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What do consumers prefer for music streaming services?: A comparative study between Korea and US

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  • Kim, Jiwhan
  • Nam, Changi
  • Ryu, Min Ho

Abstract

With the widespread use of mobile devices and increased availability of wireless networks, music streaming is replacing music downloads in the digital music industry. In the United States, streaming is still at an early stage with many different competing business models, while streaming services in Korea have converged towards a subscription-based on-demand model. This paper attempts to estimate and compare US and Korean consumers’ marginal willingness to pay (MWTP) for streaming services using conjoint analysis. The attributes of advertisements, streaming mode, exclusive content, and offline usage were chosen. The results indicated that US and Korean consumers have different preferences and MWTP for product attributes. Implications for streaming services as well as the streaming industry are suggested based on the results.

Suggested Citation

  • Kim, Jiwhan & Nam, Changi & Ryu, Min Ho, 2017. "What do consumers prefer for music streaming services?: A comparative study between Korea and US," Telecommunications Policy, Elsevier, vol. 41(4), pages 263-272.
    • Handle: RePEc:eee:telpol:v:41:y:2017:i:4:p:263-272
    DOI: 10.1016/j.telpol.2017.01.008
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    References listed on IDEAS

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    1. Bert Weijters & Frank Goedertier & Sofie Verstreken, 2014. "Online Music Consumption in Today’s Technological Context: Putting the Influence of Ethics in Perspective," Journal of Business Ethics, Springer, vol. 124(4), pages 537-550, November.
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    3. Wlömert, Nils & Papies, Dominik, 2016. "On-demand streaming services and music industry revenues — Insights from Spotify's market entry," International Journal of Research in Marketing, Elsevier, vol. 33(2), pages 314-327.
    4. Thomes, Tim Paul, 2013. "An economic analysis of online streaming music services," Information Economics and Policy, Elsevier, vol. 25(2), pages 81-91.
    5. Dörr, J. & Benlian, Alexander & Vetter, J. & Hess, T., 2010. "Pricing of Content Services — An Empirical Investigation of Music as a Service," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 57905, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
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