Digital Music: A Study of Factors in Influencing Online Music Streaming Service Purchase

Abstract

Digitalization have caused the online subscription service industry to be one of the fastest growing industries in recent years especially the online music streaming service. To cope with the changes of the market demand transitioning from physical to digital, many companies from the music industry have been focusing on the digitalization of music streaming service as it is the most profitable subscription-based service. Therefore, it is crucial to examine the factors that may influence the adoption of online music streaming service, the Purchase Intention in the fee-based subscription. The objective of this study is to identify the factors that will affect the willingness of the consumers to subscribe to online music streaming service (Purchase Intention). Online questionnaire is conducted and the result is analysed by Pearson Correlation and Cohen’s f2, effect size. The findings show that Perceived Value (r=0.513, f2=0.36), Tangibility Preference (r=-0.349, f2=0.14), Music Affinity (r=0.229, f2=0.06) and Music Piracy Awareness (r=-0.380, f2=0.17) are the factors that will significantly influence the consumers’ Purchase Intention in online music streaming service. Keywords: Online Music Streaming Service, Perceived Value, Tangibility Preference, Music Affinity, Online Music Piracy