Music as a Service as an Alternative to Music Piracy? - An Empirical Investigation of the Intention to Use Music Streaming Services

Despite increasing acceptance of digital channels, total sales in the music business decreased by 31 % from 2004 to 2010. Music piracy is still considered one of the main causes for this. However, several studies found no effects or even positive effects of illegal downloading on record sales. In the past, piracy has been counteracted especially by prosecution and legal offers. Music as a Service (MaaS) represents a new, differing distribution approach in digital music. In contrast to the wellknown music platforms for so-called àla- carte downloads, such as the iTunes Store, MaaS possesses two important characteristics: transmission (streaming instead of downloading) and pricing model (flat rate instead of pay-perdownload). Therefore, the consumption of music by means of purchasing and downloading is replaced by a monthly payment service (paid MaaS) and an ad-supported (free MaaS) service. First user surveys suggest that many music pirates are making use of these offers. To find out if MaaS is an attractive distribution channel for music pirates, we developed a model to explain the intention to use MaaS based on the Theory of Planned Behavior. To empirically test this model, we surveyed 132 music pirates. Among others, the outcome shows that the intention to use free MaaS is mainly affected by the attitude towardsMaaS, while using paid MaaS is predominantly a result of the influence of users’ closest peers. The attitude towards MaaS is positively influenced by the desire to receive music recommendations, the payment type (in the form of a flat rate model), and the relative advantage of MaaS compared to illegal choices

Digital Rights Management and Consumer Acceptability: A Multi-Disciplinary Discussion of Consumer Concerns and Expectations

The INDICARE project – the Informed Dialogue about Consumer Acceptability of DRM Solutions in Europe – has been set up to raise awareness about consumer and user issues of Digital Rights Management (DRM) solutions. One of the main goals of the INDICARE project is to contribute to the consensus-building among multiple players with heterogeneous interests in the digital environment. To promote this process and to contribute to the creation of a common level of understanding is the aim of the present report. It provides an overview of consumer concerns and expectations regarding DRMs, and discusses the findings from a social, legal, technical and business perspective. A general overview of the existing EC initiatives shows that questions of consumer acceptability of DRM have only recently begun to draw wider attention. A review of the relevant statements, studies and reports confirms that awareness of consumer concerns is still at a low level. Five major categories of concerns have been distinguished so far: (1) fair conditions of use and access to digital content, (2) privacy, (3) interoperability, (4) transparency and (5) various aspects of consumer friendliness. From the legal point of view, many of the identified issues go beyond the scope of copyright law, i.e. the field of law where DRM was traditionally discussed. Often they are a matter of general or sector-specific consumer protection law. Furthermore, it is still unclear to what extent technology and an appropriate design of technical solutions can provide an answer to some of the concerns of consumers. One goal of the technical chapter was exactly to highlight some of these technical possibilities. Finally, it is shown that consumer acceptability of DRM is important for the economic success of different business models based on DRM. Fair and responsive DRM design can be a profitable strategy, however DRM-free alternatives do exist too.Digital Rights Management; consumers; Intellectual property; business models