Analyzing Music Streaming Application Adoption in Indonesia Using a Unified Theory of Acceptance and Use of Technology 2: A Case Study of Premium JOOX and Spotify in Indonesia

Abstract

The high number of internet users in Indonesia impacts the behaviour of Indonesia’s people. Before digital technology penetrated the world of discussing, people are still using radio devices and CDs to enjoy the music. Unlike today, people can easily enjoy music anywhere and anytime without having to carry radio or CDs. There are so many music streaming application but there is still have a lack of promotion, the difficulty of paying and the exclusivity of the service providers make other music streaming application difficult to compete in the Indonesian market even more so with the emergence of two newcomers from streaming service providers who directly steal the public\u27s attention, they are JOOX and Spotify. The objective of this research is to analyse factors inside UTAUT 2 model that influence the consumer on using music streaming application premium service in android mobile phone in Indonesia and to analysed age and gender affecting the influence inside UTAUT 2 model in the context of music streaming premium service in Indonesia. This research used data from 400 respondents who lived in Indonesia and have been using music streaming application premium services. The main data resource of this study is by questionnaire, with 27 survey items from 9 constructs. This research has fulfilled the convergent and discriminant validity and has a good reliability as well. To test the hypotheses, this research use Structural Equation Modelling (SEM) with SmartPLS 3.0 as statistic software. The result revealed that there are six factors in the UTAUT2 Model which significantly influence the behavioral intention of premium service of music streaming application adoption, namely Habit, Hedonic Motivation, Social Influence and Performance Expectancy. In terms of moderating factors, both Age and Gender are not moderating any influences of factors towards Behavioral Intention. The model can predict moderate the behavioral intention of consumers towards premium service of music streaming application services in Indonesia since the R² is 58.3%. This model can be used by JOOX and Spotify management in making decisions to maintain the behavioral intention of consumers towards premium service of music streaming application adoption by paying attention to those factors and their indicators. This research has found that the most significant factor from UTAUT2 Model that influences the behavioral intention of JOOX and Spotify adoption in Indonesia is Habit. It means, JOOX and Spotify should develop more interesting discount promotion for engaging the consumers and maintain a error issues more regularly in order to engage the consumers. For further research, Since this UTAUT2 Model can be used for predicting the Behavioral Intention of premium service of music streaming application adoption in Indonesia since it has a moderate explanatory power which is 58.3% and categorized as a moderate model, further research is expected to do a research in the field of premium service of streaming music application but with a different research object. Keywords: JOOX, Spotify, behavior intention, use behavior, UTAUT 2, Indonesi