Volume 5, Issue 7, July – 2020 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

The Effect of User Experience on

Customer Satisfaction on Netflix
Streaming Services in Indonesia
Mario Alberto Jose Martins1, Setyo Riyanto2
Magister Management Universitas Mercubuana Jakarta, Associate Proffesor Magister Management Mercubuana
Indonesia1 Jakarta, Indonesia2

Abstract:- Technology has become increasingly In this research, the researcher wants to examine the
sophisticated, all forms offered in the development of extent of the audience of online streaming media in this
very cutting-edge technology. Current technology is case user experience, are they very satisfied with the
supported by a strong internet network base that quality and service offerings in Netflix Streaming media.
presents various kinds of creativity. One that gets
attention is the widespread use of online streaming II. THEORETICAL BASIS
media as a basis in an online streaming media streaming
plan that is Netflix. This research will discuss where the A. User Experience
user experience of Netflix Online Streaming Media Based on research (Schrepp et al., 2017) studied and
Customer Satisfaction. The results of this study were grouped that user experience is with six sub-variables
drawn from 150 respondents who are always actively namely attractiveness, perspicuity, efficiency, and
using Netflix online streaming media. This research dependability, stimulation and novelty is the main scale in
only focused on the Jakarta area, Indonesia, which is measuring user experience for interactive products. The
the largest city in Indonesia. user experience can evaluate products that cover the
application area to find out how to measure the business in
Keywords:- Streaming Services, Netflix, User Experience, terms of service.
User Satisfaction.
The user experience that needs to be emulated is to
I. INTRODUCTION meet the needs of the right customers without having to
bother or interfere with other activities. Next come
The development of online streaming media, where simplicity and elegance that produces a product that is
customers are facilitated with an all-round service "online" pleasant to have, a pleasure to use. True user experience
makes everything easy and practical. With the presence of can go beyond giving customers what they want what they
streaming services that use an internet basis and can be have said or providing a checklist feature. To achieve a
accessed on various types of platforms (Smart TV, high-quality user experience in a company offers, it must
Computer, Tablets, and smartphones) and anywhere and be a merging of services between various disciplines,
anytime provides an experience for every loyal customer including engineering, marketing, graphic and industrial
who enjoys streaming services for activity and design, and interface design (Rezaldy & Telkom, 2019).
entertainment.
According to (Raharjo & Japarianto, 2017) User
One of the online streaming media that has become a Experience is learning that comes from a person's
trend in the country is Netflix is becoming a hot experience of an object which then becomes one's self-
conversation in Indonesia. Imagine, the streaming media reflection on that object. In the Journal (Kharis et al., 2019)
platform from the United States continues to reap the pros User Experience covers aspects of user perception,
and cons with various attitudes shown by the Government behavior, even things that involve user emotions.
ranging from the Minister of Communication and Understanding of user experience or user experience is
Information Johny G Plate, Minister of Finance Sri often interpreted as the achievement of a product or service
Mulyani, to the Minister of Education Nadiem Makarim. that is considered successful or failed by its users
(Mardalena Hutabarat, 2014).
Netflix was a DVD rental company that emerged
since 1997 that was founded by Reed Hastings and Marc Users not only choice because they feel comfortable
Randolph in Scotts Valley, California. Along with the to use but according to their needs (Muhammad et al.,
development of technology, Netflix has also turned into a 2016). User Experience can show the perceived ease of use
streaming movie service. In the third quarter of 2019, the and efficiency through user experience in using the system
number of Netflix paid subscribers worldwide reached 158 (Kusuma et al., 2016). User Experience will have an impact
million. At the same time, free trial customers number 5.5 on user behavior if it is in line with what is expected by the
million. customer in enjoying online streaming shows, in this case,
Netflix User Experience. The better the quality of Netflix's

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Volume 5, Issue 7, July – 2020 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
streaming media services will improve the memorable User III. RESEARCH METHODOLOGY
Experience for the users of the service.
A. Population and Sample
B. Customer Satisfaction The population in this study is Netflix online
Companies that use customer experience realize that streaming users. The sampling technique used in this study
the customer buys more than not just a product and service, is convenience sampling. Samples taken in this study were
but the customer buys what the customer will do for 150 respondents.
feelings that are important to himself (Rezaldy & Telkom,
2019). Customer satisfaction provides value for customers Collecting data in this study sourced from primary
(customer value). Low quality will cause dissatisfaction data is data created by researchers to solve research
with customers, not only customers who feel the service but problems. Primary data were obtained directly from
also have an impact on others (Aryani & Rosinta, 2010). respondents. Primary data obtained from the object of
Consumer satisfaction with service companies is defined as research through direct and indirect observation, as well as
a condition where consumer expectations of service are by filling out the questionnaire using Google forms provided
the reality received about services provided to consumers to respondents Netflix users.
(Panjaitan & Yuliati, 2016). According to (Setyo Riyanto,
2018) Implementation is a process in which strategies and B. Analysis Techniques
policies are put into action through the development of The analytical method used in this study uses SEM
programs, budgets, and procedures. And Netflix has made (Structural Equation Model). This research uses the SEM
that change and is one of the biggest online streaming method because it can display the observed concepts and
media today. can explain the overall model. Using SEM requires
computer software (computer software) in this study will
 Framework use Amos version 2.6. SEM has two parts. The structural
model (Structural Model) and SEM model testing can be
divided into two main parts, namely, measurement model
and structural model.

C. Object of Research
Netflix is a digital streaming service provider founded
by Reed Hastings and software executive Marc Randolph
in 1997. Initially, Netflix provided DVD rental and sales
services through the netflix.com website. In 1999, Netflix
began providing unlimited DVD rental services with a
monthly subscription system at a low price. In a year,
Netflix introduced a personalized movie recommendation
service system. This system uses the value given by each
Netflix member to predict DVD movie choices, which is
similar to the current rating.

Source: (Rezaldy & Telkom, 2019) In 2007, Netflix began to introduce streaming
Fig 1:- framework services. This service allows its customers to be able to
watch live TV shows and movies on their personal
H1: Attractiveness has a significant effect on customer computers. Until 2010, several electronics companies were
satisfaction on Netflix application users. partnered with Netflix to become partners. The electronics
H2: Perspicuity has a significant effect on customer companies include Xbox 360, Blu-ray players, TV
satisfaction on Netflix application users. decoders, PS3, TV companies, Apple devices, and many
H3: Efficiency has a significant effect on customer others. It makes Netflix customers have many streaming
satisfaction on Netflix users. media choices that make it easy for them to enjoy Netflix
H4: Dependability has a significant effect on customer services.
satisfaction, partially on Netflix application users.
H5: Stimulation has a significant effect on customer In 2011, Netflix was launched outside the United
satisfaction on Netflix users. States, starting in the Latin American and Caribbean
H6: Novelty has a significant effect on customer regions. Access to Netflix's streaming service was extended
satisfaction on Netflix users. to European countries two years later. In 2012, Netflix won
its first Primetime Emmy Engineering Award. A year later,
Netflix launched the original program, which is a program
that is produced by Netflix. Many of his original shows
won several TV awards and prestigious films, from the
Emmy Primetime to the Oscar awards
(https://media.netflix.com/en/about-netflix, n.d.)

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ISSN No:-2456-2165
In January 2016, Netflix Co-founder and CEO Reed IV. DISCUSSION
Hastings announced the expansion of the Netflix streaming
service to reach 130 countries, including Indonesia. Reed A. Test Validity and Reliability
Hastings announced this when he was on the stage of the Construct validity refers to the extent to which a
2016 Consumer Electronics Show (CES) in Las Vegas, collection of measured variables represents the theoretical
United State (BAGUS PRASETIYO, 2016). latent construct those variables are designed to live.

Netflix takes a winding road in Indonesia. The Psychometric measurement theory means
challenge faced by Netflix at the time was that access measurement models should be specified as congeneric.
blocked by Telkom Group, the largest internet service Standardized loading estimates should be 0.5 or higher, and
provider in Indonesia. It has caused many people in ideally, 0.7 or higher, to point convergent validity. AVE
Indonesia who have difficulty accessing Netflix services should be 0.5 or greater, to suggest adequate convergent
(ATMOKO, 2020). validity. AVE estimates for two factors also should be
greater, than the square of the correlation between the two
On July 7, 2020, Telkom Group officially unblocked factors to supply evidence of discriminant validity.
it after Netflix obeyed the Self Regulatory Code for Video Construct reliability should be 0.7 or higher to point
Subscription on Demand Industry in ASEAN regulations. It adequate convergence or internal consistency (Hair et al.,
is a rule not to display prohibited content in the form of 2018).
content that violates copyright, contains child pornography,
terrorism, and violates Intellectual Property Rights (IPR) as Reliability refers to a measure of the degree to which
well as discrediting certain groups of people. (Jannah, the indicators of a latent construct are internally consistent
2020) with each other. The indicators of highly reliable constructs
are highly interrelated, indicating that they all seem to
measure the same thing. Individual item reliability can be
computed as 1.0 minus the measurement error variance.
Note that high reliability is necessary, but not sufficient,
condition for validity.

 Validity and Reliability Testing Table

Latent Variable Indicator Loading Factor Conclusion AVE>0,5 CR>0,7 Conclusion

X1 --> X1.1 0,804 Valid
X1 --> X1.2 0,778 Valid
Attractiveness X1 --> X1.3 0,722 Valid
0,546 0,878 Reliable
(X1) X1 --> X1.4 0,640 Valid
X1 --> X1.5 0,736 Valid
X1 --> X1.6 0,744 Valid
X2 --> X2.1 0,734 Valid
X2 --> X2.2 0,783 Valid
Perspicuity (X2) 0,623 0,868 Reliable
X2 --> X2.3 0,812 Valid
X2 --> X2.4 0,824 Valid
X3 --> X3.1 0,792 Valid
Efficiency X3 --> X3.2 0,788 Valid
0,616 0,865 Reliable
(X3) X3 --> X3.3 0,795 Valid
X3 --> X3.4 0,765 Valid
X4 --> X4.1 0,791 Valid
Dependibility X4 --> X4.2 0,767 Valid
0,611 0,862 Reliable
(X4) X4 --> X4.3 0,817 Valid
X4 --> X4.4 0,749 Valid
X5 --> X5.1 0,778 Valid
Stimulation X5 --> X5.2 0,733 Valid
0,647 0,879 Reliable
(X5) X5 --> X5.3 0,817 Valid
X5 --> X5.4 0,882 Valid
X6 --> X6.1 0,760 Valid
Novelty
X6 --> X6.2 0,758 Valid 0,593 0,853 Reliable
(X6)
X6 --> X6.3 0,781 Valid

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Volume 5, Issue 7, July – 2020 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
X6 --> X6.4 0,780 Valid
Y --> Y.1 0,857 Valid
Customer Y --> Y.2 0,771 Valid
Satisfaction 0,670 0,890 Reliable
Y --> Y.3 0,797 Valid
(Y)
Y --> Y.4 0,846 Valid
Table 1
Source: SEM Amos 2.6 Application

B. The goodness of Fit Measurement Analysis of the overall model will determine the level
Goodness-of-fit (GOF) is a measure that indicating of significance by looking at the value of p. The estimated
how well a specified model structure reproduces the parameter values show results that are by the hypothesis
covariance matrix among the indicator variables, and the level of significance p <0.05 then the hypothesis
alternatively, the accuracy of a proposed theory(Hair et al., proposed means supported data or in other words accepted,
2018). however, if the estimated value of the parameter shows the
results do not match the hypothesis and the significance
SEM includes a measurement model that specifies the level p> 0.05 then the hypothesis proposed means
theoretical correspondence rules between measured and unsupported data or rejected. The results of testing the
latent variables (constructs). The measurement model hypothesis in the overall model can be seen in the table
enables the computation of a proxy measure of the below(Hair et al., 2018).
construct to represent any single independent or dependent
construct with multiple items. By testing the fit of the
theoretical measurement model against reality, one can
assess the degree of measurement error present.

The model during this study was declared fit

supported the GOF table obtained from the SEM Amos 26
Application.

 Goodness Of Fit (GOF) Measurement Table

The
GOF Match Level calculation Explanation
results
CMIN/df ≤ 5.00
3,473
CMIN/DF (good fit) Good fit
RMSEA ≤ 0.08
(good fit) 0.08 ≤
RMSEA RMSEA ≤ 0.10 0,129 Poor Fit
(marginal fit)
RMSEA ≥ 0.10
(poor fit)
CFI≥ 0.90 (good Source: SEM Amos 2.6 Application
fit) Fig 2:- Structural Equation Model Diagram
0.80 ≤ CFI ≤
CFI 0.90 (marginal 0,702 Good fit  Hypothesis Testing Table
fit)
CFI ≤ 0.80 (poor Hypothesis Path Estimate P Conclusion
fit)
Table 2 1 X1 - Y 0,141 0,011 Accepted
Source: SEM Amos 2.6 Application 2 X2 - Y 0,187 *** Accepted

C. Hypothesis Testing in Structural Model (Structural 3 X3 - Y 0,144 0,003 Accepted

Model Fit) 4 X4 - Y 0,204 *** Accepted
A structural theory is a conceptual representation of
the structural relationships among constructs. The structural 5 X5 - Y 0,255 *** Accepted
model component represents the proposed theory with a set 6 X6 - Y 0,373 *** Accepted
of structural equations specifying what things are related or
Table 3
not related to each other(Hair et al., 2018).
Source: SEM Amos 2.6 Application

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Volume 5, Issue 7, July – 2020 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
All of the existing hypotheses, from H1 to H6 all can [7]. Kharis, Santosa, P. I., & Winarno, W. W. (2019).
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