User Responses Towards Information Distribution of Copyright Law No. 28 of 2014 Concerning Permits for Commercial Use of Music Performing Rights

Abstract

Purpose: This article discusses public acceptance in the information distribution of Copyright Law no. 28 of 2014 and Government Regulation No. 56 of 2021 in Indonesia concerning the commercial use of music. Hospitality industry is one of the most affected by this regulations, which some hotelsrefused to comply. To get royalties, LMKN approaches with socialization either directly or indirectly to commercial music users. Research design, data and methodology: Quantitative survey by distributing questionnaires, then testing the validity and reliability tests using the SmartPLS application. The population studied were Hotels on Java and Bali Island in Indonesia. The research sample is 100 hotels. Result: R-Square value of 0.706 for the construct (Y) User Response which means that (X) Socialization can explain the variance (Y) User Response of 70.3%. This shows that the level of influence (X) Socialization has an effect on (Y) User Response. Conclusion: User responses regarding the distribution information of the Act indicate the need for socialization, because socialization provides literacy to the public. More frequent socialization will provide a good opportunity to increase the response of commercial music users.

1. Introduction

Music is an art or science in composing sounds or tones. Humans are basically always surrounded by music that is played personally or from other people. Music is an art that is most often felt by humans. Whether consciously or Subconscious, almost all people listen to music every day, for example when watching television shows, listening to the radio, playing smart phones, or when they are in public places. Due to the large amount of music consumed by humans, music can be said as a tool to communicate and be heard, one of which is in commercial areas. Music played in commercial areas such as shops can create a positive atmosphere (Park, Kim, & Yoo, 2019). Music is one of the factors that make the comfort in the restaurant (Kim & Yoo, 2015).

In 2020, Indonesian Government, in this case the Director General of Intellectual Property of the Ministry of Law and Human Rights is very supportive regarding policies for Music usage rights in public places such as karaoke, hotels, malls, cinemas, shops, seminars, recreation areas, restaurants, transportation and discotheques That have to pay to the Lembaga Manajemen Kolektif Nasional (LMKN) based on Copyright Law 28 of 2014. Copyright is the exclusive right to determine the way in which their copyrighted work is used commercially. The first collective management was developed in 1847 when two songwriters namely Paul Henrion and Victor Parizot also supported by their publishing to file a lawsuit against "Ambassauders", a cafe in Paris that aims to enforce copyright (Shang, 2015). The royalty collection scheme is created for facilitators of intellectual property rights holders to manage various uses made by the community (Nanayakkara, 2017).

The potential that has been generated by LMKN Was still far from the music royalty figure that should be obtained. With so many businesses such as shops, hotels, restaurants, hotels and others that play music in their business to audiences in Indonesia, LMKN should be able to collect more music royalties. until now, many business places played music to their customers, but many have not paid royalties, and don't even know that they must have a performing rights license or a license to play music to public. Business actors who do not comply are due to the opinion that policies can make a business lose. On the other hand, business actors receive the benefits of business stability from the existence of policies. A person can comply with a policy when there is a punishment from the government (Park et al., 2019).

Socialization is a process of incorporating actors into certain norms and rules in society (Checkel, 2005). Taxes are a classic example of a policy interdependence. Socialization among policy makers can weaken the dynamics of competition by limiting the extent to which it is acceptable or not (Gilardi & Wasserfallen, 2016). International organizations influence the behavior of their members through the process of socialization (Bearce & Bondanella, 2007). Socialization often occurs in international institutions (Greenhills, 2010). Consumer experience determines attitudes and satisfaction in subsequent actions (Budi, Hidayat, & Mani, 2021). People who are aware of social responsibility, have a tendency to participate in the economy in sustainable redistribution (Yoon, 2021).

In organizations, collective socialization is an effective strategy as a form of socialization. Positive or negative types of socialization can significantly affect audiences (Tausczik, Farzan, Levine, & Kraut, 2018). A company should make users who are loyal and interested in the brand they distribute (Kim, 2017).

Public non-dramatic performances occur everywhere in thousands of retail businesses, on radio, television, etc. Other public venues for performances may include bars, restaurants, hotels, retail stores, colleges and universities, theme parks, sporting events, major concert venues, local rock & roll, country, or jazz clubs, symphony concert halls or many others. Shows can be on music channels on airplanes, music at conventions, or music on hold on the phone (Pitt, 2010). Having a performing rights license means that it is protected by regulations. To protect and compensate copyright holders, the Collective management organization works efficiently in monitoring user behavior and detecting infringement (Shang, 2015).

Therefore, this study focuses on factors that have not been found in previous studies, so that there is a uniqueness or novelty in communication public policy. The purpose of this study was to determine the effect of LMKN's communication on Copyright Law No. 28 of 2014 on the response of Hotels as commercial music users in paying royalties for performing rights music in Indonesia.

2. Literature Review

2.1. Situational Theory of Publics

This theory was put forward by James E. Grunig. According to Grunig, the term public is the key to the phrase public relations. A public relations practitioner usually does not uses “public” to mean mass population and refer it as general public. On the other hand, Public relations practitioners use the term public to refer to the intended group of consumers in a PR program, investors, governments, journalists, employees, members of associations, local communities, and non-profit groups (Heath, 2013).

JE Grunig (1997) defines four types of publics identified in the study, namely: (a) all-issue publics, namely active on all money issues measured in a study; (b) apathic publics, which are negligent to existing problems; (c) single issue publics, means being active in one issue; (d) hot-issue publics being active on an issue and involving almost everyone in the population and has received media coverage (Heath, 2013).

2.2. Stimulus-Organism-Response

In this study, we use the S-O-R framework, because previous research has shown its predictive power in how retail consumers react to stimuli in a new environment. (Gao & Bai, 2014; Mehrabian & Russell, 1974; Xu, Benbasat, & Cenfetelli, 2014). we adapted the stimulus - organism - response (S-O-R) framework (Mehrabian & Russell, 1974).

Marketing research has used the S-O-R framework in understanding a factor in the environment (Xu et al., 2014), The framework is based on the work of Mehrabian and Russell (1974) who conceptualize behavior that exists in the environment and consists of stimuli. These stimuli affect both cognitive and affective processes of the consumer and lead to behavioral responses. This concept has been divided into three parts where instead of direct causality between stimuli and actions, affective and cognitive intermediate layers (Xu et al., 2014).

1. Message (Stimulus, S)

2. Reception (Organism, O)

3. Attitude (Response, R)

Figure 1: Stimulus Organism Response (Cziko, 2000)

The S-O-R model in the figure above shows a linear and three-stage relationship with environmental and social stimuli that act as external antecedents for the organism. The assumption of this approach is that stimuli act on unprepared and inactive organisms (Eysenck & Keane, 2000).

Information processing is carried out from active organisms from past experiences and will affect not only information processing, but also information received and sought. Information processing will be stimulus-driven as well as concept-driven (Groome, 1999).

Definition of persuasive communication is a communication that is carried out and aims to influence someone so that the person makes changes in themselves. The changes that occur are from the cognitive, affective and conative aspects (Alvonco, 2014).

2.3. Persuasion

According to Bettinghaus (1973), persuasion is an attempt to influence one's actions and thoughts, it can also be an activity relationship between a speaker and a listener. For example, the speaker tries to influence the behavior of the listener by means of an intermediary of sight and hearing. Persuasive communication is a communication process that has the aim of trying to influence the opinions and thoughts of others in order to match the wishes of a communicator or speaker. Persuasion can also be a communication process to persuade others with the aim of changing beliefs, attitudes and opinions according to the wishes of a communicator, and this invitation does not mean threats or coercion. (Burgoon & Ruffner, 2002). The purpose of persuasive communication itself is not only to tell something, but also to change opinions, attitudes and behavior (Berger, 2009).

2.4. Public Acceptance

Generally, public or social acceptance is a positive response (intentions, attitudes, behavior) related to a policy made by certain social units such as regions or countries, cities, communities and organizations (Upham, Oltra, & Boso, 2015). Social acceptance is also achieved because there is transparency, public participation, good structure, focus on trust and building good relationships and communication (Haug & Stigson, 2016; Schmidt & Donsbach, 2016). Furthermore, one of the important things is to have economic benefits and employment opportunities (Cowell, Bristow, & Munda, 2011). Factors that affect trust in institutions are transparency, communication, fair distribution, coordination with shareholders (Vaske, Absher, & Bright, 2007; Wagner & Fernandez-Gimenez, 2008; Stigka, Paravantis, & Mihalakakou, 2014).

An awareness and knowledge of the public or the public regarding the policy can influence the recipient (Haug & Stigson, 2016; Siegrist, 2000). Including socio-demographic factors, age, education, income (Petrova, 2016; Westerberg, Jacobsen, & Lifran, 2015). People between countries have different preferences due to cultural circumstances, and the prevalence of trust in a government as well as institutions (He, Mol, & Lu, 2018).

2.5. Use of Music in the Hospitality Industry

There are several terms used in the music industry, namely the recording industry, the music business and the music industry. The political economy in a music industry is examined on behalf of the UK government. They have conducted research on the value and structure of the international, national and local music economy (Dane, Feist, & Laing, 1996). In 2002 the National Music Council in the UK reported that there are 7 sectors in the music industry, namely songwriting, promotion, publishing, management, live performance, recording and distribution, training and education (Dane & Manton, 2002).

Using music in the hospitality industry can be useful for organizations that aim to shape the emotional or psychological status of customers and also as a form of customer evaluation of the experience (Kemp, Williams, Min, & Chen, 2019). The use of music can be a form of mood adjustment (Chin, 2012). Research also shows that playing music can have an impact on pleasure and arouse consumers (Garlin & Owen, 2006).

2.6. User Response to Socialization

User response is an activity that can be observed and is directly connected to communication (Xenos, Macafee, & Pole, 2017). Previous research has obtained some form of results from user activity in estimating distributions by accumulating large response rates (Nielsen & Vaccari, 2013). Narud and Esaiasson (2013) proposes a theoretical approach, namely to get a response by listening and then finding out what the community wants, explaining and developing their own position to the community, adapting and fulfilling what the public wants. It seems quite reasonable to understand communication as a better response than adaptation (Öhberg & Naurin, 2016). Mentoring provides assistance in socialization for growth (Chang & Kim, 2018). Customer socialization is a process from the company to socialize customers so as to create an understanding of the vision, goals and core values of the company (Shin & Joo, 2015). The effect of direct socialization in the group (subculture) considers a more comprehensive view (Giletta, Burk, Scholte, Engels, & Prinstein, 2013). This form of socialization does not directly make changes in adolescent behavior (Brechwald & Prinstein, 2011).

3. Hypothesis Development

There are several variables that can affect the user's response, but in this study, a few variables were used to test it. These variables have a significant effect on the dependent variable. In conducting the analysis, this research is socialization (X) as an independent variable. Then the user response (Y) as the dependent variable. Variable is a variable which is a variable that can be influenced by freely. An independent variable is something that can affect other variables and can affect one or more variations (Stiff & Mongeau, 2016).

Hypothesis testing in this study uses a statistical method PLS or the abbreviation of Partial Least Square using the SmartPLS version 3. PLS is used as a predictive method that is able to handle many independent variables, even if there is multicollinearity between these variables. The hypothesis is also a question related to the state of the population that will be tested for truth based on data obtained by the research sample (Suryabrata, 2000). The following is the hypothesis in this study:

Hypothesis:

H0: Socialization has no effect on user response to paying music royalties.

H1: Socialization affects the user's response to paying music royalties.

Figure 2: hypothesis variable

4. Methodology

This study uses the positivism paradigm which is used to examine the condition of objects naturally. Neuman (2017) explained that explanatory research is a type of research that aims to explain an event, deepen, shape, develop and test a theory. This study Is an explanatory with the initial stage of exploration followed by a description and then answering the question, to find out how response of hotels on the islands of Java and Bali in paying music royalties to LMKN. This study uses a quantitative approach By surveying hotels as commercial music users on the Java and Bali island. Questionnaires uses in this study consist of structured questions and will be answered by respondents to obtain information. In addition, researchers also collects data or public documents such as books, journals, official websites and the internet as sources that help in research (Neuman, 2017).

This research was conducted in 2021, and data collection was carried out in April 2021. One of the methods used in determining the number of samples in quantitative research is the Slovin formula (Sevilla, 2007). The number of hotels on the islands of Java and Bali is 36.344 hotels, based on calculations using the Slovin formula, the sample in this study was 99.725 and then rounded up to 100 samples. Respondents voluntarily answered online questionnaires distributed via email, phone call, and whatsapp.Data processing is being done using SmartPLS version 3 software to accommodate complex model and limited number of samples.

Corporate respondent data in this case are hotels from seven provinces in Java and Bali islands, respondents representing the hotel are people who have competence in licensing management, starting from the Human Resource Development section, Human Resource Manager, General Manager, and the Legal part of the hotel.

4.1. Scale of Measurement

This research uses two elements: Socialization and user response. These variables were examined using SmartPLS Version 3. This instrument created a questionnaire to measure user responses based on socialization. Kelinger (1973) in (Sugiono, 2012) explains that variables are constructs or traits that are studied. In this study there are 2 variables, namely the independent variable and the dependent variable. In this study, the dependent variable is the user's response. The independent variable in this study is socialization. Responses to each question in the variables are on a 5-point Linkert scale (1 strongly disagree, 2 agree, 3 neutral, 4 agree, 5 strongly agree). Here are the dimensions in each construct.

Table 1: Measurements

4.2. Descriptive Information

There were 100 hotels that became respondents in this study, ranging 100 hotels filling out the questionnaire created by the researcher. Respondent data that was obtained from seven provinces on the island of Java and Bali consisted of 4% hotels in the province of Banten, 18% hotels filling out the questionnaire from the province of DKI Jakarta, then most of them were from the province of West Java. namely there are 35% hotels, then from Yogyakarta province there are 8% hotels that become respondents, then from Central Java province there are 8% hotels, then there are 18% hotels from East Java province which participated in filling out the research questionnaire, and finally there were 11% hotels in Bali.

Figure 3: Composition of Respondents by Region or Province

The demographic profile of the respondents obtained from a survey in the field where the hotel filling out the questionnaire is a member of the PHRI or the Indonesian Hotel and Restaurant Association. The hotels above are industries that must have a commercial music playback license or performing rights as regulated in Copyright Law No. 28 of 2014 and Government Regulation No. 56 of 2021.

4.3. Evaluation of Measurement (Outer) Model

4.3.1. Validity test

An indicator is declared valid when it has a loading factor above 0.5 for the intended construct. In the SmartPLS output for the loading factor in this study on the socialization of performing rights, the Copyright Law Number 28 of 2014 shows the results as shown in table 2.

Table 2: Cross Loading Factor Results

Table 4 shows that the loading factor of all indicators gives a value above 0.5 or above the recommended value. The smallest value on the loading factor above is in the Social media 2 indicator, which is 0.722 the latent variable Socialization in the research of performing rights socialization of Copyright Law Number 28 of 2014. Thus, the indicators used in this study are declared valid because they have convergent validity The loading factor diagram of each indicator is shown in the following figure:

Figure 4: Structural Model Research and Loading Factor

Table 4: Result Summary for Reflective Measurements

Source: Data Processing Result (2021)

Notes: 1. Perceived performance was removed as a construct due to factor cross-loading issues. See the discussion of discriminant validity for aditional details.

2. Accosiation meeting 2, Punishment 1, Online news 2, Social media 1 were removed to improve reliability, validity,and multicollinearity estimates.

3. The p value for each indicator was <.001.

Another method to see convergent validity is to look at the AVE value or Average Variance Extracted. Chin's recommended AVE value is above 0.5, in table 4 shows the AVE value in the research on performing rights socialization of Copyright Law Number 28 of 2014.

Table 4 shows the Average Variance Extracted or AVE value above 0.5 for all constructs in the research model. All indicators forming constructs in this study meet the criteria of convergent validity. In addition to the convergent validity test, the discriminant validity test of an indicator must also be carried out by looking at the value of the cross loading:

An indicator is declared valid when there is a loading factor that is highest in a target construct than the loading factor of another construct. In table 2 shows that the loading factor for the Socialization indicator (Reward 1 & Reward 2) has a higher loading factor for the Socialization construct than with the other constructs. The example in this study to (X) Socialization loading factor Website1 of 0.870 which is higher than the loading factor to (Y) user response which is only 0.716. The same is true for other indicators.

Another method to see discriminant validity is to look at a value of Square root of Average Variance Extracted (AVE). From table 4 it can be seen that the value of the square root of AVE in the socialization of performing rights of the Copyright Law Number 28 of 2014 (0.797; and 0.857) is greater than the correlation value of the latent variable. This means that the model in this study meets the criteria for discriminatory validity.

4.3.2. Reliability

Reliability is done by looking at a composite reliability value of the indicator block that measures the construct. The results of composite reliability will show a satisfactory value if it is above 0.7. The following is the value of composite reliability on SmartPLS output in research on the socialization of performing rights of Copyright Law Number 28 of 2014.

The table 4 shows that the composite reliability value for all constructs is above 0.7, meaning that all constructs in the estimated model meet the reliability criteria. The lowest composite reliability value in this study was 0.945 in the (X) Socialization construct. The reliability test can also be strengthened with Cronbatch's Alpha, namely the SmartPLS output gives the following results.

The recommended value in Cronbach's Alpha reliability testing is above 0.6. Based on the table above, it shows that the value of Cronbach's Alpha in this study is above 0.6, with the lowest value at (X) Socialization of 0.936.

Table 3: Square Root of Average Variance Extracted (AVE)

Source: Data Processing Results (2021)

5. Result

The results of this study were processed using SmartPLS version 3, and the results of the study will be shown in the table 5.

Table 5: R-Square Value

Source: Data Processing Results (2021)

Table 5 shows that the results of research on the socialization of performing rights of the Copyright Law Number 28 of 2014 where the R-Square value is 0.706 for the (Y) User Response construct which means that (X) Socialization can explain the variance (Y) Response Users by 70.3%. This shows that the level of influence (X) Socialization has an effect on (Y) User Response.

Furthermore, in this study conducting Path Coefficients which has the aim of knowing whether a hypothesis is accepted or rejected, using SmartPLS software, the analysis is carried out using bootsrapping on the sample. When t count > t table then the hypothesis is accepted. When doing the test, it is known that the T-Table value for the decision to donate is 10% with degrees of freedom (df) = n2 = 100-2 = 98 is 1661. From these results obtained data on relationships or factors between variables that influence as follows.

Based on table 4 it is found that the results of data processing for the socialization variable with user responses produce a t count > t table with a value of 26.523 > 1.661, which means that there is a positive influence and the hypothesis can be accepted. That is, the socialization variable has a significant influence on user responses.

Related to user response in the socialization of royalty withdrawal by LMKN. This study consists of the independent variable (X) Socialization and the intervening variable (Y) User Response. From the results of the validity test that has been carried out, there are 4 indicators of invalid questions, therefore the researcher deletes the 4 question indicators so that they become valid and significant. In this study, the average value of the average variance extracted (AVE) for the socialization value is 0.635, and for the user response is 0.735. Therefore, it can be said that the value for each construct on each indicator is good, because the value is more than 0.5 and has met the minimum requirements. Based on the results of hypothesis testing using SmartPLS, the results:

Hypothesis 1: Socialization affects the user's response to paying music royalties.

This study proves that socialization has a significant effect on user response in making music royalty payments. The results of this study indicate that the value of t arithmetic> t table with a value of 26.523> 1.661 which means it has a significance. This means that the stronger the influence of socialization, the better the user response obtained.

6. Discussion

Research finds result, namely from similar or different results from previous research. Researchers found proof related to the socialization and response of commercial music users. Based on the research Hypothesis 1 is accepted. That socialization has a significant effect on user responses (β=0.706). In line to previous research which states that the formal and informal socialization efforts carried out by the organization have a significant influence on the supplier's organizational culture as measured by organizational practices, and have a positive effect (Cadden et al., 2021).

Socialization is an important factor in implementing an institution's policies, this finding is in line with previous research that examined direct socialization that having a structural network has a significant effect. (Giletta et al., 2013). The message or stimulus conveyed to the communicant from the communicator can be accepted or can also be rejected (Effendy, 2003). A previous study suggested that experience significantly mediates the relationship between the two dimensions of stimulus and response (Goi, Kalidas, & Yunus, 2018).

7. Conclusions

Based on this research that has been done by taking samples from 100 hotels on the Java and Bali island regarding the effect of socialization on the response of commercial music users that has been carried out by researchers, Researcher found proof concluded that socialization has a significant influence on the response of commercial music users in terms of this is a hotel.

This shows that the more frequent socialization as a channel of information distribution will provide a good opportunity to increase responses from commercial or hotel music users. The evidence that socialization affects user responses does not include the form of socialization that is more acceptable to users, so we can focus on aspects of socialization that affect public acceptance.

This study also does not cover the effectiveness of the communication media used as a means of communication. This is in accordance with the vision of LMKN, which is to increase royalty income from commercial music users.

The results of this study can make a significant contribution to the literature, especially regarding the Stimulus-Organism-Response theory. First, this study introduces how a response made in the hotel industry in this case is the hotel sector to a policy regulated by the Copyright Act in Indonesia. Second, this study provides an overview of a society regarding the importance of socialization to introduce policies. Third, that this research can be useful for copyright holders to increase music royalty income for commercial use.

In this study there are several limitations. First, this research was conducted only on a sample of hotels on Java and Bali island. This research only focuses on the hotel sector, while there are still many other sector categories that have not been studied. Second, in this study, it can be shown that other samples that are larger, especially in locations with wider coverage and in sectors other than hotels, can be used to see the effect of each variable.