leading Internet television companies towards using the Web to enhance the viewing experience, rather than using the television as merely an alternative Web access device (Thompson, 2000). The complementary role of a television Website and its value to the offline property has been discussed in previous literature (Chan-Olmsted & Park, 2000). The present study adds an empirical assessment of the relationship between enhanced Web features and brand loyalty in a narrowcasting industry where target marketing and niche audience appeals are essential to the firms’ success.

Literature Review

There are four major types of enhanced television features that enable the interaction between the viewer and the television station/network on the Web (Hurst, 2000): 1) Fan-based features, 2) game-based features, 3) information-based features, and 4) programming-based features. Fan-based features aim at creating fans for the shows and helping fans to get closer to the show or to the stars of the show such as background about the stars of the show. Using chat room or other sharing features, the network can facilitate the creation of a fan community. Game-based features are features that users can play-along or simulate the contestants’ experience in game shows such as ABC’s highly successful “Who Wants to be a Mmillionaire” Web site (Gruenwedel, 2000). Information-based features are background information that supplements news, sports, and weather forecasts and that facilitates customized information and deeper stories. Programming-based features are the devices through which users can pick and choose what to view such as television schedules, simulcasts, or video-on-demand services.

The expected strong growth of interactive television using cable set-top boxes in this decade (The Carmel Group, 2000; Swann, 2000) has led to heavy investment on Web sites and other interactive television technology development. Interactivity is believed to be the future of television and cable technology. Yet the benefit of interactivity is still more a marketer’s wish than a consumer’s reality (Ha & James, 1998; Lake, 2001). The content of interactive television is very similar to the enhanced television features already used in Web sites. In addition to the programming benefits, cable companies and programming networks alike put high hopes on the additional revenue that interactive shopping (television-commerce) can bring to them. They expect that viewers will become buyers by purchasing the products being featured in a television show (Fitzgerald, 2000; McKay, 2000).

Prior Research on television Web Sites and Enhanced Television

Consumer uses of television Web sites, though important in helping the television industry to determine their investment on Web sites and illustrate the potential consumer interest in interactive television, have been given little attention by researchers. Only Ha and Chan-Olmsted (2001) has used a rigorous Solomon’s four group experiment to assess the impact of enhanced television features on television brand loyalty and interest in television commerce. Their experiment on students found low interest in television commerce before and after the Web site exposure and such low interest does not differ among subjects with different enhanced television features awareness levels. Ha (2002) compared U.S. cable and broadcast network Web sites and proposed three different enhanced television strategy models that broadcast and cable networks can use as a new revenue source and a new way to attract and keep audiences. Her models stress the importance of segmenting the target audience of Web sites and selecting effective enhanced television features for each target audience segment.

Much of the attraction of enhanced television features lies in their ability to interact with the viewers, fulfilling communication needs before, during, and after watching a television program. For example, before an individual watches a television program, he or she can browse the schedule and featured shows on a Web site to make a viewing choice. During the television show, the individual can check statistics in sports games or play-along a game show with contestants. After watching the show, the individual can check for further background information about the topics covered in the show. Dennis Quinn, the Executive Vice-President of TBS, for example, viewed enhanced television as a tool to attract viewers’ attention and keep them engaged in programs, which ultimately increases time spent on viewing the programs (Foley, 2000; Robins, 2001).

One function that network executives treasure about the Internet is the large quantity of immediate feedback that viewers provide to programmers and the potential to improve ratings for the program. For example, CNN’s news site collected comments from the site visitors and used some of them in the stories. The perspectives of the viewers offered diverse viewpoints in the show. The ratings of the show almost doubled a year after the online editorial meeting format was launched. Another example of increased communication with viewers is the Food Network, which receives about 8,000 posts per week on its bulletin boards and about 1,500 e-mail messages each day (Whitney, 2001).

Interactivity is the crucial advantage that the Internet offers as a medium over other traditional media (Ries & Ries, 2000). The five dimensions of interactivity proposed by Ha and James (1998) provide a useful framework for analyzing the interactivity of a Web site and measuring a user’s online experience. The five dimensions they proposed were (a) playfulness, (b) choice, (c) connectedness, (d) information collection, and (e) reciprocal communication. To investigate the factor of interactivity in the context of Web visits, this study will examine the users’ perspective on interactivity by incorporating these five dimensions of interactivity.

Television Audience Behavior and Fandom Cultivation

When analyzing television audiences, we can broadly divide them into three groups based on the importance of watching television to the audiences: 1) the casual viewers who only see television as background noise and pay no or minimal effort in choosing a television program to watch; 2) the appointment viewers who are very selective in their television viewing but they are light viewers of television programs; and 3) the television fans who are very engaged in the television programs. These television fans can be considered as skilled audiences who are likely to be heavy viewers of the programs so that they can fully indulge themselves in those programs (Fiske, 1992). Cult shows such as Star Trek and the X-Files are able to generate a large group of loyal followers who purchase merchandise of the shows, and imitate the show characters’ behaviors and life-style (TV Guide, 2004). These television fans’ indulgence in the shows creates ample opportunities for licensed merchandise sales. Their loyalty ensures repeated exposure to the advertising messages shown in those programs. Networks see these fans as better consumers for the networks because they deliver more value to advertisers (Kerschbaumer, 2000). Essentially, television Web sites are attempting to increase the interest and relevance of the television programs to casual viewers and appointment viewers because the Web is the ideal medium to develop audience relationships.

Indeed, the features on television Web sites make the viewers more informed about what is going on in each program, and facilitate their participation in the production of programs (for example, writing feedback in chat rooms, responding to an online opinion poll, getting tickets to a show, etc.). Sometimes, they write to the producers to express their opinions about the shows in attempts to influence the outcome or content of a television show. Sometimes they collect information and artifacts so that they become experts of the shows. Their adoration of the television characters help to define their own identity and even help to establish their own aspirations (Abercrombie & Longhurst, 1998). The previously detached television viewers can now become enthusiastic viewers with the various interactive features on the Web sites.

One of the main reasons for networks to build presence on the Web is to develop brand loyalty of their viewers as a part of the network brand franchise (Ince, 2001), or to use the Web site to market their on-air programs (Chan-Olmsted, 2000; Kershbaumer, 2000). Nevertheless, to succeed in this brand building effort, it is essential that interactive features on the Web sites are actually being used by the visitors and that the visitors can realize the associated benefits of these features. In other words, the visitor must have a pleasant experience in using the Web site and leave with an impression that will give him or her top-of-mind awareness to return again (Kania, 2001).

Importance of Branding to Cable Television Networks

The study of branding and brand equity in the media industry is a relatively new phenomenon, even though it has been a very important marketing issue for packaged goods for more than two decades (Chan-Olmsted & Kim, 2001). Branding is the marketing strategy of giving value to the name of a product to distinguish itself from competitors and achieve a competitive differential advantage (Farquhar, 1991; Keller, 1993).

For the television industry, brand equity translates to audience loyalty for a television brand such as a particular broadcast network and creates a trend of audience polarization as suggested by Webster and Phalen (1997): Viewers become fans of a television show or the television network and continue to choose programs supplied by that network (Abercromie & Longhurst, 1998). Ideally, the fans of television networks or their shows will become advocates of the shows or the network, purchasing products either advertised or used by their favorite stars in the shows, hence realizing the commercial benefits of fandom in entertainment media (Fiske, 1992). Indeed fandom can be viewed as a television network’s brand asset. The more fans the network have, the higher its brand equity.

In this highly competitive and fragmented U.S. television market, cable networks must build their own brand identities and values to differentiate themselves from their competitors to gain carriage by cable system operators. Basic cable networks such as USA compete on a different platform than premium cable networks such as HBO. An advertising-supported basic cable network, as long as it wins carriage from cable or satellite service providers, can sell advertisers on its large subscriber base and receive both advertising and subscriber fee revenue. Premium cable networks, without advertising support and high turnover of subscription (churn), must win the subscribers’ hearts every month so that they will to continue to buy the premium cable service. Maintaining subscriber loyalty and attracting new subscribers to the premium service are the ways to create stable income for the cable networks. Because premium services are not accessible to non-subscribers (except the occasional preview session scheduled in cable/satellite television services), the Web sites of premium cable television networks play a even more important role as a sampling tool to non-subscribers and in cultivating subscriber relationships. Because the premium cable subscribers pay for the program service in full price, they expect high quality in programs. A strong brand is crucial to the success of any premium service. Any dissatisfaction will result in a discontinuation of the service.

Brand Extension Theory and Its Applications in Television Web Sites

Brand extension is the leveraging of a brand’s equity to its sister new products bearing the same brand name (Lane, 2000). Its theoretical premise is based on the affect transfer of the consumers of an established brand to the new products launched under the same brand. By using the same brand name, the new products can easily receive the support and trust from the consumers. Many marketing researchers use product attribute transfer (or categorization by forming a brand family category with similar attributes under the umbrella of the same brand name) in explaining the mechanism of brand leveraging (e.g., Joiner & Loken, 1998; Kim, Lavack & Smith, 2001). Other researchers such as Broniarcyzk and Alba (1994) study brand extensions as an affect transfer process. Affect is a concept comprising familiarity and likeability towards a brand. It is the special feeling toward an object, which characterizes the relationship between an object and its consumer (Grossberg, 1992). Aaker and Keller (1990) found that the more complementary the new product is to the originating brand, the more likely the consumer supports the brand extension. In this study, we subscribe to the notion that, because both brand familiarity and brand likeability are proven predictors of acceptance of brand extension (Lane & Jacobson 1995), the transfer of affect illustrates most succinctly the process in which brand extension can be successful.

Benefits and risks of brand extensions have been widely discussed in the marketing literature. Some of the major benefits presented are the carryover of brand benefits across products and markets, cost saving in a new product launch, and the consolidation of a brand’s position in the industry through extension of the product line with stronger customer and distributor loyalty (Mahajan, Rao & Srivastava, 1993). There are also risks involved in brand extension. The main concern is the damage to the established brand if the new products are not perceived as congruent in quality or image to the brand name (Milberg & Lawson, 1991). The extended brand may cannibalize the established brand if it is seen as a substitute or a competitor to the core brand (Roedder-John, Loken & Joiner 1998). Note that brand extension is a privilege only for established and well-liked brands that have acquired high brand equity (Lane & Jacobson, 1995).

Studies have shown that broadcast executives have yet to see their presence on the Web as a kind of brand extension. Chan-Olmsted and Kim (2001) found that only about one-third of television station general managers thought of the Internet as a tool for branding. Most local television stations’ Web sites were used to provide news and community services/information (Chan-Olmsted & Park, 2000). We believe that it is essential for a national television network to treat its Web site(s) from a brand extension perspective because 1) it uses the same brand name (e.g., NBC.com and ABC.com); 2) it offers in-depth information about selected network programs that are not typically available to the off-line television audience; 3) it often includes materials that are related but different from a broadcast network’s television products (e.g., customized news segments, program bloopers, etc.); and, 4) by featuring online links about a network’s products (programming), it encourages the audience to be more involved with a network’s programs through another medium. Such cross-medium (product) usage is a characteristic of brand extension where users consume the same company’s products in different formats.

Similar risks of brand extension also apply to a broadcast network’s Web site. As for all new products, the Web site may not be acceptable to the audience if its content is considered inferior or irrelevant to the viewers. The costs of product failures apply to the networks as well. If a network’s Web site is not used or is badly received by its viewers, and the network continues to supply such a failing product, it will not only waste the resources of the network but also possibly turn away prospective viewers who become disinterested in a network and its programs based on their negative experiences at the network site.

Research Hypotheses

Based on the fandom cultivation and branding theories as discussed above, we developed the following three sub-hypotheses on the positive prediction on viewer loyalty, new subscriber attraction, and subscriber maintenance from cable television Web site uses:

H1a: The more the use of cable television Web site features, the higher the viewer loyalty.

H1b: The more the use of cable television Web site features, the more likely the consumer becomes interested in a cable network.

H1c: The more the use of cable television Web sites, the more likely the consumer value a cable network, either as their favorite television network or by request via their television service provider to carry/keep the network.

Research Questions

In addition to the hypotheses, with the immense potential benefits of Web presence to cable networks and the difference between premium and basic cable networks, this study will also explore consumers’ use of cable television network Web site features and examine whether there are any differences in Web site feature use and experience between premium and basic cable subscribers. The role of television Web sites as brand extension will also be examined. Specifically, five research questions are explored in this study:

RQ1: Do premium cable subscribers differ from basic cable subscribers in their television Web site features usage?

RQ2: Do premium cable networks benefit more from enhanced television features in keeping subscribers than basic cable networks?

RQ3: Which television Web site features are the most predictive of the increase in viewer loyalty and attracting new subscribers?

RQ4: Do television Web sites function successfully as brand extension for cable television networks

both in terms of attracting new viewers to the networks and motivating them to buy

advertised products on the Web site (television commerce)?

RQ5: How do viewers evaluate their Web site experience and rate on the interactivity of the cable television Web sites?

Methods

A mail survey was sent out in late 2001 to obtain responses from a national sample of Internet users. The sampling frame was adult home users of the Internet who use their leisure time on the Internet to fulfill their information and entertainment needs based on the Metromail’s Behaviorbank respondent data base. Behaviorbank is a national consumer survey sent to 55 million households per year. Its mailing list is based on the national residential listing that Metromail collects and compiles for national use. It contains up-to-date mailing addresses and data are updated every three months. Because the survey has been conducted annually for seven years and Metromail is owned by Experian, the leading company in the United States to provide data base for credit information, the quality of the mailing list was deemed appropriate for the purpose of this study. The researchers selected a national random sample of 3000 self-reported Internet users from its 3 million data base. To avoid demographic bias, the same gender proportion as the U.S. census was selected in generating the final sample.

Procedures and Measurements of Variables

Each selected Internet user was mailed a 2-color, 8-page questionnaire booklet following Dillman’s (1978) total design method, with a cover letter explaining the purpose of the study and an attractive visual design to guide respondents. The questionnaire was divided into four main sections. The first section was about the respondent’s television service, Internet service, and on-demand media usage. The second section was about online experiences and general television viewing habits, television commerce experience, and their assessment of the effects of the Internet on their life. The third section was about cable television Web site usage and specific experience of enhanced television features of television Web sites. The last section was for collecting basic demographic information of the respondent.

In this study, the researchers measured the respondent’s rating of television Web site interactivity on five items on a 5-point Likert scale from strongly agree to strongly disagree to each interactivity dimension based on Ha and James (1998) and an overall rating of their most frequently used Web site. To measure the use of enhanced television features on Web sites, respondents were asked to mark their use of 21 listed enhanced features. Viewer loyalty was measured by agreement to three 5-point Likert scale statements: 1) “After visiting the site, I wanted to watch more often the shows featured on the Web site;” 2) “After visiting the site, I felt more involved in the shows featured on the Web site;” and 3)“After visiting the site, I felt more attached to the shows featured on the Web site.”

Representativeness of the sample is very crucial to inferring generalizability. To encourage participation, a one-dollar bill was sent along with the questionnaire as a token to all survey recipients. Such practice is very common in market research to boost response rate and expresses gratitude to the survey recipients for their time and effort. Survey recipients could choose to participate the survey on the Web rather than in print format. In this study, only 5.7% of the respondents (n=87) chose to answer the survey on the Web. Because of the low percentage, no further comparison was made between difference of the Web respondents and the paper version.

Response Rate

Initially, 3,000 questionnaires were sent out. Sixteen substitutes were sent after receiving returned packages with bad addresses. Another 22 undeliverable addresses were received after one month of the mailing and no substitute mailings were made. Therefore the non-response rate due to known undeliverable addresses was very low – only 1.2%. Four recipients of the questionnaire explicitly refused to participate by mailing back either the blank questionnaire or the one-dollar token in the postage paid return envelope. The effective response rate is 51% (1518/(3000-22)), which is deemed satisfactory compared to the generally low response rates of 15-30% in most national mail surveys.

Sample Profile

Although 1,518 questionnaires were returned to the researchers, only 1484 were usable because 34 respondents were under the age of 18, which made them ineligible for the study. Respondents are older than the general population as per the estimates of the 2000 U.S. Census. About 39% of the respondents are older than 55 years old. There are more female respondents than male respondents in this study (65% vs. 35%). More than half of the respondents have a college degree or above. Only one-fifth of the respondents are single and never married. The average household size is 2.45 persons, which is similar to the 2000 U.S. Census. Florida, California, and Pennsylvania are the three states with largest number of respondents. The median household income of the respondents is between $45,000 and 59,999. Although almost one-fifth of the respondents are professionals, respondents are highly diversified in their occupation, including business sales, administrators, technicians, factory workers, and a wide variety of other occupations. To examine if the higher proportion of female respondents might cause bias in the results, we compared differences between male and female respondents across key measures such as enhanced television features uses and television viewing habits and found no significant differences.

The resultant sample is also skewed toward older Internet users. To examine if higher proportion of older Internet users might cause difference in the findings, we ran a comparison of younger (under 45) and older respondents. Indeed, age makes a difference. Younger age respondents are significantly more likely to be television Web site users (t=4.15, df=1476, p < .01) and use the Internet for program information (t=4.92, df= 1474, p < .01) while older users are more likely to use traditional print media such as TV Guide for information (t=-3.83, df=1473, p < .01). On average, younger users use more Web site features (M=2.33, SD=2.87) than older users (M=1.32, SD=2.23). Nevertheless, age is not a factor in other television viewing behavior and whether consumers subscribe to premium or basic cable service.

Statistical Analysis

Apart from using descriptive statistics and significance tests to describe the characteristics of the sample’s use of enhanced television features and cable television viewing patterns, other multivariate analysis techniques were also used. Bivariate and simultaneous multiple regression analyses were used to test if the increase in the use of enhanced television features will make viewers more loyal such as watching the show more often and more attached to the show, and more likely to keep the subscription and try new subscription as programmers would like them to be. These analyses were also used to identify the enhanced television features that were most effective in predicting viewer loyalty and attracting new subscribers.

Results

Television Viewing Habits and Cable and Satellite Subscription

More than half of the respondents in this study are appointment television viewers. They read television guides before watching a program. Notably, more than one-third of the respondents see television as simply background noise for them with little interest in spending additional effort in choosing programs. There is a clear trend on the increasing role of the Internet in the watching of television programs. About 12% of the respondents either use the Internet to search for more information about television programs or look for alternatives.

Cable and satellite penetration is high among respondents. Only 10.7% are not cable or satellite service subscribers. Almost two-thirds are basic and expanded basic cable service subscribers. The rest are premium service subscribers. Cable subscribers outnumber satellite subscribers by about three-to-one (see Table 1).

Internet and Computer Usage

Premium cable subscribers exhibit the pattern of early innovation adopters. Not only are they more likely to own television-related technologies such as DVD players and big-screen television sets, they also are more experienced in using the Internet than basic cable subscribers -- almost one-third of them have 5 or more years’ experience in using the Internet. Nevertheless, premium cable subscribers do not have much higher broadband use than basic cable subscribers. Both basic and cable subscribers primarily use dial-up modems at home. Only 12.6% of cable subscribers use cable modems for Internet connection.

The types of Web sites that cable subscribers use most often are quite similar between premium and basic subscribers. News and information sites are the most commonly used sites. Search engines are a close second. General entertainment sites are not as commonly used as reported in the media. Only 7% of cable subscribers mentioned them as their most frequently used sites.

Online shopping is quite common among cable subscribers with more than half of the cable subscribers shopping online in the past 12 months. Basic and premium cable subscribers differ significantly in online shopping behavior. Premium cable subscribers are significantly more likely to make purchases online than basic cable subscribers. Among those who shopped online, premium cable subscribers spent almost two times more the amount than basic cable subscribers in online purchase, with an average of $417 in the past 12 months.

Predicting Viewer loyalty, Subscriber Loyalty and Attracting New Subscribers from Cable Television Web Site Feataure Usage

Despite the generally low reported use of enhanced television features (M=1.72 features, SD=2.53), the increase in enhanced television Web feature use is significantly positive in predicting viewer loyalty, subscriber loyalty, and attracting new subscribers for cable networks (see Table 2). A regression analysis shows that the number of enhanced television features use is a positive predictor of viewer loyalty, subscriber loyalty and attracting new subscribers. First, this study found that the use of enhanced television features positively predicts watching television shows featured on the Web site (b=.23, p < .01). They are also more likely to be attached to the television show when they used a lot of enhanced television features (b =.09 , p < .01). But the use of enhanced television has a weak positive significant effect in increasing audience’s involvement in the shows. Hence H1a that posits that the more the use of cable television Web site features, the more higher the viewer loyalty is supported. It should also be noted that a Cronbach’s Alpha reliability analysis was conducted on the viewer loyalty scale. The alpha is 0.53, showing that the three measures of loyalty have their own distinction in the eyes of the Internet user. Increase in the frequency of watching the show does not necessarily result in the increase in involvement in the shows.

H1b predicts that the more the use of cable television Web site features, the more likely the consumer becomes interested in a cable network. The findings of the study indeed shows that Internet users who use more enhanced television features are more likely to become interested in the network (b=.19, p < .01). Hence H1b is also supported.

H1c postulates that the more the use of cable television Web site features, the more likely the consumer value cable network (either as their favorite television network or by requesting their television service provider to carry/keep the network). This prediction is also supported in the findings. First, the network is more likely to become the respondent’s favorite cable network (b=.13, p < .01). Second, respondents in the study reported that would be more likely to request the cable operator to carry the network or keep the network if they used more of the television Web sites’ enhanced television features (b=.09, p < .01).

To cable system operators, an increase in enhanced television usage also has some positive effects. First, Internet users who use more enhanced television features are more likely to agree that they want to have high speed Internet access if their cable system operators can provide such service (b=.17,

p < .01). The increase in use of enhanced television also brings bright prospects on the use of interactive television that provides similar enhanced television features as those on television Web sites. Respondents who use more enhanced television features are much more likely to be willing to pay for the same features on television (b= .23, p < .01). Nevertheless, enhanced television use has no positive effect on creating value for cable or satellite service.

Use of Cable Television Web Sites

Almost half of cable subscribers did not visit any cable network’s Web site (Table 3). Nevertheless, quite a number of respondents recently visited a cable network’s Web site. Slightly more than 20% of the respondents visited cable networks’ Web sites in the past seven days. The usage pattern of cable television Web sites generally mirrors the popularity of the cable network. CNN is the most frequently watched cable network. Its Web site is also the most recently and frequently visited by the respondents. Nevertheless, many other most frequently watched cable networks do have corresponding leadership in the ranking of their Web site use. For example, A & E, which is the second most watched-cable network among respondents, ranked fourth in recent Web site visit. Discovery, which ranked fifth in the most frequently watched cable network, its Web site becomes the second most recently visited site. Very few cable network Web sites were reported as a most frequently visited cable network Web site. Almost 60% of cable subscribers do not have a most frequently visited cable network Web site.

Cross-promotion on television is the most important source for cable subscribers to know about the cable network’s Web site. Almost two-thirds of the cable subscriber respondents found the Web site for the first time from promotion of the Web site on television. Search engines and word of mouth recommendation are distant second and third sources. Web site reviews or print ads play almost no role in helping users to find the cable network’s Web site. Cable subscribers spend a considerable amount of time on their cable network’s Web site visit. In general, they spend an average of 10 minutes on each site visit. Premium cable subscribers are more likely than basic cable subscribers, to visit the same site many times, although the difference is not statistically significant. On average, they visited their most frequently visited television site 19 times in the past three months.

Use of Specific Television Web Site Features

Overall, television Web site feature use is low. As shown in Table 4, slightly more than half of the respondents did not use any of the enhanced television features of any television sites in the past three months. Because of the large number of non-television Web site visitors, we did a further analysis on the difference between television Web site visitors and non-television Web site visitors. As mentioned earlier, we found that non-television Web site visitors are significantly older, more likely to be in the 45+ age group (t=4.15, df=1476, p < .01). They are also more likely to be less experienced Internet users

(t=-3.49, df =1487, p <.01).

In addition, no one particular enhanced television feature stand out as the most popular feature used by most respondents. News and weather updates, the most commonly mentioned enhanced television feature, is only used by less than a quarter of the respondents. Background for news, polls, and program previews are the other three more commonly mentioned features. Use of the features is not in proportion to the popularity of those features used by the network sites. For example, in Ha (1992)’s study of leading broadcast and cable television Web sites, program previews were found in more than half of the sites. This study shows only 15% of visitors have used that feature. The higher frequency of news and weather update use may have reflected consumers’ inclusion of broadcast television station Web site use in responding to the question.

In terms of enhanced television feature usage, there are only a few significant differences found between premium cable subscribers and basic cable subscribers. Premium cable subscribers are much more likely than basic cable subscribers to join chatrooms or message boards, read episode synopses, use television guides or schedules, and participate in online polls (Table 4).

One may also wonder if television Web site feature uses and their effectiveness are program genre-specific. To examine if there is any genre-specific television Web site features, we broadly grouped the networks into news and entertainment-oriented to test for different frequency in use of specific enhanced features. Examples of news-oriented networks are CNN, ESPN, and Discovery. Examples of entertainment-oriented networks are Lifetime, HBO, and MTV. The results show that three features are significantly more likely to be used by information-oriented network Web site users:

1) background for news, 2)news/weather update, and 3) statistics and scores. Features such as gossip, chat room, program preview, episode synopsis, and schedules are more likely to be used by entertainment-oriented cable network Web site users. There are also many other features that are not genre-specific such as simulcast, video clips and third-party links.

As some of the television Web site features and other interactive features on the Web require download of additional software or plug-ins for the visitors, we probed for the interest of Internet users in downloading software to view certain features. Almost half of the respondents are not willing to go through the hassle of downloading software for viewing additional features.

Comparison between Basic and Premium Cable Networks in Enhanced Television Usage

Cable subscribers seldom visit premium networks’ Web sites. Although premium cable subscribers are significantly much more likely to visit a premium network Web site in the past three months, very few reported the premium network Web site as their most frequently visited site. Only 25 respondents said their most frequently visited cable network Web site is a premium channel such as HBO, Cinemax, Starz, or Showtime. As in other networks, premium network Web sites’ usage positively predicts viewer loyalty and subscriber attraction. Premium cable networks fare the same as basic cable networks in predicting higher viewer loyalty and attracting visitors to the network after visiting their Web sites.

Enhanced Television Features on Cable Network Web Sites Most Predictive of Viewer Loyalty and New Subscribers’ Interest in the Network

Comparatively speaking, enhanced television feature use is much more predictive of maintaining viewer loyalty than attracting new subscribers. Among the 22 enhanced television features examined in the study, there are 5 features that are most effective in facilitating viewer loyalty: 1) news/weather update, 2) background for news, 3)information about stars/gossips, 4) episode synopsis and 5) sweepstakes (Table 5). These five features can explain 28% of the variation in viewer loyalty (adjusted R²=0.28). But in attracting new subscribers (Table 6), none of enhanced television features is particularly effective and explains very little about the variation of becoming interested in a network or request a cable system operator to carry it (adjusted R²=0.03).

Role of Television Web Sites as Brand Extension

In general, the aggregate benefits of enhanced television feature usage is positive to cable networks by most standards. As shown in Table 7, the increase in the number of enhanced television feature use arouses interest in the network, increases the likelihood of buying products features in the show in the site, creates an urge for consumers to buy things on the site, and encourages watching shows that the viewer seldom or never watched prior to visiting the site. However, as a brand extension for the network brand, enhanced television feature usage has achieved its mission of motivating consumers to buy products and reach consumers whose cable system operators are not carrying the network. Nonetheless, increase in enhanced television feature use does not lead viewers to feel that the Web site content complements the television program. The Web site is not seen as an Internet brand of the network. Consistent with prior research of the Web as functional alternatives to television, respondents did not see the as Web site as a substitute to the television programs.

The use of enhanced television features also means good prospects on television commerce. First, respondents who use more enhanced television features report a higher urge to buy something featured on the site (b=.17, p < .01). Second, they would more likely buy the memorabilia items of the television network, television show, or television stars if more of them were available for purchase on the Web site (b=.13, p < .01).

Viewers’ Evaluation of the Enhanced Television Experience

In general, viewers find the cable network’s Web site they visit to be interesting. As shown in Table 8, premium cable subscribers have a more positive evaluation of their enhanced television experience than basic cable subscribers. They rate the quality of the site higher than the basic cable subscribers (83 vs 78 on a scale of 100). Among the five dimensions of interactivity, playfulness is the one that scored best among both basic and premium subscribers. A majority of premium subscribers report that they have fun and enjoy the time spent on the site. They also feel that there are many choices for them on the site (choice) and there are sufficient links (connectedness) and devices to collect their information (information collection). They also agree that they will miss the site if the cable network no longer provides it. However, viewers are unlikely to become active participants on the Web site by submitting comments or participating in events on the Web (reciprocal communication). Nonetheless, their Web site visit is also open to a new experience. Most of them disagree with the statement that they only visit the site to explore their favorite show or television star. This leaves room for development and promotion of other shows not currently watched by the visitor.

Discussion

The findings of the study indicate that the use of enhanced television features on cable television Web sites indeed increases viewer loyalty, keeps subscribers, and to a lesser extent, attracts new subscribers for cable networks. Premium cable networks, however, do not benefit more from enhanced television features in maintaining subscriber loyalty than basic cable networks.

Despite the benefits of enhanced television usage on increasing viewer loyalty, keeping subscribers, and attracting new subscribers, the low number of Internet users using these features does not make the current television Web site effort very cost-effective. The tremendous resources put into creating and maintaining a good interactive cable network Web site do not yield enough users that fully utilize the features at least at this stage of the Web development. The lack of promotion of Web sites may explain the discrepancy between the rankings in the number of viewers of a cable network and the number of its Web site’s visitors. Some cable networks, such as CNN and Discovery, are more aggressive in promoting their Web sites than other cable networks. Almost every program on these networks has promotional spots or scrollers on the television screen encouraging viewers to visit the site. As shown in this study, because of the importance of the promotion on television as the primary source of information for viewers to try a television Web site, television networks should maximize viewers’ awareness and interest in the Web site. They can make it a routine to display the Web site address and point out interesting enhanced television features that audiences can relate to the programs they watch.

It is interesting to note that news and weather updates, a general service, are the strongest enhanced television feature in predicting viewer loyalty. It is consistent with previous content analyses of television station Web sites on the dominance of informational content services (e.g., Chan-Olmsted & Kim, 2001; Ha, 2002). Chatrooms and other high audience involvement features are not so useful in predicting viewer loyalty. In terms of estimating the possibility of enhanced television features to change viewers from passive audiences to active participants of television programs, we can examine the popularity of the various enhanced television features and their respective effects on viewer loyalty. The results of this study indicate that the success and appeal of enhanced television features lie in their customized features and supplemental information, rather than active involvement in the development of or participation in the program. Such audience inertia still applies in online media where the primary communication need is to satisfy their own information and entertainment needs, rather than to communicate with the media content providers as discussed in Ha & James (1998).

Although many Internet users did not see the Web site of the network as an Internet brand or as a complement to the network’s programs, television Web sites have partially succeeded its brand extension mission. Television Web sites have broadened their reach to users who did not have the networks available on their cable systems. About 20% of the most frequently visited sites are for cable networks not carried by the respondent’s cable system operators. Some Internet users also become interested in a certain cable network as a result of its cross-promotion on the Internet. In addition, the increase in the use of enhanced television correlates positively with an increase in the demand for broadband access. Most importantly, as Web sites are not seen as substitutes of the network’s programs, they will not cannibalize the viewership, but rather add or consolidate viewers for networks. The additional revenue of television commerce that network Web sites may deliver is also promising based on the results of the study. The more viewers use the features, the more they feel the urge to buy something on the site. The data also show that when more products related to a show are available, Internet users are more likely to buy the products.

Such positive results of enhanced television feature use on television commerce interest shown in this study are contrary to the earlier experiment conducted by Ha and Chan-Olmsted (2001). In that study, subjects did not show an increased interest in television commerce after exposure to the broadcast network’s Web site and their awareness of the enhanced television features has no effect on their viewer loyalty. There are several differences between this study and the earlier experiment. That experiment was a one-time exposure of the Web site and the study only measured awareness level, not actual usage, of enhanced television features. The student sample in the experiment also differed from the general public of this study. Perhaps, the most important difference is that the experiment tried to establish an immediate cause and effect relationship between the exposure to Web sites and interest in television commerce. But the results of the current study are largely correlational and cumulative. At best, the current survey is able to predict viewer loyalty and new subscriber interest in a network by the enhanced television feature usage. Another alternative explanation is that the television Web site usage in this study is a self-selection phenomenon. Those who are already loyal to television networks/programs may be the ones who are using the enhanced television features. Those that do not use these features are the casual television viewers. Indeed respondents who spent more effort in their television viewing are much more likely to use television Web site features (r=.36, p < .01). The challenge that this study presents to cable networks is that they have to entice the casual viewers and nurture their loyalty to the network by getting them interested in their Web sites, which should in turn, raise their interest in the programs.

The users’ evaluation of their Web site experience shows that the experience is generally positive, but not overwhelmingly so. While the interactivity rating is good and they generally report some characteristics of the “flow experience” in terms of feeling in control and totally absorbed during the site visit, they are not fully concentrated. Many reported awareness of distractions when visiting the site. The fact that almost half of the users are unwilling to download additional software is an issue for the Web designers to contemplate.

Conclusion

This study of cable television Web site use points to an imminent need for cable networks to increase their efforts in promoting their networks’ Web sites and educate their audiences on the features available on their Web sites. Currently, enhanced television features are underutilized and many viewers have not visited cable network sites. This is especially important for premium cable networks because premium subscribers seldom visit their sites. The potential positive benefits of enhanced television features on Web sites shown in this study justify the investment in the cable network Web sites. Although the benefits are not overwhelmingly positive at this early stage of providing enhanced television features, the generally positive evaluation of Web site experience shows that television Web sites are something consumers value. Consumers will miss the Web sites if networks discontinue them. It is especially important for new cable networks to utilize this medium to showcase and promote their networks when they are not currently available to the market. They have to advertise on major Web sites such as popular search engines and provide useful services to Web visitors and television viewers in general to attract visitors. After visiting the site, they may become interested in the network. By building more direct contact with the consumers using their Web sites, cable networks can provide stronger evidence of consumer demand for the cable networks and provide better support to cable system operators.

For cable marketers, this study underscores the importance of premium cable subscribers both in terms of innovation adoption and also their greater appreciation of enhanced television features. Premium cable subscribers are still largely narrowband users. They are the prime target for cable broadband service. The enhanced television features are excellent tools to nurture the demand for broadband service among premium cable subscribers as shown in the study. Their indication of willingness to pay for the enhanced television services on their television sets is another untapped gold mine for digital cable and interactive television services. Cable system operators, cable television networks, and other electronics manufacturers should work closely to offer bundled services or package deals to attract premium cable subscribers. By so doing, premium cable subscribers can form a critical mass of interactive television users that set the trend for interactive television and other on-demand media services.

Finally, the use of cable television Web sites could lead to cross-media usage of the cable networks. The positive role of a cable television Web site as a branding tool to build viewership indicates the importance of using a pull and push strategy in promoting cable network viewership. The cable television Web sites can pull in audiences by providing services not available on television. After consuming the site, the audiences are then pushed to view the cable network for a lean back television viewing experience, equipped with a better understanding of the programs. Such synergy will be fundamental to a healthy coexistence for media with both online and offline presence.

Limitations and Suggestions for Future Research

This study of consumer media Web site use opens a wide area for further research in cross-media use in this age of media convergence. Large-scale surveys like this study are limited to reported use of media Web sites. Using panels for measuring use can illuminate the actual media Web site use and link it with television use. Research companies such as Nielsen are in the best position to link people meter data with its Netratings Internet user panel on actual cross-media use. Yet it is also important to develop ways to measure cumulative effect of such cross-media usage for longer time periods. Pre-test/post-test experimental designs will be suitable for studying impulse shopping behavior in media sites. The preliminary analysis of non-television Web site users illustrate that older users tend to rely on traditional print media for program information. Utilizing the synergy of the Internet and the television medium is the next big task If television networks plan to nurture the next generation of television users, The data of this study also show that some television Web site features are genre-specific. Future studies can further explore the relationship between program genres and Web site feature offerings that best fit the program genres. Researchers can analyze the use of individual programs or television show sites to identify the most effective features to improve their Web site offering. Indeed the future study of media use should address the dynamics of cross-media use (print and electronic media) in audience behavior and the effects of such cross-media use in content creation and selection in the media industry.

Table 1

Cable/Satellite Subscription Services of Respondent Sample

Total Respondents

(N=1484)

_____________________________________________________________________________________

No cable or satellite subscription 10.7%

Cable – basic only 21.2%

Satellite television – basic only 11.5%

Cable – expanded basic 29.6%

Cable – premium 22.1%

Satellite – premium 16.7%

Other multichannel services 0.9%

______________________________________________________________________________

Table 2

Predicting Viewer Loyalty, Subscriber Loyalty and New Subscriber Attraction from Television Web Site Feature Use (N=508)

B SE B b _____________________________________________________________________________________

A. Viewer loyalty

Watch shows featured in the site more often .50 .092 .23*

More involved in the shows .06 .050 .05*

More attached to the shows .05 .022 .09*

B. Subscriber loyalty

My favorite cable network .18 .060 .13*

Request to carry the network/keep the network .16 .080 .09*

C. New subscriber attraction

Became interested in the network .08 .012 .19*

D. Additional service demand for cable system operators

Urge to buy something featured on the site .08 .019 .17*

Want to have high speed Internet access .10 .025 .17*

Willing to pay same features on television .49 .093 .23*

More products, probably buy them .07 .023 .12*

Cable good value for money -.06 .089 .03

Note. *p < .01

Table 3

Most Recent Visit To Cable Network Web Sites

Basic Cable Premium Cable Total

Subscribers Subscribers Subscribers

(N=672) (N=498) (N=1170)

Never visited any such site 48.4% 44.0% 46.5%

Less than 3 days ago 14.9% 15.9% 15.3%

Three days to 7 days ago 6.8% 8.4% 7.5%

No more than 2 weeks ago 6.2% 7.1% 6.5%

Two weeks to no more than 4 5.8% 6.1% 5.9%

weeks ago

Four weeks to no more than 3 5.1% 7.5% 6.1%

months ago

Three months ago or more 12.1% 11.1% 11.7%

Note. Missing N=95

Table 4

Television Web Site Feature Uses

Basic Cable Premium Cable Total

Enhanced Television Subscribers Subscribers Subscribers

Features (n=667) (n=496) (n=1163)

News/weather update 21.4% 25.2% 23.0%

Background for news 17.1% 16.3% 16.8%

Polls* 13.5% 18.5% 15.6%

Program preview 12.7% 16.7% 14.4%

TV guide/schedules* 10.0% 13.9% 11.7%

Information about stars 8.8% 12.3% 10.3%

Play-along/games 8.6% 8.9% 8.7%

Quiz/trivia 6.7% 8.8% 7.6%

Video clip archive 7.4% 7.3% 7.3%

List of upcoming guests 6.9% 6.3% 6.7%

Sweepstakes 5.8% 7.1% 6.4%

Episode synopsis* 4.1% 8.7% 6.0%

E-mail link 4.8% 7.3% 5.9%

Statistics 5.5% 6.5% 5.9%

Purchase/Shopping Cart 5.1% 5.3% 5.2%

Program transcript 3.5% 4.7% 4.0%

Chatroom or message boards* 2.7% 5.5% 3.9%

Third-party links 3.3% 4.1% 3.6%

Simulcast 2.1% 3.3% 2.6%

Original Web programming 2.6% 2.6% 2.6%

Other 0.9% 2.2% 1.5%

None of the features 56.9% 52.3% 55.0%

________________________________________________________________________

Note. The enhanced television features are multiple response items. Missing N=102

* Difference statistically significant at p <.05.
Table 5.

Summary of Simultaneous Regression Analysis for Top 5 Enhanced Features in Predicting Viewer Loyalty (watch shows more often, more involved, more attached)(N=508)

B SE B b

News/weather update 2.77 .38 .26*

Background for news 2.30 .41 .19*

Information about stars/gossips 2.50 .47 .18*

Episode Synopsis 3.17 .58 .18*

Sweepstakes 2.68 .55 .16*

______________________________________________________________________________

Note. Adjusted R²=0.28. Only those who reported visiting a cable network’s Web site within the past three months are included.

* p < .01.

Table 6

Summary of Simultaneous Regression Analysis for Top 5 Enhanced Features in Predicting Cable Network Web Sites New Subscriber Interest in the Network (N=-508)

B SE B b

Chatroom .67 .28 0.10

TV Guide .42 .19 0.10

Program Preview .33 .18 0.09

E-mail link .41 .24 0.08

Sweepstakes .33 .22 0.07

_____________________________________________________________________________________

Note. Adjusted R²=0.03. Only those who reported visiting cable network’s Web site are included.

Table 7

Television Web Sites As Brand Extension in Attracting New Viewers and Motivating Them to Buy Advertised Products Advertised Products (T-Commerce) on the Web Sites (N=508)

B SE B b

Probably buy products featured in the shows on the site .07 .023 0.13*

Felt an urge to buy something on the site .08 .019 0.17 *

Want to have broadband access .10 .025 0.17*

The Web site is the Internet brand of the network .05. .30 0.07

The Web site complements the network’s program .05 .035 0.05

The Web site can substitute for viewing the television program -.02 .002 -0.04 ____________________________________________________________________________________

Note: Only those who reported visiting cable network’s Web site are included.

* p < .01

Table 8

Viewers’ Evaluation of Web Site Interactivity and Their “Enhanced Television” Experience on the Web

_________________________________________________________________________________

Mean Score

Basic Cable Premium Cable Total

Subscribers Subscribers Subscribers

(N=280) (N=228) (N=508)

Have fun and enjoyed the time spent on site* 3.50 3.92 3.69

There are many choices for me on the site* 3.70 4.10 3.89

Sufficient internal links* 3.52 3.85 3.67

Sufficient external links 3.25 3.41 3.32

Devices to collect information 3.10 3.00 3.06

Will submit comments or participate 1.96 2.24 2.09

Felt in control 3.25 3.36 3.30

Was aware of the distractions 3.10 3.14 3.12

Was totally absorbed* 3.26 3.57 3.40

Made me curious and want to learn more 3.36 3.53 3.44

Site was interesting 3.76 3.89 3.82

Only explored favorite show/stars 2.40 2.57 2.48

Will miss the Web site if not have it 3.12 3.23 3.17

Quality rating of the Web site* 77.90 82.80 79.9

(out of 100 points)

Note. Ratings on a 5- point scale from strongly agree (5) to strongly disagree (1).

*Significantly different at p < .05.

Only those who reported visiting cable network’s Web site are included.

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