Users' Purchase Intention on Online Music Streaming Platforms - A Case Study of KKBOX and Spotify

The popularity of internet and the emergence of MP3 and mobile devices change the people’s habit of listening to music. The declining of physical record sales these years makes an impact on global music industries. However,these technical changes also make the transformation of global music industries. In Taiwan,there are 19 digital music companies providing the online streaming music sevices now. Not only replace the music industries’main revenue of physical record sales,but also become mainstream in the market. This research selected KKBOX the first and typical online streaming platform in Taiwan,and Spotify that is the first international online streaming brand in Taiwan and is known for the world’s highest market share as case studies to analyse the users’experiences and evaluations for these two platforms. First,comprehending the developments,services and differences between these two platforms based on literature review. Then, through the questionnaires, this study explores the users’ relationship to the platforms among perceived quality,perceived value and purchase intention. And the results suggested that Spotify is superior to KKBOX among perceived quality,perceived value and purchase intention to users. In particular, perceived value is the most important factor to affect the users using and buying online streaming platform. Despite this,KKBOX still has strong advantages on its influence and large numbers of Mandopop in Taiwan because of its localization, diversification and local record industries’ support. In the case of foreign brands successively entering, local digital music industries should enhance its service providing and improve user interface. In addition, they should maintain their Mandopop advantages and combine with different music industries like radio station to creat the unique and the leadership position in Mandopop industy.