FROM FREE TO PREMIUM USERS: ANALYZING THE INTENTION TO SUBSCRIBE MUSIC STREAMING SERVICES

Abstract

The global music industry had undergone enormous changes from time to time as a result of digitalization. In particular, music streaming platforms had radically transformed the entire music industry. However, these online platforms were facing the ultimate challenge of converting the free users to subscribe to the paid version (premium) of their services, especially given the various free alternatives out there. Therefore, the researchers conducted a study to analyze the factors that could predict people’s intention to subscribe to music streaming services. The present study’s predicting variables included perceived critical mass, perceived price, with perceived enjoyment, perceived usefulness, and perceived ease of use, and perceived value as the mediating variables. This research used a quantitative method using Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze the data of the respondents (n=349) who lived in the Greater Jakarta area. The results showed that perceived usefulness did not significantly influence both perceived value and intention to subscribe. Meanwhile, perceived enjoyment had a significant influence only on perceived value. Perceived critical mass significantly affected perceived enjoyment, perceived usefulness, perceived ease of use, and intention to subscribe. Finally, perceived price and perceived ease of use significantly influenced both perceived value and intention to subscribe to music streaming services. The result for the adjusted R2 of the endogenous variable was 51%.