The question if streaming is the next big thing for the music industry will be eventually answered by the music consumers. Several studies were conducted in past few years – most of them commissioned by music industry bodies – to assess the future potential of music streaming. It is essential for music streaming services and the copyright holders (labels and music publishers) if consumers are aware of streaming services, if they are using them frequently and if they are prepared to convert from Freemium to subscription models. Therefore the results of the studies are important indicators for the future development of the music industry. Although they provide different and even contradictory results – due to a different methodology – they help us nevertheless to understand music consumption behaviour in the digital age. In the following I would like to review some of the studies published in the past three years.
Posts Tagged ‘willingness to pay
Tags: ad-supported streaming, audio-only streaming, brand awareness, brand knowledge, consumer study, digital music market, freemium, music consumer, music consumption behaviour, music streaming, music subscription, music user, music video website, Spotify, willingness to pay, YouTube
In their working paper Curien and Moreau (2005) proposed a model of the music industry under “piracy” in which they took into account quality, variety, as well as price adjustments and showed that P2P file sharing networks could have a positive impact on the music industry as whole (recorded and live music as well as complimentaries such as ringtones). However, record companies bear almost all of the negative effect, whereas artists rather benefit from it, since royalties are often the smallest amount of their income, whereas “piracy” tends to boost live performances. Continue reading ‘How Bad Is Music File Sharing? – Part 7’