YODIA NOVIERA C
041424353024
Dosen Pembimbing
Dr. Tanti Handriana,SE., M.Si.
ABSTRACT
The easier the internet access, creating a new lifestyle pattern for the average Indonesian community recorded the Indonesian people tend to spend 3.5 hours per day to access the internet via mobile devices (www.cnnindonesia.com). The rapid development of technology, the internet and people's lifestyles today can be a great opportunity for the world music industry.
Based on a survey conducted by the Board of Recording Association of All Indonesia (ASIRI) that per day happened 6 million downloads through illegal sites. If the price of one song is around Rp. 1,000, then the loss will reach Rp. 6 billion per day (www.kompas.com). The emergence of several licensed music streaming application services is expected to be a solution to these problems. Joox provides licensed songs from various world record labels. Joox is a freemium app, which means that users can listen to music for free but for wider access users must subscribe to paid.
Based on Spotify's financial statements, they claim to experience net losses every year. Spotify CEO Daniel Ek once said that his company had paid
70% of total revenue to the music industry. While the remaining 30% is used to cover marketing, product development and infrastructure costs (www.marketeers.com). To pay for all those expenses, online music players continue to boost the number of new users. The more users, the more money they should receive. Unfortunately, the portion of paid users or subscribers is far less than "gartisan" aka users who listen to music for free. Free mentality is the understanding that online business should be free and does not charge any fees for consumers because they have earned substantial advertising revenue.
This study aims to determine the effect of expected outcomes, added value, free mentality, perceived cost, perceived risk on perceived cost, perceived risk and the influence of attitude toward paying for willingness to pay on Joox streaming music applications. This study uses data analysis method using SmartPLS version 3.0 software that is run with computer media. PLS (Partial Least Square) is a structural equation analysis (SEM) based on variants that can simultaneously test measurement models while testing structural models.
Keywords : streaming music, free mentality, perceived, attitude toward paying, willingness to pay.
