Converting music streaming free users to paid subscribers: social influence or hedonic performance

Abstract

In order to increase revenues and sustain business, the music industry is directing efforts into increasing paid subscription by converting free listeners into paid subscribers. However, most companies are struggling with these attempts because they lack a clear understanding of the psychological and social purchase motivations of consumers. This study compares and contrasts the two different purchase motivations of consumers: social influence and hedonic performance expectancy. A survey was conducted with 243 users of on-demand music streaming services. Our data analysis shows that social influence impacts consumer attitudes towards music streaming, which in turn drive purchase intention. On the other hand, continuance intention of paid music streaming is driven by hedonic performance expectancy of consumers, not consumer attitude. These results imply that the music industry needs to differentiate its approach to prospective and current customers of music streaming services.