Streaming to the Future: An explorative study about Generation Z and its music consumption

Detta är en D-uppsats från Handelshögskolan i Stockholm/Institutionen för marknadsföring och strategi

Sammanfattning: The music industry has changed rapidly during the last years. In Sweden, the market has become almost completely digitalized in less than a decade. There is an intense on-going debate between existing and new players trying to enter the market, discontent artists threatening to withdraw their music from music platforms and established record labels pushing to disable the free, ad-funded models. The purpose of this study was to analyze what shapes the current consumption patterns for Generation Z, born after 1995 as the first generation to be born into the digital age, in terms of attitudes, behavior and preferences for ways to consume music to further study its drivers for payment and reactions to potential changes in the fluctuating music market. The study is conducted on the Swedish market and follows an Explorative Sequential Mixed Methods Design with a quantitative main study with 377 respondents. Findings show that the main drivers of payment for Generation Z are related to this group's financial situation, attitude towards subscriptions and content in general as well as how important music is for each individual. Furthermore, the presented findings lead to the conclusion that the optimal monthly market price for music subscription services, where a distinct majority of this group would subscribe to a premium alternative, is SEK 49. Removing free alternatives or reducing the music catalogue of existing music streaming service providers will result in Generation Z looking for other free alternatives. The implications for decision-makers are to avoid disabling free alternatives for music service providers or reduce the catalogue, since this could spark a new piracy wave.

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