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Consumers Perception of Freemium Services: Factors Influencing Consumers Choice of Premium or Free Services
2015 (English)Independent thesis Advanced level (professional degree), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Illegal downloading of music was supposed to fade out when music streaming revolutionizedthe digital era. It has not yet succeeded. Music streaming services attract customers by providing limited free music. Income is generated from the same customer paying for a full service. This study aim to find why music consumers choose to pay for music that can be listened to for free and what influences individuals to not pay for the service. Based on theory of consumption values and social sharing it is investigated how various factors influence purchase intention. Data collected from 325 respondents tell us that 44% listen to music more than 10 hours per week but do still not consider the future of their favorite artists. They do not regard artists’future as a legit reason to pay for the music service. In contrast, price and quality are found to be the most important factors to why music consumers want to pay or not for a premium service. In line with recent research conducted by Regner (2014) it is found that individuals rather save face than care for the future of music artists. Online social sharing has high impact on purchasing a service among those not paying for a premium service but do not influence further purchasing among current premium users. Further research is recommended on understanding why people do not purchase the music service when these are attracted to the offer.

Place, publisher, year, edition, pages
2015. , 73 p.
Keyword [en]
Social Behaviour Law
Keyword [sv]
Samhälls-, beteendevetenskap, juridik, Freemium för streamingtjänster, konsumtionsvärden påverkan på köp, musikkonsumtion, musikstreaming, theory of consumption values
URN: urn:nbn:se:ltu:diva-55900Local ID: cb488a67-c6d1-4784-bee8-52dc577a1f68OAI: diva2:1029284
Subject / course
Student thesis, at least 30 credits
Educational program
Business and Economics, master's level
Validerat; 20150630 (global_studentproject_submitter)Available from: 2016-10-04 Created: 2016-10-04Bibliographically approved

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Bertholdsson, SebastianDahir, Jonas

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