Journal of Distribution Science (유통과학연구)

Korea Distribution Science Association (한국유통과학회)
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Netflix in Indonesia: Influential Factors on Customer Engagement among Millennials' Subscribers

  • AUDITYA, Annisa (Magister of Communication Department, Strategic Marketing Communication, BINUS University) ;
  • HIDAYAT, Z. (Magister of Communication Department, Strategic Marketing Communication, BINUS University)
  • Received : 2020.08.22
  • Accepted : 2021.01.05
  • Published : 2021.01.30
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Abstract

Purpose: This study is to explore how Netflix Customers' Engagement was influenced by Instagram Content, Perceived Price, Exclusivity, and Motivation in the context of Media Streaming and the role of Willingness to Subscribe as the mediating variable. This study underlines millennial's willingness to engage and the form of engagement. Research design, data, and methodology: The data for this research were collected from 100 Netflix's Millennials subscribers who follow @netflixid Instagram. All the results were analyzed and verified using SEM-PLS. Results: Research findings indicated that Willingness to Subscribe, Exclusivity, Motivation, and Instagram Content positively influenced Customer Engagement among Netflix millennials' subscribers. In contrast, Perceived Price had a negative effect on Customer Engagement. Conclusions: As a consequence, the exclusivity that Netflix offers to its audience by a recommendation algorithm has been proven to increase the engagement. This study also disclosed that the most definite form of positive engagement shown by Netflix millennials' subscribers is a behavioral aspect, where they positively recommend Netflix (word of mouth). The study findings can be a reference for the media streaming industry in their efforts to strengthen the engagement with their customers, especially the millennials, and provide knowledge about consumer behavior in digital technology.

Keywords

1. Introduction

Technology in the late 20th and early 21st century has been developed rapidly. Many changes occur from time to time, including consumer trends. One of which is a shift in the audience in consuming media. Especially after the increasing popularity of alternative media and internet usage (Logan, 2011). The development of computer technology and network infrastructure has created internet usage (Rizan et al., 2020).

Society born in the 1980s was defined by growing up with digital technologies (Nguyen & Bang, 2019). The study of television versus the new media is mainly evolving into schemes. One of them is that the TV network's dominance has been weakened in this digital era (Cha & Kwon, 2018). That is why alternative media become one of the factors transforming the audience in watching movies and TV Series. Alternative media is a digital platform that provides video streaming services. Unlike television, this technology gives consumers the freedom to choose the movies they want to watch anytime and anywhere because all they need is a gadget and an internet connection.

The pioneer in this service, Netflix, has become the most premium player among other Video On Demand (VOD) services and began to acquire local content creators to lead the market in Indonesia. A report from Statista.com stated that this most well-known global video service from America already has 192.95 million paying streaming subscribers worldwide, including Indonesia, in the second quarter of 2020 (Watson, 2020). Netflix also gained 7.2 million subscribers overseas for the period between April and June, when social life became restricted amid the spread of the novel coronavirus (Zeitchik, 2020).

Technology has become a part of the millennium generation. The Millennials were eager to integrate it into Gen's daily lives, primarily when the consumers use mobile devices to connect with their brands through the internet (Nguyen & Bang, 2019). That makes binge-watching and Netflix have now become a unity, especially for young audiences. The millennium generation feels bored and assumes that the traditional programming schedule does not match the digital age lifestyle. With internet access that is now readily available, they have a new habit of watching movies using various digital technologies, especially VOD through Netflix (Matrix, 2014). However, because of this shift in habits, competition in the industry has become increasingly high, especially with the emergence of various other VOD platforms. That is why industry players compete in marketing strategies so that the audience chooses their platform as a channel to watch videos, increase customer engagement, and win the competition.

Van Doorn et al. (2010) described Customer Engagement as a customer behavior concept towards a brand or company beyond the purchase. Customer Engagement is also a significant factor in improving the quality of relationships between brands and consumers, affecting business success. In this digital age, the internet has influenced and increased customer interactivity (Sawhney et al., 2005). Mollen and Wilson (2010) describe that online customer engagement is a cognitive and affective commitment to brand and customer relationships through digital media to show brand value. In this digital era, customers were supported by cutting-edge technology to influence other people through information sharing (beyond recommendation) on blogs, online forums, and social networks (Choi et al., 2019).

Within the rise of technology, understanding consumer behavior is becoming more complicated because of frequent changes in cultural, social, and economic aspects (Potluri et al., 2014). Especially in the presence of many other similar VOD services, it is necessary to know customers' motivation to watch Netflix and the reasons they are willing to pay for Netflix subscriptions. Then the customers engage with the brand because the presence of technology is changing the flow of consumer behavior patterns (Indahingwati, 2019).

Social media has become a mainstream platform that can connect one-third of the world's human population (Dolan et al., 2016). The most in an online community has been developed to be essential media because it allows users to have new human relations and strengthen existing human relations (Jung et al., 2014). One of the strategies carried out by Netflix Indonesia in increasing customer engagement towards brands is the content on Instagram. On the other hand, price is one of the essential factors that influence consumers to buy a product or service. Price has a relative effect: some consumers are sensitive to price, whereas others do not consider the price when making a purchase decision. Netflix also offers exclusive and desirable premium programming, especially live coverage of popular and original movies that are only exclusively available for subscribers to drive consumer choice. Motivation influences how the audience can be selective and active in finding and using media, provides subsequent satisfaction and shapes expectations about media content. What motivation makes a millennial to subscribe to Netflix will be seen from the research in this paper.

Many previous studies have concentrated on the organization's perspective, but this paper examines the consumer perspective, especially the millennial generation. Based on previous research, customer trust factors have a significant influence on customer engagement (Islam & Rahman, 2016). Meanwhile, this study tries to look at factors that influence millennials' willingness to engage online in reality and the form of engagement. By empirical approach, this study examined the effect of Instagram Content, Perceived Price, Motivation, Exclusivity, and the role of Willingness to Subscribe as the mediating variable on Netflix Customer Engagement among millennials subscribers in Indonesia.

A framework was developed to support this research's aim, and the questionnaires were distributed to 100 Netflix's Millennials subscribers. All the respondents' answers were verified using Structural Equation Modeling-Partial Least Square (SEM-PLS).

This study found that customer engagement was positively influenced by Instagram content, exclusivity, motivation, and willingness to subscribe. Meanwhile, the perceived price did not have a significant influence on customer engagement. The exclusivity that Netflix provides to the audience through a recommendation algorithm has been proven to influence engagement because millennials tend to watch in the media streaming platform, which provides movies suitable for their self-preference. This research also discovers that the most potent form of positive engagement shown by Netflix's millennials subscribers is behavioral. They positively recommend Netflix to their families and friends (word of mouth). The study findings can be a reference for the media streaming industry in their efforts to strengthen the engagement with their customers, especially the millennials, and provide knowledge about consumer behavior in digital technology.

2. Theoretical Background and Literature Review

2.1. Theoretical Background

2.1.1. New Media Theory

The occurrence of digital media diffusion from the telecommunications and information technology sectors in the fast 1990s has led to the study of media and communication being defined by new investigation objects (Littlejohn & Foss, 2009). New media is a variety of transformations and dislocations of existing media, a medium whose use is unlike most mainstream media—no longer waiting for specific times to watch a show, no need to buy a newspaper or listen to the radio certain times. All that is needed is a more straightforward tool with sufficient information that is always spreading without a time limit (Lister et al., 2008).

2.1.2. Uses and Gratification Theory

When the audience used to look for entertainment by watching shows on television, with the advent of the internet and the rapid development of New Media, the audience has more choices to choose the desired media according to their needs. Everyone has a favorite media and has a reason to choose it. The description of this phenomenon is explained in the theory of Uses and Gratification.

This theory states that audiences are actively looking for specific media and specific content to produce absolute satisfaction. In Uses and Gratification, audiences are seen as active because they can evaluate and choose the media to achieve communication goals (West & Turner, 2018). Uses and gratification is a theory that characterizes active audience theoretical approaches in communication studies. This means that the audience is aware of their understanding and realizes their needs (Rubenking, 2018).

2.1.3. The Second Self: Computers and The Human Spirit

The main argument of The Second Self's argument is that computers' arrival has taken the human relationship with technology to a new level. Relationships with computers can influence people's conceptions of themselves, their jobs, their relationships with other people, and how they think about social processes. These can become significant and new cultural forms (Turkle, 2005).

The internet is changing the way we see ourselves and our relationships. Following this theory, online life has become a social location for self-projection and exploration (Turkle, 2005). This theory asserts that we tend to look for ways to see ourselves. The computer is the new mirror, the first psychological machine that becomes one of the provocations for self-reflection.

2.2. Literature Review

2.2.1. Customer Engagement

Customer Engagement is a component of relationship marketing that can be applied in marketing strategies to attract, build, and maintain relationships with customers and potential customers. Customer Engagement is also illustrated by the intensity of one's participation to carry out activities of the brand offer. It is a construct of behavior that can go beyond purchase behavior. The approach in this research provides a framework for various customer behavior, which includes retention and cross-buying, sales and transaction metrics, word-of-mouth, customer recommendations and referrals, blogging and web postings, and other behavioral matters that can affect the company and the brand itself (Vivek et al., 2012).

Customers engaged with a brand will be happy to recommend a product to others and even provide added value by providing user-generated content. Positive Customer Engagement encompasses actions that have positive consequences in the short and long term, both financial and non-financial terms for a brand. Some consumer actions, such as Word of Mouth Activity, Blogging, and Online Review, are examples of positive Customer Engagement. Another example is recommending brands to friends and family (Van Doorn et al., 2010).

2.2.2. Media Streaming

Streaming media generally refers to platforms that display video content available on the internet and can be accessed online. Also known as Video on Demand. Online provide video content in films, TV series, and usergenerated content (Bondad-Brown et al., 2012).

The advantage of doing an online video subscription is getting various content from various content creators around the world. Then consumers having access to ondemand content, where the content can be watched as many times as possible. This distribution system resulted in a more personal and interactive experience, tailoring the content based on the target audience and making it more exclusive. There are no commercial breaks, having the ease of sharing content through online channels. With the emergence of online video, there is a change in audience behavior from passive viewing to active, content-producing, and content-sharing audiences, mainly because of the ease of sharing content through online channels (Bondad-Brown et al., 2012). In order to watch or share the movie and TV series content, audience need gadgets, namely personal computers (PCs), laptops, tablets, or smartphones that connected to the internet.

2.2.3. Netflix

Net Flix Inc. is a media streaming company from America (Given et al., 2012). Founded on August 29, 1998, in California by Reed Hastings and Marc Randolph. Netflix specializes in Video On Demand (VOD) services. Netflix is free of advertisements, and subscribers can decide what movies they want to enjoy anytime and anywhere.

2.2.4. Millennials

The millennials are also known as the Y or Z generation (Kim & Yang, 2020), was classified as born from 1981 to early 2000. Millennials are eager to adopt new digital devices and information systems. They usually access the internet from multiple locations and devices (Rissanen & Luoma-Aho, 2016).

2.2.5. Instagram Content

Social media has become a mainstream platform that can connect one-third of the world's human population (Dolan et al., 2016). It means that social media becomes a social place for people worldwide, anytime, anywhere (Nguyen & Bang, 2019). Nowadays, social media has become an e-space for social activism and support, emotional expression, news updating, and friendship development (Truong, 2018). It is an automated social environment that enables people to communicate with a group of users, especially people with a common interest (Kim et al., 2014). Social media's interactivity has made consumers transform from passive to active participants, where the social media platform eventually becomes an ideal forum for a brand's products. Through social media, companies can actively promote their new products, brand information, and upcoming events (Cha & Lyu, 2019). Moreover, social media is an effective communication platform to promote their brands or products, ultimately leading to purchase (Myoung-Jin, 2020).

Instagram is an online photo-sharing application that has proven that images can speak louder than words and has gained the highest popularity, with over 300 million active monthly users. This platform's simplicity and creativity allow users to share and know others' lives through photos and allow celebrities and commercial brands to build engagement with their consumers (Lee et al., 2015). Sharing or posting daily activities on Instagram has become a trend because it is a popular platform for customers to share their experiences and opinions (LE & VO, 2020). This platform can facilitate consumers' participation actively in the on it is a communication process.

Considering that users can access their mobile virtually anywhere and anytime, this unique characteristic of Instagram, together with the visual-oriented culture mentioned above, can create different user behavior and motivation compared to other social media. Compared to several types of contents in social media, informational content has a lower level of engagement compared to entertaining content (Cvijikj & Michahelles, 2013).

2.2.6. Perceived Price

Liou et al. (2015) stated that the price level/perceived price influences a consumer. When the price of a good or service is too high compared to the benefits obtained from the goods or services, it will affect the consumer's action in adopting products or services. Perceived price is everything given and sacrificed by consumers to get products or services, and consumers will feel satisfied with the feasible price. Consumers are very rational when it comes to judging what benefits they wish to get from buying products or services they pay for (Al-Mamun & Rahman, 2014).

Chiang and Jang (2007) also stated that price perception is one of the considerations in decision making where consumers tend to assess the value of a product or service compared to the price offered before deciding on a purchase. The more reasonable the price, the higher the desire of consumers to buy these products and services.

2.2.7. Exclusivity

In the modern economic industry, consumers use various platforms, including distribution channels that provide premium and high-quality content to access films, music, and other media and content that suit them and their needs. It means that each online platform competes to make a difference and increase exclusivity to compete (Hagiu & Lee, 2011).

To win the competition, corporations should have a differentiation strategy and service to survive and grow under the competitive, segmented market through satisfying consumer needs (Lee et al., 2012). A personalized recommendation system that can provide appropriate content or services based on each user's preference (Cho et al., 2020) can be one of the differentiation strategies. Moreover, presenting content that can only be accessed exclusively by subscribers makes exclusivity a competitive strategy in broadcasting and new media industries. Access to premium content is also a big competition among paid TVs. Because of online video providers' exclusivity, consumers benefit from access to quality content at competitive prices and expand the market provider (Weeds, 2015).

2.2.8. Motivation

Motivation is a psychological thing that motivates a person to choose and use media and form expectations for the media content. People's motivations affect the power they use to develop attitudes and drive attention to facts that are consistent with the beliefs (Bondad-Brown et al., 2012).

Rubenking et al. (2018) stated that 'Entertainment' and 'to have fun' are the common motivation related to Uses and Gratification. The expectancy outcome of entertainment is one factor of a longer-binge watching session (Dunn et al., 2015).

2.2.9. Willingness to Subscribe

Wang et al. (2005) found that there must be an added value in online-based services to make consumers willing to pay for the contents. Some people are willing to buy the product of any brand for the symbolic meaning, and one of the reasons is to communicate to the society where they live (Phuong & Dat, 2017). In some cases, consumers appear to be most willing to pay for content with superior quality, exclusive value, or the ability to meet the customers' more emotional or passionate needs. On the other hand, consumers often use price as an indicator of some services or product quality. They expected that the more expensive the price, the higher the perceived quality. When a channel can meet the customer's expectations, especially when the content or information in that channel is exclusive, then the customers are willing to pay or subscribe for a service and product from that channel.

Generally, if customers consider a product or service to be of higher quality than another similar product or service, they naturally do not mind paying a higher price (Wang et al., 2005). In the current research context, if a customer becomes accustomed to accessing certain online content or services, it makes sense that he will be willing to pay to continue accessing them if the need arises. The more quality products or contents provided, the higher the customer's pleasure, then it can lead to profits for the brands (Yusuf et al., 2019).

3. Research Methodology

3.1. Research Model and Hypotheses

This study aims to discover the effect of Instagram Content, Exclusivity, and Motivation on Netflix Customer Engagement among millennials subscribers in Indonesia. Based on the previous studies described in the literature review, the following conceptual framework has been developed for research purposes in Figure 1. This framework will produce better customer engagement recommendations based on appropriate and relevant segmentation in the media streaming industry.

Figure 1: Research Framework

Based on the research framework, hypotheses are formulated as summarized below:

H0: Instagram Content does not influence Netflix Customer Engagement

H1: Instagram Content influences Netflix Customer Engagement

H0: Instagram Content does not influence Willingness to Subscribe

H2: Instagram Content influences Willingness to Subscribe

H0: Perceived Price does not influence Netflix Customer Engagement

H3: Perceived influences Netflix Customer Engagement

H0: Perceived Price does not influence Willingness to Subscribe

H4: Perceived influences Willingness to Subscribe.

H0: Exclusivity does not influence Netflix Customer Engagement.

H5: Exclusivity influences Netflix Customer Engagement.

H0: Exclusivity does not influence Willingness to Subscribe.

H6: Exclusivity influences Willingness to Subscribe.

H0: Motivation does not influence Netflix Customer Engagement.

H7: Motivation influences Netflix Customer Engagement.

H0: Motivation does not influence Willingness to Subscribe Engagement.

H8: Motivation influences Willingness to Subscribe.

H0: Willingness to Subscribe does not influence Netflix Customer Engagement.

H9: Willingness to Subscribe influences Netflix Customer Engagement.

3.2. Data Collection and Research Method

This study was quantitative research with a positivism paradigm, and the format is an explanatory survey. The survey was conducted to determine the responses of specific people or groups in the community sought through an online questionnaire. Therefore, the sampling technique used is non-probability sampling, in which the sample in this study was chosen based on specific considerations from researchers and research objectives. Then the sampling technique or sample design used is purposive sampling. This technique includes people selected based on researchers' specific criteria based on research objectives.

VOD is becoming a trend among young people, especially students and tech-savvy fresh graduates who prefer to watch movies and TV series via the internet rather than TV to avoid disturbances arising from advertisements (Bhasin, 2019). Based on the data, the samples from this research are people who fulfill the following criteria, which is man and woman; born in 1981-2002 or aged 18-39 years (Millennials) in 2020, Instagram followers @netflixid who are also active subscribers @netflixid in the areas of Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodetabek) in Indonesia. Meanwhile, to determine the number of samples, researchers used the Yamane technique. The population of this study is 418,000 Netflix Indonesia Instagram Followers (@netflixid) in June 2020. Based on the Yamane formula, then the number of samples to be tested can be obtained as follows:

\(\begin{array}{c} n=\frac{418.000}{\left(418.000\left(0,1^{2}\right)\right)+1} \\ n=\frac{418.000}{4.180+1} \\ n=\frac{418.000}{4.181} \\ n=99,98=100 \end{array}\)

Then 100 Instagram @netflixid followers who met the criteria were sampled from this study. They were contacted via Instagram Direct Message (DM), and they filled out a questionnaire in Google Form, which was included via the link in the Direct Message.

In this study, the respondents' answers were calculated using Structural Equation Modeling (SEM) and SmartPLS 3.0 to process the data. Several stages were conducted in performing the analysis, namely designing path analysis, testing the outer model, and testing the inner model.

A questionnaire was designed to capture the respondents' responses based on the constructs of Instagram Content, Perceived Price, Exclusivity, Motivation, Willingness to Subscribe, and Customer Engagement. Exogenous variables in this research are Instagram Content (X1), Perceived Price (X2), Exclusivity (X3), and Motivation (X4). The endogenous variables in this research are Customer Engagement (Y). The moderator variable in this research is the Willingness to Subscribe (X5). Responses to each statement in each variable were on a 5- point Likert scale (1 for strongly disagree, 2 for disagree, 3 for neutral, 4 for agree, and 5 for strongly agree).

Dimensions were used to form the questionnaire. Instagram content has four dimensions: informational content, entertainment content, and relational content (Dolan et al., 2016). Meanwhile, the Perceived price dimensions were attractiveness and fairness (Janiszewski & Cunha, 2004). According to Weeds (2015), exclusivity has four dimensions: content access, content quality, recommendation algorithm, and original content. Rubin (1983) stated that relaxation, companionship, habit, entertainment, social interaction, information, arousal, and escape are motivation dimensions. Willingness to subscribe has five dimensions: convenience, essentiality, added value, perceived service quality, and usage frequency. Meanwhile, customer engagement has three dimensions: affective, cognitive, and behavioral (Dessart et al., 2015).

4. Data Analysis and Result

4.1. Descriptive Information

Of 100 respondents participating in this survey, 44 percent were male, and 56 percent were female. Their ages vary, and the highest was 24-28 years old, which means 69 percent of the total respondents. Sixteen percent aged between 19-23 years old and 10 percent aged between 29- 33 years old. Meanwhile, only four percent of the respondents aged between 34-38 years old and one percent aged 18 years old. We can conclude that most Netflix subscribers in Indonesia are in the age range 24-28 years old (Gen Y). The research results also found that 51 percent of respondents live in Jakarta, 18 percent live in Bekasi, 13 percent lived in Tangerang, eleven percent lived in Bogor, and seven percent lived in Depok. Therefore, we can conclude that most Netflix subscribers live in the capital city of Indonesia, Jakarta.

4.2. Evaluation of Measurement Model

There are three measurement criteria for assessing the outer model: Convergent Validity, Discriminant Validity, and Composite Reliability.

4.2.1. Convergent Validity

To test the convergent validity in the measurement model, the parameters that must be considered are the loading factor and average variance extracted. If each dimension's loading value is 0,6, then it is considered that the latent variable's indicators are sufficient and significant. So, this study uses a loading factor limit of 0.6. Items with a loading factor value below 0.6 will be excluded from the analysis. Convergent validity was fulfilled if the AVE value is 0.5. The model was analyzed in SmartPLS software, as shown in Figure 2.

Figure 2: SmartPLS Model

Based on the test results, it is found that the AVE values of Instagram Content (X1) are 0.615, Perceived Price (X2) is 0.635, Exclusivity (X3) is 0.666, Motivation (X4) is 0.534, Willingness to Subscribe (X5) is 0.522. Customer Engagement (Y) is 0.541, which managed to exceed 0.5. Moreover, the loading factors range from 0.600 to 0.907, which managed to exceed 0.6. Then it can be ascertained that each dimension meets the recommended criteria, as shown in Table 1.

Table 1: Reliability and Confirmatory Factor Analysis

4.2.2. Discriminant Validity

Discriminant validity is the extent to which a construct was genuinely distinct from other constructs by empirical standards. Thus, establishing discriminant validity implies that a construct is unique and captures phenomena not represented by other constructs in the model (Hair et al. 2016). With SmartPLS, analysis can be obtained by looking at Fornell-Larcker Criterion and cross loading.

Based on Table 2, the Fornell-Larcker value between the same variables is greater than the value between variables and other variables. It means that the validity was apparent.

Table 2: Fornell-Larcker Criterion

And based on Table 3, the Cross Loading score of each construct is higher than the value of the other constructs. Thus, each construct is a unique variable and different from other variables because the correlation between the latent variable and each indicator is more significant than the correlation with other latent variables.

Table 3: Cross Loading Values

Note: IC = Instagram Content, PP = Perceived Price, EX = Exclusivity, MO = Motivation, WS = Willingness to Subscribe, and CS = Customer Engagement

4.2.3. Construct Reliability

Reliability is an index that shows how a measuring tool can be trusted or relied upon. Composite reliability that measures a construct in research is evaluated using Cronbach's alpha. The method for assessing the reliability and internal consistency of each construction in this study uses Composite Reliability and Cronbach Alpha. The acceptable threshold level for the test is 0.7, thus indicating adequate internal consistency (Hsu et al., 2014).

The Cronbach's Alpha value or each variable's score is in the range of 0.816-0.946. The Composite Reliability value of each variable is in the range of 0.873-0.946, as can be seen in Table 1. This result means that each variable has a high level of reliability.

4.3. Evaluation of Structural Model

The structural model shows the strength of estimates between latent or construct variables. Based on the test results, it was found that the r-square value of Instagram content, perceived price, exclusivity, and motivation on willingness to subscribe was 0.574. This result can be interpreted that Customer Engagement can be explained by the endogenous variables (X1-X5) of 57.4%. In comparison, the r-square value of Instagram content, perceived price, exclusivity, motivation, and willingness to subscribe to customer engagement was 0.773. This result can be interpreted that variables can explain 77.3% of customer engagement constructs in this research.

Then, based on the path coefficient value, between variables close to +1 represent strong positive relationships statistically significant. The resulting t-statistic value is also higher than the t-table value of 1.29, with a significance level of 90%.

Based on the results in Table 4, it was known that Instagram Content (X1), Exclusivity (X3), Motivation (X4), and Willingness to Subscribe (X5) have a positive and significant impact on Customer Engagement (Y). Meanwhile, Perceived Price (X2) has an insignificant impact on Customer Engagement (Y). Furthermore, all latent variables have a positive and significant impact on Willingness to Subscribe (X5).

Table 4: The hypothesis of the structural model

5. Discussions

This research was trying to predict the impact of Instagram Content, Perceived Price, Exclusivity, Motivation, and Willingness to Subscribe (as the mediating variable) on Netflix Customers' Engagement to see the influencing factors the form of engagement on millennials subscribers in Indonesia. Based on the hypothesis testing results, it can be concluded that 8 of the nine proposed hypotheses were accepted with the information in Table 4. The research results indicate that there are five constructs with a positive influence on Customer Engagement and one construct that has a negative influence. The most significant construct influencing Netflix customers' engagement is Willingness to Subscribe (X5) with a 7.943 t-score. This result is higher than the t-table score, which is 1.29, with a significance level of 90%. The indicator "I am willing to subscribe to Netflix because I can access movies and TV series exclusively" has the most significant influence on customer engagement with a score of 0.838 in the outer loading.

Exclusivity has a significant impact on willingness to subscribe with a t-score of 3.544; it means that exclusivity and willingness to subscribe are significantly related. Exclusivity also has a significant impact on customer engagement with a 2.841 t-score, as can be seen in Table 4. This result was in line with Weeds' (2016) research, which stated that by making such content available exclusively to its subscribers, exclusivity becomes potentially attractive as a competitive strategy. The indicator "Netflix provides recommendations for movies and TV series that suit my viewing taste" in the Exclusivity construct has the most significant influence on customer engagement with a score of 0.855 on outer loadings. This result shows that Netflix's strategy in defining their programming against traditional television to make the streaming more engaging form of television by its recommendation algorithm to make it suits their audience's movie preference succeeded among Indonesia's millennials subscribers. This result was an important finding because increasing exclusivity level by making recommendation algorithm according to each audience's tastes can successfully improve the customer's willingness to subscribe and lead it to customer engagement between subscribers and the media streaming brand.

On the other hand, motivation also has a positive effect on willingness to subscribe and customer engagement. This result was proven by the t-score of 1.975 on customer engagement and 4.287 on willingness to subscribe. The subscribers' motivation to watch Netflix is because they want to get some entertainment and inspiration. The indicator can be it, "I watch movies on Netflix to get entertainment and look for inspiration," which has the highest loading value, 0.815.

As a powerful digital tool, Instagram content positively affects the willingness to subscribe based on the t-score of 1.838. Instagram content has a positive impact on Customer Engagement as well, with a 1.386 t-score. The highest outer loading score was "I use Instagram to find useful information" indicator. It means that millennials use Instagram as a place to find various information.

Besides, it was also found that perceived price negatively contributes to customer engagement, as evidenced by the t-score of 0.560, which is lower than the significance level at 1.29. The reason is that customers already feel that price is a consequence when choosing to use a service or buy a product from a brand. When they feel that the price is not worth it, they will not re-purchase, and the engagement will not happen between the customers and the brand. However, the Perceived Price has a significant impact on Willingness to Subscribe with a t-score of 2.135.

Moreover, the Customer engagement construct's most influential indicator is "I recommend Netflix to my friends and family," a loading score of 0.799. This result shows that the most robust engagement that has taken place between Netflix millennials subscribers and Netflix was shown through the Behavioral aspect. Customer engagement is positive because it proves that word of mouth—one example of positive customer engagement—occurs. This result illustrated that engagement involves having a relationship with the firm that is deeper than just making purchases. It is going beyond the purchase.

6. Conclusions

This research aims to evaluate the influence of Instagram Content, Perceived Price, Exclusivity, Motivation, and Willingness's role to Subscribe (mediating variable) on Customer Engagement, using SEM-PLS. The positive influence of Instagram Content, Exclusivity, and Motivation was seen on the Customer Engagement of Netflix millennials' subscribers in Indonesia. Meanwhile, Perceived Price has a negative impact on Customer Engagement. The exclusivity of Netflix content has proven very effective in attracting subscribers' attention to engage with their content. This finding is interesting and unique because it was found that millennial subscribers in Indonesia are willing to pay a subscription fee to be able to watch movies that suit their tastes. Netflix is proven to be able to meet their expectations because it provides a recommendation algorithm that supports it. In addition, the biggest motivation for millennials to watch movies or TV series on Netflix is to get entertainment and inspiration. It can be revealed that Netflix can provide entertaining content.

From this research, it was also found that millennials in Indonesia using Instagram are to get useful information, where @netflixid Instagram account provides a variety of information about the audience's favorite movies or TV series with content that is uniquely wrapped and suits the young generation's lifestyle. From these results, recommendations for similar industries can be drawn to increase the exclusivity of services and content, especially in adjusting each audience's character's tastes. It is also essential to find out the audience's motivation to choose a media streaming platform to present content according to their customers' needs. Furthermore, to strengthen beyond purchase relationships with millennial customers, Instagram can still be a digital platform proven to be influential. However, it takes robust and unique content that fits the lifestyle of the audience.

This research also discovers that the most potent form of engagement shown by Netflix's millennials subscribers is a behavioral aspect that leads to social interactions. They positively recommend Netflix to their families and friends (word of mouth). It also shows that millennials tend to give recommendations regarding the brands they like.

In addition, the framework in this study also serves as a platform for academics interested in learning the concepts of customer engagement in marketing management related topics, especially related to the millennial generation. Furthermore, this study adds new insights to the body of the existing literature on Instagram Content, Perceived Price, Exclusivity, Motivation, Willingness to Subscribe, and Customer Engagement in the media streaming industry.

This study has the following limitations. First, it only focused on the millennial's sample, the Instagram followers of @netflixid who Netflix subscribers in Indonesia are also. Hence, the researcher should investigate whether similar findings can be generalized to different generational profiles and social media platforms in future research. Second, it would be interesting to test the proposed model in other media streaming brands to see the result's comparison. Third, this research focused on Indonesia, especially in the Greater Jakarta area.

Therefore, future research will need to include a sample from other regions of the world to find cross-cultural evaluation, effects, and variations in the customer engagement aspect. This paper only focused on the millennial generation. So, it is possible to research the other generation to compare customer engagement motives, especially in the media streaming industry. Based on the results, future studies should also focus on what drives engagement and what obstructs it because engagement is a multidimensional phenomenon that requires further research.

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