The Freemium Model influence in the Music Streaming Service Context

Abstract

The increasing popularity of digital services was followed by the creation of innovative marketing strategies to attract and convert customers in the digital environment, such as the availability of digital products at zero prices. This project will investigate the freemium model phenomenon as a driver of consumer behaviour and intention to subscribe to Music Streaming Services. To accomplish the main objectives of this investigation, secondary research and the compilation of a comprehensive literature review gave information about the current knowledge of the impact of the freemium model in the market. Primary data collection was applied to test the literature and gather qualitative and quantitative information presented in this report. The main findings of the conducted project show that the Freemium model is directly linked with the retention and conversion of users in the streaming platforms. Moreover, the research was able to demonstrate differences in perception from users, which influence their view of the service and intention to buy. Furthermore, the impact of the advertisements on a specific group of users was also tested, confirming that the majority of users sorted their issues by upgrading their accounts and exchanging financial value with music streaming firms. To conclude the study, a convincing answer exemplified the influence of the model on users in Music Streaming Services and the possible advantages of applying freemium in this context. Also, it was discussed the implication of time constraints and a large amount of data as limitations to the study process.